NAB wants to see FM tuners in all cell phones
The National Association of Broadcasters (NAB), a group representing TV networks and radio stations, is expected to approve and submit a proposal to legislators that would mandate inclusion of FM radio chips in cell phones while settling a dispute between record companies and radio stations over performance royalties for songs played.
The proposal is a response to music-industry-backed proposals already submitted to Congress which are asking for higher royalty rates.
NAB has made it clear that it is opposed to currently proposed legislation that would make radio stations pay record labels for each song played over-the-air, and has instead proposed a performance payment of 0.25% and 1% of net revenues in royalties.
With the addition of adding the FM tuner mandate into proposed legislation, NAB hopes that the music industry will lower its royalty-rate demand because the FM tuner mandate will bring more potential listeners through mobile devices, allowing for more potential revenue.
“If a law requiring radio in cellphones passes, the streaming rates for simulcasts, webcasts, and other non-terrestrial music transmissions would be reduced through 2016,” the NAB said.