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

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Streaming continues to gain ground in the market share. But if radio wants to stay relevant in breaking new artists, they'll need the help of the AM-FM Act
Nate Hertweck
Advocacy
Mar 4, 2020 - 3:51 pm

Unless you live under a rock, you've probably heard that Korean pop superstars BTS are back with fresh music. Their new album Map Of The Soul: 7 is taking the music world by storm and has yielded a No. 1 hit on Billboard’s Digital Sales chart with their single, "ON."

What you might not realize, is the group has landed this hit with little to no radio play in the U.S—no small feat considering the value of AM/FM radio airplay in the calculations of the weekly charts. And it is further proof of a musical landscape that continues to shift toward streaming. Last year, streaming grew its market share by almost 25 percent in the States, passing one trillion on-demand streams in 2019, according to a BuzzAngle report.

Read More: Big Radio's Big Problems

While radio certainly hasn't disappeared, BTS' journey to the top of the U.S. charts is strong evidence that streaming has completely replaced radio in terms of breaking new artists into the mainstream. And while BTS has been an international phenomenon for several years, their latest breakthrough in America shows how indie and international artists are circumventing the Big Radio gatekeepers to find their fan base in new and impactful ways via streaming.

“This huge milestone signifies how dramatically the music industry landscape has shifted away from radio play and toward nontraditional methods of promotion and distribution," read a recent article by Vox. "And it is indie and international artists who end up most benefiting from that change.”

And benefit BTS has. "ON" also landed at No. 4 on the Billboard Hot 100, the highest chart position ever by a Korean group. Map Of The Soul: 7 sold over three million copies worldwide in only three days and topped the Billboard 200, earning their remarkable fourth consecutive No. 1 album.

Streaming's prevalence creates an avenue to success in the music industry, and artists are no longer required to rely on Big Radio to reach mainstream.

“An international band, singing mainly in a language other than English or Spanish, landing this high on the chart without the influence of mainstream radio suggests a powerful cultural change. More people are finding their way to the band independently, and traditional industry promotional methods are becoming less effective than ever,” Vox continued.

Radio's foothold on breaking new artists has slipped for several reasons, but it starts with the power structure that puts Big Radio’s interests ahead of artists. A new bill in Congress would change that. The AM-FM Act would improve these relations by giving artists, for the first time, the ability to grant consent to stations seeking to use their music—empowering artists and encouraging Big Radio to work with, not against, artists and their best interests. The bipartisan and bicameral bill would also  protect small and non-profit local stations who stand to benefit from more indie and diverse performers. These are the same artist who are thriving on streaming services, proof there is demand for their music. And if indie and international artists aren't supported by radio, how can broadcasters expect to keep up with the dynamic dynamo streaming has become?

Learn more about the AM-FM Act and other policy affecting music creators on the Recording Academy's simple and informative issues and policy page and contact your Members of Congress today and urge them support local radio stations and fix the system by which artists of all genres, size and nationality are able to control the use of their work

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Photo: Taylor Weidman/Getty Images

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Big Radio Shows Their True Colors During, You Guessed It, More Small-Market Downsizing

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Recent layoffs by iHeart Radio and a brand new high-dollar HQ underscore the hypocrisy in the National Associations of Broadcasters stance on local radio
Nate Hertweck
Advocacy
Jan 17, 2020 - 4:32 pm

"'Definitely a move away from the live and local,' says one source. 'I just don't think you can have a market of this size without any local talent – if you want good quality radio, anyway.'" –Conversations In Advocacy #73

Big radio broadcasters and their Washington, D.C. trade association the National Association of Broadcasters (NAB) like to claim that they’re committed to protecting the little guy, the small local radio station. But every day we see more news that radio stations are turning to technology and automation instead of local radio to adjust to the landscape changes.

For example, on Jan. 14, an iHeart Media employee, who was laid off as part of the company's downsizing efforts, stated that the company is focusing, "On their app and podcasting and not as much on local markets and terrestrial."

And there are many stories of radio mainstays being let go due to iHeart Media’s reconfiguration.

Take the six people from a Des Moines station, including their morning and sports on-air talent, or the many other sports broadcasters in smaller markets who were among those who were let go by iHeartMedia. But wait, there's more. Consider the firing of "Donuts" from B95 and Hanna from Z100 in the Chippewa Valley, which triggered a change.com petition calling for iHeart to reverse their decision.

These firings are indicative of the larger trend by big radio to replace the very little guy NAB claims to protect, with their actions in Washington further highlighting where their loyalties lie. As the NAB prepares for its big-dollar move—they’ve announced that they will be relocating to a $62.76 million new headquarters in D.C— the trade lobby recently came out against the Ask Musicians for Music (AM-FM) Act, a new bill that would actually protect small and local broadcasters, while also benefitting musicians.  

It’s time for radio to start worrying more about those who create their content instead of their stockholders and executives. If not, it may be your local station staff who are next to get let go.

