NAB Radio Royalties Battle Intensifies as Senate Weighs New Fees

Local radio leaders warned US lawmakers this week that new NAB radio royalties could put small stations at risk. The comments came during a Senate hearing on the American Music Fairness Act. The hearing took place in Washington on Tuesday. Broadcasters urged senators to protect local news and emergency alerts. They said many stations cannot absorb new costs.The issue matters because many small stations already face thin margins. According to Reuters, radio revenue has dropped in recent years. Supporters of new royalties say artists deserve fair pay. But broadcasters say they already offer value through free promotion.

NAB Radio Royalties Debate Grows as Stations Face Higher Costs

Radio owners told senators that new fees could force cuts to local sports and public service. They said many stations serve rural areas with no other news source. They warned that new costs would hit these towns first. Many broadcasters said they may reduce staff or close stations.Industry data shows radio revenue has fallen by more than 20 percent since 2019. At the same time, the US recording industry reached record highs in 2024. Broadcasters say this shows the industry does not need more money from local radio. They said the current system works and benefits both sides.Music groups argue that artists should earn money when songs play on air. They point out that streaming platforms already pay royalties. They say radio should follow the same rules. The Senate panel said it will review the issue again in coming weeks.

Why the Radio Royalties Plan Matters for Local Communities

Local officials say radio stations help during storms and emergencies. They worry that losing stations would leave towns without fast alerts. Broadcasters also cover school events, local debates, and community issues. They say new royalties would weaken this role.Analysts told Associated Press that the debate could reshape the radio industry. They said small stations have the least room to absorb higher fees. Larger chains may survive but could cut local shows. This could leave more areas with national content only.Supporters of the current system say Congress has protected local radio before. They hope lawmakers do the same now. They said the fight is about community life, not only business costs.

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The NAB radio royalties debate will continue as senators weigh the future of local broadcasting. The next steps may decide how many small stations can keep serving their communities. The outcome will shape the next chapter of American radio.

FYI (keeping you in the loop)-

Q1: What are NAB radio royalties?

They are fees that radio stations would pay when songs play on air. Supporters say artists need fair pay. Broadcasters say the fees are too high for small stations.

Q2: Why does the American Music Fairness Act matter?

The act would change how radio pays for music. It could raise costs for thousands of stations. Many fear it will hurt local programming.

Q3: How are radio revenues trending?

Radio revenues have dropped more than 20 percent since 2019. At the same time, recording industry revenues hit record levels. This gap fuels the debate.

Q4: Who testified in the Senate hearing?

Broadcasters and music industry leaders both testified. NAB board member Henry Hinton spoke for local stations. He warned that new fees may force cuts.

Q5: How could communities be affected?

Some may lose local news and emergency alerts. Others may see fewer community programs. Broadcasters say this risk is real if costs rise.