Broadcasters and Recording Industry May Be Near Deal
It appears the recording industry may get their way after all. They are working on a proposal with the National Association of Broadcasters that would see radio stations start to pay for the music they play on air. For over 70 years, broadcasters have not had to pay for what they played on air. It was seen as a promotion for the recording industry. Now, with recorded music revenues falling dramatically over the previous decade, the industry is trying to come up with new ways of generating income.
Part of the broadcasters plan is to get Congress to force all cell phone makers to include an FM transmitter in each phone. Naturally, the cell phone makers oppose this. Gary Shapiro, of the Consumer Electronics Association, said, “We are completely, inalterably opposed to this.” He went on to say, “Rather than adapt to the digital marketplace, NAB and RIAA act like buggy-whip industries that refuse to innovate and seek to impose penalties on those that do.”
I have to agree with Mr. Shapiro. It seems absurd to require new and innovative devices to carry an outdated and antiquated technology. In this age of constant innovation, legacy businesses are lashing out at those who threaten their way of life. Hopefully Congress won’t pacify these backward thinking people. The only way we can be a world leader is to be forward thinking.