Mandatory AM Radio Requirement Dropped from Federal Government Funding Bill
The AM in Every Vehicle Act has been excluded from the federal government's continuing resolution (CR) funding bill, following opposition from musicians and advocacy groups seeking fair compensation for artists.
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The National Association of Broadcasters' $3 million lobbying effort to include the bill failed, as artists and the musicFirst Coalition insisted on passing the American Music Fairness Act (AMFA) simultaneously. The AMFA, which has strong bipartisan support, would require radio companies to pay artists royalties for AM/FM radio plays – a standard practice in most industrialized nations except the United States.
AM radio stations currently play over 240 million songs annually without paying artist royalties. The musicFirst Coalition estimates radio companies earn more than $15 billion in ad revenue while avoiding artist compensation, making AM/FM radio the only music platform legally playing music without paying performers.
Prominent artists including David Byrne, Randy Travis, MC Lyte, Darryl "DMC" McDaniels, and Melle Mel advocated on Capitol Hill against passing the AM bill without AMFA. According to Darryl McDaniels, "This is a major win for all music artists across the country."
SoundExchange CEO Michael Huppe emphasized that Congress should not mandate radio requirements without ensuring proper artist compensation, noting that many backup vocalists and musicians must work additional jobs to survive. The decision represents a significant shift away from the broadcasting industry's historical advantages and moves toward potential fair compensation for artists through the AMFA.
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