Fall 2010 issue of Horizons

Media & Entertainment – continued

This act is seen by many as a major potential detriment to an already struggling radio industry. Overall, the radio industry points out that songwriters are already being paid through fees to performance rights organizations such as ASCAP and BMI. The reality is that although performers (as opposed to songwriters) are not being paid, they are in effect receiving free advertising through airplay to promote their music which they can monetize. The industry sees no reason to change a model that has worked to the benefit of performing artists for more than 80 years. In addition, with more and more radio stations streaming their broadcasts over the Internet, digital music rights have become a

RubinBrown Partner Larry Rubin and Sam Bush, senior vice president and CFO of Saga Communications in Grosse Point Farms, Michigan, together at the Media Finance Focus 2010 Conference. Sam also serves on the Media Financial Management Association board of directors and is the immediate past chairman.

Specifically, broadcasters who streamline online must file playlist reports of use with the copyright office before or within 45 days of starting airplay. They must also conform with the “sound performance complement,” which was instituted to limit music piracy. 2. The New Reality for Newspapers While it was no surprise to hear about the decline of newspapers in today’s digital age, it was stunning to hear that newspaper advertising revenue has dropped 41 percent in three years and spending on reporters and editors is down 30 percent since 2000.

prevalent issue. Broadcasters are required to pay copyright royalties, file playlist reports, and conform to requirements.

The general consensus of many of the conference speakers was that even when the economy improves, the newspaper business will continue to suffer because it operates under an antiquated business model. It is

Raise Your Expectations

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