GRAMMYs
News

Music Matters in Washington

Facebook Twitter Email
Daryl Friedman
Advocacy
Jun 21, 2017 - 8:14 am

Last week, members of Congress gathered at GRAMMYs on the Hill and joined Wynonna Judd on stage for a little bipartisan harmony. On that night, joining Wynonna, Martina McBride, Keith Urban, John Popper and other well-known artists, were more than 100 other members of the Recording Academy family. Songwriters, performers, producers and engineers. Less famous, but just as accomplished. They came to Washington to sound the alarm – that if we don’t change music licensing laws, the generation that follows them will not be able to sustain a career making the music the world loves and needs.

It’s part of a growing, but not surprising trend of creator activism. Three years ago The Recording Academy, announced a new program for Academy members to meet with their legislators in their home districts. That year, a hundred people signed up for GRAMMYs in my District. The next year, more than a thousand. And in 2016, the number surpassed 2,000, the largest movement for music advocacy in American history.

Is it any wonder? With so many critical issues facing music makers, creators are more knowledgeable and engaged than ever. What do they seek? Simply fair market pay, for all music creators, across all platforms.

Duke Fakir from The Four Tops joined us for GRAMMYs on the Hill. Should Duke be denied royalties for “Can’t Help Myself (Sugar Pie Honey Bunch)” simply because it was recorded before 1972?

Peter Asher attended. Is it fair that a producer who created more than 100 albums, from 1970’s Sweet Baby James to last year’s GRAMMY-nominated Bright Star, has no rights in the law as a producer?

GRAMMY nominee John Beasely came to D.C. for GRAMMYs on the Hill. Should composers and songwriters like John be treated as monopolies and regulated by antitrust enforcers to protect companies like Google?

Rick Nielsen, guitarist for Cheap Trick, also joined us. Cheap Trick has been a staple of radio for 40 years. This iconic band is part of what has made corporate radio a $16 billion dollar business. However, lacking a performance royalty in the U.S., Cheap Trick’s total performance earnings for their radio plays over the past decades has come to exactly zero. Should the very bands that drive radio be denied the royalties they deserve?

The answer to all of these questions is a resounding no. It’s time for change.

A community of creators under The Recording Academy banner is making its voice heard louder than ever. 

There are nearly 40 GRAMMY awards owned by the music creators that came to Washington D.C., many of them newly won just two months ago. They received our industry’s highest honor, the musical equivalent of winning the Super Bowl, but they didn’t go Disneyworld, they went to Washington - to fight for the future of music.

Blues icon Bobby Rush, William Bell, Dimitry Lipay, Contemporary Christian artists Natalie Grant and Bernie Herms, Latin artists Jesse and Joy, Nashville songwriter Rory Feek, are just part of the one hundred strong group of music creators talking to policy makers, seeking to ensure a vibrant music community for years to come.

Realistically, we know that Congress is wrestling with many important issues that may seem a higher priority than music and copyright. But consider this: at the end of each contentious day on Capitol Hill, what do legislators do? They head to their cars and homes -- and whether to inspire, relax, or just get fired up, they listen to music. Music drives our culture and our economy. And without it, we would not be able to advance as a nation.

So today, tomorrow, and beyond, our creators will take pride in what they do and will continue to ask Congress for nothing more than a basic American principle: when Americans work, Americans should get paid. 

Spotify Logo

Spotify Logo

 

Photo: Chesnot/Getty Images

News

Does Spotify's New "Discovery Mode" Resemble Anti-Creator "Payola?"

Facebook Twitter Email
At a time when the music ecosystem is struggling, Spotify is encouraging creators to decrease their already low royalty rate in exchange for additional promotion
Advocacy
Nov 11, 2020 - 4:21 pm

At a time when more are calling for reinventing steaming rates to better artist payout, Spotify is launching a new mode that invokes past concerns with payola infractions within the music community. Spotify's "Discovery Mode" offers creators the opportunity to increase their public visibility in exchange for a diminished royalty rate, which currently fluctuates between $.003 and $.005 per stream reportedly.

Payola, the practice of requiring compensation in return for airplay by broadcasters, decreases the diversity of music included in airplay and provides an unfair barrier of entry for smaller artists. While current antiquated payola legislation does not extend to digital streaming services, Spotify's anti-creator behavior of enticing struggling creators to further reduce their already low royalty rate in order to stay competitive with their music community peers is reminiscent of past payola practices. 