Let Your Representatives Know You Stand In Support Of Music Creators' Rights

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Recording Academy's Harvey Mason jr. Testifies On AM-FM Act & Stimulus

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The music industry membership organization's Chair & Interim CEO took the (virtual) stand today on behalf of music makers
Nate Hertweck
Advocacy
May 27, 2020 - 3:54 pm

With so many people and professions affected by the coronavirus crisis, now is the time for music industry leaders to speak up and advocate for their community. With this in mind, Recording Academy Chair & Interim CEO Harvey Mason jr. testified today in front of the Senate Judiciary Intellectual Property Subcommittee on the scope of music rights in sound recordings, the dire need for the United States to catch up with other free countries by passing the Ask Musicians for Music (AM-FM) Act, and the importance of supporting music creators in the next phase of COVID-19 relief stimulus.

"Any future relief package should get people back to work, not give industries unfair advantages," said Mason jr. "Unfortunately, musicians will not be able to get back to live performances soon, so the next stimulus should ensure they get paid fairly for their music that has been a lifeline for our fellow citizens. As the Section 512 study showed last week, there are many ways Congress can do more to help the music community, such as including the AM-FM Act in the next COVID-19 bill."

The AM-FM Act, a bipartisan and bicameral bill introduced by Sen. Marsha Blackburn (R-Tenn.) and House Judiciary Chairman Jerry Nadler (D-N.Y.), would establish a performance right for sound recordings broadcast by terrestrial radio, ending a decades-long loophole that has enabled AM/FM radio broadcasters to use the music of hard-working performers and producers without obtaining any form of permission or paying any compensation. Under the AM-FM Act, artists, producers, and copyright owners would be able to negotiate fair market rates with broadcasters in exchange for permission for it to be aired.

“Radio is the only business in America that can use someone else’s intellectual property without permission or compensation. Fixing this copyright anomaly should be a priority of the Senate Judiciary Committee," Mason jr. said.

This blind spot in American policy also underscores the glaring discrepancy between the U.S. and other countries around the world, including the U.K. and Canada, who pay performance rights royalties to the musicians and artists' whose music is played on terrestrial radio.

"The United States of America: the one country in the world that should be a leader in free market transactions, a leader in protecting intellectual property, and a leader in assuring fair pay for one’s work. Yet sadly, we are the one country that does not recognize a performance right for sound recordings," said Mason jr.

With millions of music makers living in uncertainty,  Congress holds a valuable opportunity in its hands to ensure they receive fair support alongside other small business and finally institute the long-overdue performance rights for sound recordings that would pay creators what they deserve for their work.

Ironically, the National Association of Broadcasters (NAB) has continued to fight against the AM-FM Act and performance rights for sound recordings even though the broadcasters themselves enjoy the very same rights to permission and compensation they are denying creators. Mason jr. explained:

"Just two weeks ago the NAB CEO, Gordon Smith, told his members: 'We don’t know how long this pandemic will last, or what the lasting effects of it might be on our economy. But there is one thing I do know… broadcasters endure.' I wish I could tell our members the same thing. In this crisis, many workers are sadly not getting paid because their work is not needed at this time. But on radio, musicians are not getting paid while their work is needed more than ever. The current crisis has shone a bright spotlight on this injustice. And the time to fix it is now."

During the hearing, Mason jr. discussed how local radio provides entertainment for the general public, which is primarily due to the efforts of music creators. For non-music content serving as “entertainment” on terrestrial radio, Mason jr. reminded the panel that stations pay those entities a fee to broadcast that content on their airwaves, specifically sporting events. Mason jr. stated that he is open to having future discussions with the NAB about these issues and requested Congressional involvement in those negotiations.  

The AM-FM Act is finally getting its due consideration by the Senate Judiciary Committee and would be a critical victory for artists’ rights. You can help to advance the bill by contacting your lawmakers and ask for their support.

Take Action To Help Music Creators In Need Of COVID-19 Relief

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Photo: Fairfax Media/Getty Images

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Big Radio Aims To Take Small Business Aid Under New Stimulus Bill

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Believe it or not, Big Radio could use funds and protections for small businesses to increase their staggering corporate wealth
Nate Hertweck
Advocacy
May 20, 2020 - 3:54 pm

Big Radio is trying to enrich their organizations by draining federal stimulus funds meant for struggling small businesses that are trying to survive during this unprecedented and unpredictable pandemic.  

On May 15, the House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. While the $3 trillion stimulus bill includes multiple creator-friendly provisions – such as another round of direct payments and extending the Federal Pandemic Unemployment Compensation (FPUC) benefit of $600 through the end of the year – the bill would offer major radio stations direct financial assistance.

"There is a difference between supporting vital local news outlets and billion dollar broadcast conglomerates, especially given that these enormous [terrestrial] radio conglomerates refuse to compensate recording artists for using their music."

Under the legislation, Big Radio and broadcasting companies would be eligible for Paycheck Protection Program loans, which were originally intended to keep small businesses afloat during this tough economic time. Rather than saving funds to help your favorite mom-and-pop restaurant keep their lights on, Big Radio will instead take the limited federal relief money and increase their staggering corporate wealth if this bill is enacted into law.

While many believe that this House-passed legislation is ‘dead on arrival’ in the Senate, the worry remains that the upper chamber could adopt a similar negotiating proposal to aid Big Radio.

