Broadcasters Spent $20M Lobbying Washington In 2018.

Story by Inside Radio

From music licensing and royalties to how many stations a company can own, there’s a growing list of fundamental issues under consideration in Washington that will set the course for broadcasters in the coming years. It’s why the dollars continue to flow, as radio and television advocates continue to be one of the most powerful lobbying forces at work inside the Beltway.

The National Association of Broadcasters continued to lead the charge in 2018, spending $14.16 million on lobbying efforts last year, according to an Inside Radio review of disclosure filings. That represented an 8% decline compared to what the NAB allocated to lobbying in 2017. The reports also show the NAB reduced its lobbying spending by 23% from 2016 to 2018.

“NAB’s overall spending on advocacy fluctuates year to year, depending on needs, issues and priorities,” executive VP Dennis Wharton explains. “We allocate these resources strategically and efficiently in an effort to succeed in Washington while delivering the best value to our members.”

The NAB spent $3.29 million during the fourth quarter on a litany of issues that impact radio and television stations, spanning from Congress to the Federal Communications Commission and other federal agencies. They included not only the threatened performance royalty and other music copyright issues that remain high on radio’s watch list of Washington threats, but also issues related to broadcast ownership rules, pirate radio, tower regulations, the future use of C-band spectrum, and several proposals targeting political advertising.

Big Tech, Big Dollars

Even as the NAB remains one of the largest spenders on lobbying, in recent years the tech industry has eclipsed broadcasters. Google alone spent $21 million on Washington arm-twisting last year, a 17% increase from a year earlier. Facebook allocated $12.6 million, Apple spent $6.6 million, and Twitter shelled out $1.1 million. The extra scrutiny tech companies now face is expected to increase those figures in 2019.

Yet the NAB isn’t working alone. Operating alongside the trade group are lobbyists deployed by some of radio’s largest group owners. Filings show several broadcasters, including iHeartMedia, Hubbard Radio, Urban One, and Salem spent more than $5.3 million combined advocating on behalf of the industry in Washington.

It’s not just private companies knocking on doors either. National Public Radio was among the largest spenders in radio. Disclosure filings indicate NPR spent $869,000 last year on selling policymakers on public radio’s viewpoints – many of which overlap with commercial operators.

Meantime the National Religious Broadcasters increased its lobbying expenses 40% last year although its budget was a still-modest $29,351. The NRB traditionally puts much of its lobbying efforts into free speech and religious freedom issues, but it also expanded that last year to include such things as advocating on behalf of Brett Kavanaugh’s nomination to the U.S. Supreme Court.

The streaming radio and music services have also continued to make their voices heard. Federal disclosure filings show Pandora spent $990,000 last year, a 32% jump from the prior year. Similar to broadcast radio, Pandora’s top lobbying issues were related to copyright reform and music licensing issues. Spotify also advocated on behalf of streaming music services, spending $960,000, a 9% year-to-year drop.

The lone satellite radio player once again spent far less than its digital rivals. Federal disclosures show SiriusXM Radio spent $220,000 during 2019 on outside lobbying firms. The satcaster’s controlling shareholder, Liberty Media, spent an additional $160,000 on topics including pre-1972 royalty payments and telemarketing laws that directly impact SiriusXM’s operations.

Music Industry Spent Big In 2018

While broadcasters tempered their lobbying spending somewhat last year, the music industry’s efforts to secure passage of sweeping copyright reform legislation led to some of the biggest totals seen in years. The music biz spent more than $17 million combined to advocate on behalf of the Music Modernization Act. The bill, which President Trump signed into law in October, will also give broadcasters a way to ensure the consent decrees that govern ASCAP and BMI music licensing aren’t summarily dissolved without a new structure being put into place.

Leading the list was the Recording Industry Association of America, which boosted its lobbying spending by 14% compared to a year earlier. Disclosure filings show the RIAA spent more than $5.6 million last year fighting not just for the passage of the Music Modernization Act but also continuing to pressure lawmakers to force AM/FM station owners to pay royalties for over-the-air music use.

The RIAA also had several record company allies working alongside it, some of which boosted their lobbying investment. That included recording conglomerates Universal Music Group, which spent $3.16 million, and Sony Music Entertainment, which spent $1.65 million.

Several other music industry groups were also busy in Washington last year. The National Music Publishers Association spent a record $4.38 million, while The Recording Academy —the organizer of the Grammy awards—spent $758,000. The list also includes pro-radio royalty forces at SoundExchange, which spent $1.25 million. SoundExchange’s spending is likely a sore spot for many radio broadcasters since some of those dollars were raised from radio stations which pay royalties to the digital collections agent for their station webcasts.

Gearing Up For The Next Fight

With the Dept. of Justice considering changes to the consent decrees governing how music is licensed, filings show the big performance rights organizations were also active: BMI spent $470,000, ASCAP invested $440,000, SESAC spent $120,000 and Global Music Rights threw down $80,000. The PROs would like to see the DOJ make revisions to the consent decrees that were last overhauled in the mid-1960s. The radio industry has agreed that some modernization may be needed, but it has joined forces with other music users like retailers, restaurants and bars to argue the agreements are still needed to ensure they have access to music.

The coming year is likely to see new battles over a performance royalty for AM/FM airplay and jockeying with the DOJ over what role the ASCAP and BMI consent decrees will play in radio’s future. Broadcasters have already secured the reintroduction of a bill that would hike pirate radio fines to as much as $2 million.