"Spotify's promotional royalty rate is yet another example of how the company avoids paying music creators their fair share," said Daryl Friedman, the Recording Academy’s Chief Advocacy Officer. "It's a predatory tool that can be likened to payola, and it's troubling that Spotify introduced this at a time when music creators are seeing their livelihoods devastated amidst the pandemic. With Spotify payouts already so low, I don't see how this experiment will benefit any musicians who are already struggling to earn a living wage."

The Recording Academy has a history combatting these anti-creator "pay-for-play" practices. In 2007, the Recording Academy penned a letter to then-Federal Communications Chairman (FCC) Chairman Kevin Martin in support of the FCC's pending payola investigations into Big Radio. Without commenting on individual investigations, the Academy urged the FCC to continue oversight to "ensure that future conduct in violation of the payola laws will not occur" and to intervene if any such conduct occurs.

At a time when COVID-19 has resulted in closed venues and canceled tours, causing a tremendous amount of financial distress for the entire music ecosystem, artists and creators need fairer compensation. Yet instead of providing a lifeline, Spotify's flirtation with "pay-for-play" will further damage the financial health of small-time music creators who want to remain competitive on their platform.

Spotify & Other Streaming Giants Are Fighting Songwriter Royalty Increases…Still

GRAMMYs

Photo: Andras Polonyi / EyeEm

News

Recording Academy Champions The HITS Act, Which Supports Independent Music Makers’ Recovery

Facebook Twitter Email
The Help Independent Tracks Succeed Act lets creators fully expense production costs for new music up-front to stimulate reopening of the music economy
Advocacy
Jul 31, 2020 - 7:00 am

Today, the Recording Academy joined Rep. Linda T. Sánchez (D-Calif.) and Rep. Ron Estes (R-Kansas) to announce the Help Independent Tracks Succeed (HITS) Act, which allows an individual to fully expense for tax purposes the cost of new studio recordings on their taxes, up to $150,000, within the same year of production.

Music creators are among the American workers hardest hit by the coronavirus pandemic. Tours are cancelled, venues, bars, and restaurants are shuttered, and recording studios remain closed. As independent artists and producers look for a new path forward, the HITS Act creates a foothold for recovery. Without it, the costs of making new music may be prohibitive to creators following months of lost income.

"The Recording Academy is proud to have worked alongside Reps. Sánchez and Estes to develop the key provisions in the HITS Act," said Harvey Mason jr., Chair and Interim President/CEO of the Recording Academy. "The HITS Act will make a meaningful impact and help ease the financial burden for thousands of independent creators getting back on track, eager to share their creativity with the world. It will inspire new music and create opportunities for many of the vulnerable professionals in our community to persevere during these uncertain times."

Currently, individual recording artists and record producers are required to amortize production expenses for tax purposes over the economic life of a sound recording, typically 3-4 years. The HITS Act allows artists and producers to choose to deduct 100 percent of their production expenses for records created in the United States in the year such expenses are incurred, in the same manner that qualified film and television production expenses are allowed to be expensed. Expenses can include studio equipment, studio rental fees, staff costs, electricity, studio musicians, and much more.

"We are living through tough times and nothing helps you escape like turning on your favorite album," said Rep. Sánchez. "Similar to many families and workers across the country, the coronavirus has also had an enormous impact on music makers. Gigs have been canceled, studios shuttered, and creative writing sessions postponed. I'm proud to introduce the HITS Act with Rep. Estes. Our bill will provide small, independent creators with a bit of help getting back to work, making the music we turn to in good times and bad."

"Music is a powerful language that connects people of varying generations, backgrounds and experiences," said Rep. Estes. "The men and women who make music — either through writing, singing, playing or producing — deserve to have the same tax benefits as artists in the film, television and live theater industries. The HITS Act is sound legislation that supports our creative communities throughout the United States and encourages music makers of all sizes and notoriety."

Many music creators watched their incomes disappear as the pandemic ushered in a new normal of closures and cancellations. The median income for a professional musician is less than $25,000 a year, and independent music professionals will be among the last to return to work as the nation gradually reopens. As the only organization representing all music creators, the Recording Academy will continue to support government assistance that will help music creators navigate their way through this unprecedented time and subsequent recovery period.

