Tech industry to RIAA, radio biz: Keep your 'legacy technology' demands away from our cellphones

The battle between recording and radio industries over performance rights royalties has moved to a new platform: your cellphone. The Consumer Electronics Assn., the trade group behind the annual CES event, has lashed out at the radio industry's push for FM radio tuners to be a government-mandated addition to mobile devices. 

"We believe that product design is the domain of innovators in the marketplace -- not the government," reads a letter signed by Gary Shapiro, CEA's president and chief executive. "As such, we will vigorously oppose any effort to force manufacturers by legislative fiat to include legacy technology in devices."

This isn't the first time the CEA has voiced opposition to the idea of FM tuners becoming a requirement for cellular devices. The concept was introduced by the National Assn. of Broadcasters earlier this year as part of its ongoing negotiations with the RIAA -- the Recording Industry Assn. of America -- over the introduction of performance rights royalties to the U.S. market. Currently, U.S. broadcasters pay only songwriters/music publishers for songs played on the air, whereas most countries also compensate the musicians and record labels.

Congress has requested the RIAA and NAB to work out a compromise after the House and Senate judiciary committees backed the Performance Rights Act, which would require broadcasters to pay royalties to musicians and labels. In agreeing for stations to pay about 1% of net revenue -- a figure that is estimated to generate an additional $100 million for the music industry -- the NAB has requested that FM tuners become mandatory in cellular devices. 

"Government mandates are unnecessary for our two industries to meet consumer demands," reads the CEA letter. "As with the nation’s transition to digital television, the advent of broadband-enabled devices affords broadcasters and manufacturers a unique opportunity to work collaboratively to ensure that consumers enjoy all the benefits of new technology."

In increasing the number of mobile phones with FM tuners, radio believes it could better compete with fast-rising streaming services such as Pandora, as well as boost its listenership and increase advertising. Such a compromise is contingent upon the U.S. government approving legislation to mandate the installation of FM tuners. The NAB, in its response last week, highlights the public safety benefits of the installation of tuners, which would ideally work if cellular networks were down during a disaster. 

"It is premature to discuss a legislated mandate related to radio chips in cellphones, since no legislation has been introduced," the NAB's executive vice president of communications, Dennis Wharton, said in a statement. "Nonetheless, the public safety benefits of having free and local radio's lifeline service in mobile devices is undeniable, a fact underscored by the disability community's recent endorsement of this technology."

Both sides have issued competing studies that claim to illustrate public support for or opposition to such a move. The NAB does have a website, Radio Rocks My Phone, advocating on behalf of the issue and listing which devices sport tuners. The NAB has cited studies that claim two-thirds of all adults ages  18 to 34 say they would listen to more radio if their mobile devices had FM tuners, while the CEA has cited surveys that argue consumers are opposed to any sort of government mandate. 

Apple recently brought a FM tuner to its Nano line of iPods, yet the iPod brand has maintained its market dominance while being largely radio-free. Microsoft's Zune, however, has carried radio capability since its introduction in 2006. 

-- Todd Martens

Photo: The FM-ready iPod Nano. Credit: EPA

Comments

[Dave9]

Wow, bleat of a dying industry. When is terrestrial radio going to realize that it's over? Due to corporate programming, bland music and irrelevant talk, it has made itself obsolete. Besides, how can a single media outlet like a radio station compete with all the music and podcasts your iPod or iPhone can hold? It can't.

[glazed donut]

corporate welfare for the well connected. they're trying to sneak this in through the backdoor by touting secondary 'public safety' benefits. why should cell phone makers, and by extension consumers, be forced to subsidize the continued existence of a dying medium?

[Steven M.]

"The NAB has cited studies that claim two-thirds of all adults ages 18 to 34 say they would listen to more radio if their mobile devices had FM tuners, while the CEA has cited surveys that argue consumers are opposed to any sort of government mandate."

Simple solution- Let the marketplace drive sales, not mandate something that people don't want. If NAB thinks that they can be successful with FM, let them partner-up with a manufacturer and put the development money where their mouth is. Next, the AM stations will want a piece of the action.

Don't burden the consumer with stuff they don't want or need. Let the free market decide. This "cram down" through government regulation and mandate is bogus!!!

[Enlightenment]

Yes, all cell phones should have FM radio plus Weather bands, because these features would be extremely important during major natural disasters. If the big one ever hits california, then likely most cell sites would go down because of severed land connections. Receive-only radio is excellent way for the entire population to receive critical information during disasters.

[John]

XM/Sirius reciever/FM/IPOD MP3 Player would be better. I would buy it in a heart beat.

[Fiamma]

Way to go CEA. Who needs a FM tuner in a cellphone anyway? And GOVERNMENT mandated? No thanks.

[gabe603]

Nobody listen to fm radio anymore, I used to listen to 94.7 the wave then they changed the format (formats in L.A. are all the same now) thanks to them I find it some great smooth jazz radio like skyfm and I will never go back.
FM/AM radio is a thing of the past, most of the phones use internet anyway, what's the point?

[julie]

Honestly, I don't get what the problem is. It'll be a new walkman.

I love radio and don't listen enough, because I'm not near a radio often enough, and don't want another annoying electronic device; I do prefer devices that multitask.

I was one of the later people to get a cellphone, and still don't have an iPod, but when I do get one, I'll certainly get one with a radio. Radio is where I am introduced to new music, ideas, and cultural waves, and has been since the sixties. It's certainly cooler than tv, and though the internet passed it as soon as the gate opened, I still love radio more. A phone radio sounds fine to me.

[The Authority]

Will it be HD radio? Will they play my playlist? Commercial free?

[David C]

a radio is very important in a natural disaster or blackout

I live in Honolulu, and in October 2006 we had an islandwide blackout for almost 20 hours in most places.

All cell phone communication was down and the radio was the only way to get information as to what was going on.

I think it's a good idea to put a radio in the cell phone for emergency use.
very important.....