I never really understood why stations never had to pay performance rights, though partly agree that the stations are essentially providing free advertising for the bands by playing their music. I haven't really been following the issue, nor do I particularly have any opinions about it, but I got curious, so here's the most recent update I could find. From Inside Radio, below are the excerpts:
Radio’s Fight Against Performance Royalties Clears 200 Backers In House.
Nov 6, 2025
"The radio industry has had tremendous success .. . fight to keep AM radio in the dashboard. But the other big battle .. pushing back against proposals to change federal copyright law to require stations pay royalties for on-air music use. This week, the Local Radio Freedom Act (H.Con.Res.12/S.Con.Res.8), which would block a radio performance royalty, surpassed 200 supporters in the House. ...
While it is nonbinding, the resolution serves as a counterpoint to the proposed American Music Fairness Act (S. 326/HR 861) that was reintroduced in the House and Senate in January. If passed, it would require broadcast radio stations to pay royalties for music use. .., ..
The bill does carve out lower rates for smaller operators. Stations with less than $1.5 million in annual revenue and whose parent companies have less than $10 million in annual revenue overall would qualify for a license that would allow them to play unlimited music for less than $500 per year. The bill would also provide special rates for college and non-commercial stations.
But NAB says ... “Imposing a new performance fee would jeopardize this important medium and hurt the very listeners and artists radio supports,”
While the House version nears a majority, Senate support remains solid with 26 Senators on the record as opposing performance rights fees on over-the-air radio.
The NAB has pushed the music industry to settle the decades-old dispute through a “holistic” arrangement, which would cover not only on-air royalty expenses but how much stations pay to simulcast online. But that has proven to be a difficult task. At the urging of lawmakers, the two sides have had meetings off and on through the years, but they didn’t get very far. ... ..supporters of the royalty have accused broadcasters of not negotiating in “good faith” since the NAB has never made an offer to the music industry that would result in more money for performers...."