Academy Endorses New Legislation To Support Creators, Venues & Small Music Businesses

GRAMMYs

Photo Illustration: Omar Marques/SOPA Images/LightRocket via Getty Images

 

News

Spotify & Other Streaming Giants Are Fighting Songwriter Royalty Increases… Still

Facebook Twitter Email
The Copyright Royalty Board finally set a fair pay increase for songwriters– so why are the major streaming platforms appealing
Advocacy
Mar 11, 2020 - 3:24 pm

Making a living as a songwriter is, well, not easy. While the industry's transition toward streaming has opened a lot of doors for music makers, it's also made scraping together enough income to sustain a career very challenging. With that in mind, the Copyright Royalty Board (CRB) has done something to help out, giving songwriters a solid win with their recent royalty rate increases. All good news, right? Not so fast…

The same streaming giants who have built the new music model on the backs of music creators – Spotify, Pandora, Google and Amazon – are continuing to fight the CRB's royalty rate increases, attempting to leverage their massive corporate heft to avoid paying songwriters what the CRB has determined is fair.

On Tuesday, March 10, the above-mentioned four streaming platforms’ (with Apple Music notably absent as the current No. 2 largest streaming service globally) appeal of the CRB’s 2018 decision to increase songwriter royalty rates by 44 percent was heard before the DC Circuit Court. This appeal has reignited the fight over royalty rates with songwriters seeking only to uphold the CRB's decision and these streaming services hoping to dodge the pay increase.

Many songwriters are watching this story closely, as Spotify, Pandora, Google and Amazon are essentially suing to not have to pay songwriters the rates determined by the CRB. Despite pleas and pressure, the platforms have not backed down from their appeal. From here it will be up to the DC Circuit Court to determine an outcome.

Read More: CRB Appeal: Inside The Battle For Fair Streaming Rates

Since the appeal was filed in 2019, songwriters have rallied around the issue and raised their voices in other impactful ways. Last April, a group that included GRAMMY winners Nile Rodgers, Kenneth “Babyface” Edmonds and Greg Kurstin wrote an open letter on the matter directed specifically at Spotify. In it, they call out the top streaming platform for its disingenuous relations with songwriters and asking Spotify to, "Do the right thing and drop your appeal of the Copyright Royalty Board rate determination."

Everyone can get involved to send this same message to Spotify and the other platforms. Contact the companies’ Board of Directors to let them know you stand with the songwriters who write the music they sell. It's time to pay these professionals the fair rate determined by the CRB, not continue to line streaming platforms pockets with more cash.

Stand With Songwriters: Contact Spotify's Board Of Directors

GRAMMYs

Photo: Anton Novoderezhkin\TASS via Getty Images

News

Recording Academy Testifies To Protect NEA Funding

Facebook Twitter Email
The music professional membership organization outlines the many benefits even a modest increase in funding would yield
Nate Hertweck
Advocacy
Mar 6, 2020 - 1:39 pm

"Through supporting music and the arts, the NEA empowers local communities, improves student development, and advances cultural achievements." –Daryl P. Friedman, Recording Academy Chief Industry, Government & Member Relations Officer, Conversations In Advocacy #75

Each year, music and arts funding via the National Endowment for the Arts (NEA) is set as part of the nation's budgeting process. Once again this year, the White House released a budget proposing to zero out funding for the NEA and close the agency. Fortunately, there remains bipartisan support in Congress to disregard the Administration’s budget and keep the NEA open.

The Recording Academy is doing its part, with Chief Industry, Government, and Member Relations Officer Daryl Friedman submitting testimony to the House of Representatives Appropriations Committee’s Subcommittee on Interior, Environment, and Related Agencies on March 5 requesting an increase in funding for the NEA for FY21.

"The Recording Academy is proud to support the NEA and the important work it has done to enrich American culture. It remains an integral part of the cultural bedrock of the United States, working to bring music and the arts to towns and communities across the country," Friedman said in his testimony. "As such, the Recording Academy urges the subcommittee to fund the NEA at $170 million for Fiscal Year 2021 so that it can fulfill its mission in the coming year."

The Academy has long supported and fought for an increase in funding for the NEA.  In the recently passed budget for FY20, the NEA saw a $7.25 million increase in appropriated funds, which pushed total funding past $162 million. While this funding increase, which was the largest in the past decade, will allow the NEA to fund more diverse opportunities for arts participation in 2020, the Academy is requesting additional funds to be allocated to this program in order to expand its current grant-making ability and help deliver an increase in arts participation across all 50 states.

"Considering that NEA grants yield more than $500 million in matching support—leveraging outside funds at a ratio of 9:1—it is financially one of the smartest investments the government can commit to," said Friedman.

The value of music and arts funding becomes ever-more clear, even as the threats of losing it continue to return each year. Fortunately, everyone can do something to help. Contact your Members of Congress today to let them know you stand with the Recording Academy's position to increase NEA funding. As they say, someday your kids will thank you.

No Radio, No Problem: How BTS Scored A No. 1 Hit Without Radio's Help