*HEADDESK* - RIAA demands MANDATORY FM radio recievers in new cell phones.

[John Shaw]

http://arstechnica.com/tech-policy/news/2010/08/radio-riaa-mandatory-fm-radio-in-cell-phones-is-the-future.ars?utm_source=rss&utm_medium=rss&utm_campaign=rss

Music labels and radio broadcasters can't agree on much, including whether radio should be forced to turn over hundreds of millions of dollars a year to pay for the music it plays. But the two sides can agree on this: Congress should mandate that FM radio receivers be built into cell phones, PDAs, and other portable electronics.

The Consumer Electronics Association, whose members build the devices that would be affected by such a directive, is incandescent with rage. "The backroom scheme of the [National Association of Broadcasters] and RIAA to have Congress mandate broadcast radios in portable devices, including mobile phones, is the height of absurdity," thundered CEA president Gary Shapiro. Such a move is "not in our national interest."

"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."

But the music and radio industries say it's a consumer-focused proposition, one that would provide "more music choices."
A grand bargain

Autumn, "that season of mists and mellow fruitfulness," approaches, and as Congress returns soon from recess, it will find its autumn agenda packed with supplicants who want the government to put its stamp on private negotiations. Google and Verizon famously released their own legislative framework on network neutrality earlier this month, and the broadcasters and music labels are nearing completion on a similar framework of their own.

In this case, the framework concerns public performance rights. Radio broadcasters and music labels are at each other's throats over the question of whether radio ought to pay performance rights to labels or artists when it plays their music on the air (currently, only songwriters get paid, not artists or labels). A bill percolating in Congress, the Performance Rights Act, would rationalize performance rights in the US; satellite radio and webcasters currently pay full performance fees to labels or artists, but radio does not, thanks to a longstanding exemption in copyright law.

The bill has already passed out of committee in both the House and Senate, but it is vigorously opposed by the broadcasters; they argue that radio provides valuable promotion to artists and shouldn't have to pay. Congress tried to force two of the main lobbying groups, the National Association of Broadcasters and musicFIRST (RIAA is a member), to hash out a solution last November. None was forthcoming, but talks have continued since then and are now close to completion.

The two sides hope to strike a grand bargain: radio would agree to pay around $100 million a year (less than it feared), but in return it would get access to a larger market through the mandated FM radio chips in portable devices.

"As regards the chip, this is a key issue for the radio industry," musicFIRST told Ars today. "musicFIRST, too, likes FM chips in cell phones, PDAs, etc. It gives consumers access to more music choices."

As the contours of this deal came into sight last week, the consumer electronics companies saw the prospect of a new government mandate, and one that was transparently about propping up a particular (and aging) business model.

"The performance royalty legislation voted out of the Senate Judiciary Committee does not include this onerous and backward-looking radio requirement," said the CEA's Shapiro, and he wants to keep it that way.

The deal has not been finalized, we're told. When it is, the two sides still need to convince Congress to go along, but they're hopeful something can be wrapped up late this year or early in 2011.

Update: NAB stresses to us that no deal has been finalized. "However, if there is a decision made by the Board of Directors to go forward and seek legislation, including radio-enabled chips in mobile devices in possible legislation seems to us to be a reasonable idea," says NAB's Dennis Wharton.

As for the CEA criticism, "It's no surprise that CEA opposes this, since trade associations generally always oppose new rules. CEA also opposed DTV tuners in digital television sets; the FCC decided that having DTV tuners in TV sets was a good thing, and passed a rule that gave consumers access to local TV stations on DTV sets.

"We would argue that having radio capability on cell phones and other mobile devices would be a great thing, particularly from a public safety perspective. There are few if any technologies that match the reliability of broadcast radio in terms of getting lifeline information to the masses."

[mrapplecastle]

I havent listened to fm or am radio in over 3 years, not voluntarily. The radio stations around houston make me vomit.

[Bill Brasky]

I havent listened to fm or am radio in over 3 years, not voluntarily. The radio stations around houston make me vomit.

I have a FM tuner in my MP3 player.  Two fuckin' years, I been carrying it around, jammin' to my shit.  Never once did I activate the FM radio. 

[slayerboy]

A Big Fat Thanks To Record Execs

Thank you for fighting the good fight against Internet MP3 file-swapping. Because of you, millions of kids will stop wasting time listening to new music and seeking out new bands. No more spreading the word to complete strangers about your artists. No more harmful exposure to thousands of bands via Internet radio either. With any luck they won't talk about music at all. You probably knew you'd make millions by embracing the technology. After all, the kids swapping were like ten times more likely to buy CD's, making your cause all the more admirable. It must have cost a bundle in future revenue, but don't worry -- computers are just af ad anyway, and the Internet is just plain stupid.

-- Rolling Stone

That being said, if I do listen to music, it's via Slacker or Pandora, very rarely my personal music collection on my phone.  I mainly listen to podcasts now.  This coming from someone who had 500-600 CD's 10 years ago.  I sold/trashed the ones I couldn't sell, downloaded some music and decided it wasn't worth getting sued over and gave up on music.  I love music, it was a huge part of my life. I'd just rather listen to someone jam in person on the street now or see a band in concert if it's cheap enough.  That's music and soul.  Not the shit that the RIAA has been spewing out at record pace the last 20 years or so.

[YixilTesiphon]

I havent listened to fm or am radio in over 3 years, not voluntarily. The radio stations around houston make me vomit.

They're pretty awful, but 94.5 usually plays alright music.

[Cognitive Dissident]

If I wanted to choose radio, I'd use one.  They're just pissed because they chased me away and since getting an iPod, I haven't turned on any of the radios I have...oh, wait, I use the one in my car--to play my iPod, which I connect to a device that broadcasts into its antenna!

It's kinda funny, because I remember the shitstorm Steve Jobs had to deal with for refusing to put a radio in the iPod.  He said few listen to the radio now, and no one will soon.

[ForumTroll]

The only people who listen to musid radio anymore seem to be Mexicans. Well, they keep taking over channels here with their music so it's what I assume.

[TimeLady Victorious]

I listen to the radio a lot, but mostly shortwave and the classical music stations here in Detroit. Well, the stations I can get in at least. AM sometimes too, if I can get in the right stations at night. There are a couple great all-night talk programs out there, especially the one all-night on WGN. (WCCO used to have a good one too, but either I can't get the station in anymore or they replaced it with bland crap.)

I might be interested in getting a Zune HD sometime along the line, but that would be only because I'm sort of a radio geek . . . but right now when I'm on the go I have my CC Radio SWP in my pcoket listening to either shortwave or something else that the RIAA probably doesn't give a shit about.

[anarchir]

The only people who listen to musid radio anymore seem to be Mexicans. Well, they keep taking over channels here with their music so it's what I assume.

At my work we have 3 rooms that have music. The dining area has satellite radio (or a cable tv channel that plays music), in the kitchen we have our mp3's/cd/or very rarely the radio to classic rock, and the Mexican dishwashers always listen to CD's. Always.

[mrapplecastle]

I havent listened to fm or am radio in over 3 years, not voluntarily. The radio stations around houston make me vomit.

They're pretty awful, but 94.5 usually plays alright music.

94.5 especially