Monty Tayloe

Nearly every legislator who spoke at Wednesday’s House Judiciary Committee hearing on the American Music Fairness Act (HR-4130) appeared sympathetic to compensating performers for radio play of their songs, though many also emphasized protections for broadcasters. Many gave credence to both sides. The most aggressive questions went to NAB CEO Curtis LeGeyt. “The government has the responsibility to protect the property rights of its citizens,” Rep. Tom McClintock, R-Calif., told LeGeyt, noting broadcasters require compensation when their own content is used by others.

A House Judiciary Committee hearing Wednesday on the American Music Fairness Act (see 2109200050) will include testimony that broadcasters are falsely “crying poor” on compensating performers for radio play, and that musician groups failed to come to the negotiating table with radio stations, said the two sides in dueling previews of the testimony on AMFA. HR-4130 would charge radio stations a performance royalty fee for the artists, in the form of yearly payments based on station size and profitability. “NAB put forward serious proposal after serious proposal” on compensating artists but “received no serious counteroffer,” said President Curtis LeGeyt in an interview Tuesday. LeGeyt will testify, along with singer Gloria Estefan, American Federation of Musicians (AFM) International Executive Officer Dave Pomeroy and others. LeGeyt said it's “disappointing” to broadcasters to be relitigating the issue before legislators. In a virtual news briefing Tuesday, musicFIRST Coalition Chairman Joe Crowley slammed NAB for not producing a broadcaster to address legislators, and condemned iHeart Media CEO Bob Pittman for not testifying. MusicFIRST is made up of several music industry entities, including AFM, SoundExchange and RIAA. Pittman is “unwilling to flip open his laptop” and “defend the indefensible,” Crowley said. IHeart declined to comment. Large radio groups make billions of dollars from the “unpaid labor” of artists, and the AMFA would charge lower rates to 63% of radio stations -- only the largest radio groups would face significant fees, Crowley said. “We are not an industry rolling in revenue,” LeGeyt said. Even the largest groups maintain community stations that require resources, he said. In addition to iHeart, he said the bill would affect middle-size radio groups such as Beasley and Hubbard. The AMFA would draw a bright line for stations with revenue of over $1.5 million that would cause fees to shoot up. A “performance tax” is “not a workable business model,” LeGeyt said. “NAB loves to call any attempt to ensure fair pay for artists a performance tax,” Crowley said. “This legislation doesn’t direct money to the government, it directs money to performers.” Former Federal Emergency Management Agency Administrator Craig Fugate and the National Association of Black Owned Broadcasters wrote the committee this week in support of NAB.

FCC Chairwoman Jessica Rosenworcel changed the leadership of several FCC bureaus, said a release Monday. Industry officials said the change doesn’t appear to be an omen of big shifts at the agency -- most of the new heads are longtime bureau staff who were already in the leadership of their departments. They said the staff changes are an expected outgrowth of Rosenworcel’s becoming permanent chair late last year. "The timing is based on the Chairwoman’s new term and appointment as permanent Chair," said an FCC spokesperson. The spokesperson confirmed that the former chiefs remain employed by the agency. Until Monday's announcement, Rosenworcel had retained several bureau heads from the administration of former Chairman Ajit Pai. Holly Saurer, a longtime Media Bureau staffer who had been Rosenworcel’s acting media adviser, will become MB chief, replacing Michelle Carey. Michele Ellison, a longtime FCC Deputy General Counsel, who was general counsel in an acting capacity under Rosenworcel, will take the job on a permanent basis. Former Public Safety Bureau Deputy Chief Debra Jordan will replace Lisa Fowlkes in that bureau’s top post. Alejandro Roark, former executive director for Latino civil rights group HTTP, is the new chief of the Consumer and Governmental Affairs Bureau, replacing Patrick Webre. Prior to HTTP, Roark worked on tech policy for the League of United Latin American Citizens. Loyaan Egal, a former deputy chief in DOJ's National Security Division Foreign Investment Review Section who worked on Team Telecom matters, will become Enforcement Bureau acting chief, replacing Chief Rosemary Harold. Before DOJ, Egal was in the Enforcement Bureau, where he established and led the then-USF Strike Force. “I’d also like to thank Michelle Carey, Lisa Fowlkes, Rosemary Harold, and Patrick Webre, for their public service as they transition to new roles across the agency,” Rosenworcel said. See our news bulletin also.

FCC Chairwoman Jessica Rosenworcel changed the leadership of several FCC bureaus Monday. She had until Monday retained numerous department heads from the administration of previous FCC Chair Ajit Pai.

The FCC is statutorily required to handle the 2018 and 2022 quadrennial reviews separately, said Media Bureau staff at an FCBA virtual panel Thursday. The law says the FCC “shall” review broadcast ownership rules every four years, and that means “this is something we must do,” said MB Attorney-Adviser William Durdach, saying the law doesn’t allow the agency to “roll a quad into another quad.” Stakeholders speculated the agency could seek to skip the 2018 QR (see 2112200018).

Broadcast engineers and equipment manufacturers commenting in docket 21-422 all endorsed an FCC proposal to allow the use of computer models to verify the patterns for FM directional antennas. The one exception was antenna manufacturer ERI (Electronics Research Inc). “You’re going to have antennas that don’t work the way they’re represented,” said ERI CEO Tom Silliman in an interview Friday. Said engineering firm Meintel Sgrignoli, echoing most commenters: “It is our experience that various computer modeling software programs do an excellent job of predicting accurate antenna pattern data."

ATSC 3.0's backers need to focus on attracting consumers, advertisers and consumer tech OEMs to the new technology, said executives from E.W. Scripps, Sinclair, Nexstar, and BitPath in a virtual panel Thursday. “A lot of these OEMs need to understand in a much deeper way what’s in it for them,” said Kerry Oslund, Scripps vice president-strategy and business development. If broadcasters don’t ensure that ATSC 3.0 early adopters see “a tangible difference,” 3.0 “will be 3DTV all over again.”

An FCC draft order on largely administrative changes to political advertising rules is considered noncontroversial and could be approved unanimously even before the agency’s Jan. 27 open meeting, said broadcast and FCC officials in interviews. The item’s docket, 21-293, shows no activity since October. The NPRM version was unanimously approved before commissioners’ August meeting (see 2108040058).

NAB and other supporters of the Journalism Competition and Preservation Act are making a renewed push to advance the measure, despite its still-murky path to becoming law in 2022. HR-1735/S-673 would let small news outlets negotiate revenue-sharing with online platforms (see 2103100058). Sponsors are readying tweaks in a bid to quickly advance the measure out of at least the House Judiciary Committee.

The FCC Media Bureau’s announcement Tuesday that the consolidated database system (CDBS) won’t accept new filings after Wednesday (see 2201110077) surprised broadcasters and broadcast attorneys. But they told us it isn't likely to create many problems for them. Other than having to email some forms that previously would have been entered into the system, “it’s not going to be a big change,” said Dawn Sciarrino of Sciarrino and Associates.