MUMBAI: The mudslinging between the radio and music industries over the royalty issue continues
The Copyright Board that stepped in to solve the long festering issue hasn’t helped much, allege players
The next board hearing is lined up for 14 December
The radio industry is complaining that the music industry is lengthening the legal procedure by asking irrelevant questions while cross examining the radio industry witnesses. Till now, only a few radio industry witnesses have been cross examined and about nine to ten witnesses are to take the stand. The copyright board is yet to cross examine six witnesses from the music industry
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A source present at the last board hearing on 24 August mentions that only one radio witness was cross examined in the last hearing, a process which continued for three days till 26 August. The copyright board is allegedly unhappy with the slow procedure adopted by the music industry
To speed up the hearings, the radio industry has written to the Information and Broadcasting ministry and HRD ministry regarding the slow procedure of the copyright board hearings. Confirms Association of Radio Operators for India (AROI) head Music Royalty Committee and Radio Mantra director Rahul Gupta, In the last hearing, the same witness was questioned irrelevantly for three days and the radio industry felt the need for the ministry to intervene to speed up the proceedings. Further, as hearings are slated only for three days every quarter, attaining resolution on royalty seems unlikely in the near future….
Indian Music Industry president Vijay Lazarus snaps back saying, The music industry is in fact supporting the progress of the copyright board hearing and have come forward to offer a fair price for usage of our content. The music industry is also looking ahead to resolve the disparity between the radio and the music industry over music royalty….
Gupta states that as Phase 3 is going to help the radio industry to penetrate in Category C and category D cities, getting the royalty issue resolved has become a priority as the stations are bleeding due to royalty. The AROI has already informed the Ministry of Information and Broadcasting (I&B) that it may not participate in the third phase of FM radio expansion even if the government announces it. At least 500 new stations, all in small towns, will come up in phase III.
Inspite of the royalty issue, there are stations in small towns who have managed to attain breakeven in two years since inception. Gupta retorts, Some stations have managed to break even because the market dynamics, potential of the market, competition differs from region to region. And some stations attaining break even doesn’t imply that the industry is garnering revenues…. In the interiors, as much as 70 per cent of revenues is diverted towards music royalty, he says.
The radio industry is looking ahead to a revenue share model which would demark royalties to be paid by stations belonging to different categories.
With the next hearing lined up in December, both warring industries have pinned their hopes on a solution by the Copyright Board that will benefit both sides.
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