Along with A2iM, the Future of Music Coalition, and SoundExchange, the Recording Academy released a statement condemning this provision in the HEROES Act, stating, “there is a difference between supporting vital local news outlets and billion dollar broadcast conglomerates, especially given that these enormous radio conglomerates refuse to compensate recording artists for using their music, in contrast with satellite radio and streaming services that do pay.”

The statement concludes with the sober recommendation: "With so many people in need at this time, let's keep the focus where it should be: small businesses and workers, not on big broadcasters."

Instead of bailing out Big Radio, Congress should focus on passing relief for the true small businesses—including the smallest of small: artists, songwriters, producers, and creators struggling with the pandemic.  One such step would be passing the AM-FM Act, a bipartisan and bicameral bill that would require radio stations to ask permission and negotiate a fair market rate before playing a creator’s music. You can add your voice to the chorus of support for the AM-FM Act by contacting your Members of Congress today and urging them to support this necessary legislation. 

Take Action To Help Music Creators In Need Of COVID-19 Relief

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Photo: Ollie Millington/Redferms

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Shining A Light On The Murky Live Event Ticketing Marketplace

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A House Energy & Commerce Committee hearing addresses lack of transparency in the concert ticket industry, providing consumer protections, and clarifying pricing and fees
Nate Hertweck
Advocacy
Feb 26, 2020 - 3:39 pm

For music fans, buying tickets to see their favorite artist live can be an exciting feeling, but it can also be clouded with confusion, frustration and even danger.

Today in Washington, the House Energy and Commerce’s Subcommittee on Oversight and Investigations held a hearing titled “In the Dark: Lack of Transparency in the Live Event Ticketing Industry” to look at how to make the system safer for consumers. Fortunately, it's in the best interest of everyone involved in the live event ticket marketplace – save the scalpers – to finally put the fan first.

In that spirit, the hearing featured six witnesses from prominent players in the live event ticketing marketplace: Amy Howe (President & COO, Ticketmaster), Bryan Perez (CEO, AXS), Stephanie Burns (VP and General Counsel, StubHub), Ryan Fitts (VP of Legal Affairs, Vivid Seats), Don Vaccaro (Co-Founder and CEO, TicketNetwork), and Joe Choti (President & CEO, Tickets.com).

A wide range of ticketing issues were covered, including disclosing hidden fees, policing so-called "white label" websites, decentralizing consolidated market power, secondary market regulations and more. The online marketplace was a $9 billion business in 2017, according to Chairwoman Diana DeGette (D-Colo.). The year before, in 2016, the Better Online Ticket Sales (BOTS) Act was signed into law to make improvements to the overall marketplace, a piece of legislation that received many mentions and references as it pertains to the current state of the marketplace during the hearing. The Recording Academy played a pivotal role in the development and passage of the BOTS Act.

For Ticketmaster's part, Howe discussed how the company has banned the sale of speculative ticketing, supported an industry-wide move towards all-in pricing, and blocks over 30 billion bot purchase attempts per month. Similarly, AXS's Perez talked about how their fees are determined by the client instead of the marketplace and also voiced support for all-in pricing starting in the primary market, not just in the secondary market.

Resale giant StubHub's Burns focused on the company's consumer-friendly policy of reimbursing or replacing fraudulent tickets sold on their platform. However, unlike Ticketmaster, StubHub is seeking to increase the transferability of tickets. This issue underscores the challenge of policing "white label" sites, resale websites that employ deceptive marketing practices, like using the names and logos of venues to look like official event venue websites.

Fitts, Vivid Seats' representative, stated their stance against transferability restrictions which allow large companies in the primary sales market, such as Ticketmaster, to control the price and availability of tickets as opposed to empowering fans to resell their purchased property. He drew the lines between limited transferability of tickets and the rise of fraudulent websites. Some artists, however, use transferability restrictions to ensure that tickets are sold to fans at face value instead of being resold on the secondary market at a much higher price that makes seeing a favorite artist unattainable. Vaccaro, of TicketNetwork, used his time to address how deceptive pre-sales and hidden tickets create a false sense of scarcity and how dynamic price changes in high traffic periods overcharge consumers.

Read More: Building A Safer Music Marketplace

The hearing comes after the Committee launched an investigation into the live event ticket marketplace to expose potential unfair or deceptive practices. And, as noted in Chairwoman DeGette’s opening statement, lawmakers plan to hold a subsequent legislative hearing on the “Better Oversight of Secondary Sales and Accountability in Concert Ticketing (BOSS) Act,” which was reintroduced in 2019. Furthermore, a 2018 report conducted by the U.S. Government Accountability Office (GAO), and a 2019 Federal Trade Commission workshop show that the government is actively examining ticketing practices, and considering efforts to bring  transparency and consumer protections to the marketplace.

The BOSS Act recently made headlines as long-time ticketing warriors Pearl Jam shared some criticism of the proposed legislation. The artists’ role in the ticket marketplace should not be overlooked by the government, as everyone holds an interest in making the system more transparent, accountable, and ultimately more fair for the fans.

Learn more from the Recording Academy about current policies and issues affecting music creators