ABSTRACT When a terrestrial radio station plays a song during its over-the-air broadcast, the artists and their record labels receive no compensation for the sound recording right. Yet radio’s digital competitors – including streaming services and satellite radio – do pay performance royalties to performers and their labels for the sound recording. Terrestrial radio’s cost-advantage is not the result of marketplace deals or competitive forces, but from a statutory preference granted to radio broadcasters. Legislation aimed at leveling the playing field has been strongly resisted by broadcasters based on the claim that radio provides a promotional effect, or free advertising, for record labels and performers. In this article, we demonstrate that any promotional effect is fully internalized in a marketplace bargain between the music and radio industries. As such, a promotional effect provides no basis for federal law to mandate the free use of music by the radio broadcast industry.

中文翻译：

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促销效果和音乐版税率的确定

摘要 当地面广播电台在空中广播期间播放歌曲时，艺术家及其唱片公司不会获得录音权的补偿。然而，广播的数字竞争对手——包括流媒体服务和卫星广播——确实向表演者及其唱片公司支付表演版税。地面广播的成本优势不是市场交易或竞争力量的结果，而是授予无线电广播公司的法定优惠。广播公司强烈反对旨在公平竞争的立法，理由是广播为唱片公司和表演者提供宣传效果或免费广告。在本文中，我们证明，任何促销效果都在音乐和广播行业之间的市场交易中完全内化。因此，促销效果没有为联邦法律规定无线电广播行业免费使用音乐提供依据。