Chairman Tauzin

Prepared Witness Testimony

The House Committee on Energy and Commerce

W.J. "Billy" Tauzin, Chairman

Link to Committee Tip Line:  Fight Waste, Fraud and Abuse
   

 

 

Recording Industry Marketing Practices: A Check-Up

Subcommittee on Telecommunications and the Internet
October 1, 2002
10:00 AM
2123 Rayburn House Office Building 

 

 
 

Ms. Hilary Rosen
Chairman & CEO
Recording Industry Association of America
1330 Connecticut Avenue, NW
Suite 300
Washington, DC, 20036

Introduction 

Mr. Chairman, Mr. Markey, and members of the Subcommittee, thank you for the opportunity to appear before you today. 

I am Hilary Rosen, Chairman and CEO of the Recording Industry Association of America, an association that represents over 600 record companies. 

 I welcome this opportunity to provide you with the details of our industry’s efforts since this Subcommittee’s review last July. 

There are two points that I would like to raise at the outset: (1) the unwavering commitment of our industry to the success of the Parental Advisory Program; and (2) my concern that the recording industry’s “marketing practices” have not been evaluated by the FTC in a manner that fairly takes into account the specific nature of music and mass advertising that includes to more than one demographic group at the same time. 

The Recording Industry Takes Its Responsibility Seriously  

First, I would like to underscore that the recording industry takes it responsibility to parents and consumers very seriously.  The Parental Advisory has been in existence for seventeen years.  We created this program, have guided its development, and are proud of its impact.  Moreover, we value the respect and trust that we have developed with parents over the years. 

I have met personally with each of the major record companies to review the implementation of our guidelines and we have been meeting with our retail partners as well.  There is a commitment at every level in the recording industry to the continued success of the Parental Advisory Program.  

We Produce and Market A Diverse Range of Sounds 

The recording industry releases over 36,000 albums each year.    The vast majority of these titles contain no explicit content.   In fact, I would like to note that despite the emphasis at these hearings on recordings with explicit content, they comprise a relatively small proportion of our industry’s output.  In an average retail store with 110,000 titles, about 500 will carry the Parental Advisory logo. That’s less than one-half of one percent of that store’s total inventory.  Moreover, the overwhelming majority - - if not all - - of the titles that are explicit are also available in an edited version.  Unlike any other entertainment industry, music lovers have a choice.  If a movie is rated “R”, a consumer does not have the choice to see a “PG” version in the theatre or to purchase it in the store.  When considering advertising of an album, the availability of an edited version should be taken into account.  The industry is not advertising an explicit album, it is advertising an album available in two versions. 

Let me now turn to the significant steps we have taken over the last year to ensure the continued success of the Parental Advisory Program. 

The Industry Continues to Strengthen Its Guidelines 

An important aspect of our commitment to the Program is making sure that it evolves to meet the changing needs of retailers and parents without compromising the twin principles that guide it: (1) alerting parents to explicit content; and (2) protecting the First Amendment rights of artists to free expression. 

We recently implemented changes to the guidelines that accomplish this goal.  The RIAA has published revised guidelines that became effective on April 1, 2002.   The guidelines include three new provisions:

  • The implementation of an “Edited Version” Label on packaging:  If an edited version of an album designated with the Parental Advisory Label is released, it should include an “Edited Version” Label plainly displayed either on the front of the album (on the cellophane wrapper or on the album cover itself), or on the top spine of the CD.  The Edited Version Label is a notice to consumers that an album has been modified from the original, and does not include all of the same content contained in the Labeled version.

  • Adoption of an “Edited Version Also Available” Label in advertising:  If an “edited” version of a recording is available for sale, consumer print advertising may contain language indicating that fact.  This will be accomplished with the wording “Edited Version Also Available” placed near the specific album or sound recording that has been designated with the Label.    

  • The extension of the existing guidelines for print advertising to radio and television promotions:  In cases where the decision has been made to place a Parental Advisory Label on a recording, all consumer print, radio, and television advertising (collectively “consumer advertising”) for that recording shall communicate the presence of explicit content.

The Recording Industry is Adhering to Its Guidelines  

In February 2001, the FTC issued a report on the industry’s implementation of its guidelines and gave us a failing grade.  I came before this Committee and indicated that we deserved that failing grade.  I also stated that future reviews would demonstrate progress.  We have kept our word and have made significant progress. 

  • All of the major record companies have issued internal policy guidelines and have appointed a senior level employee to ensure full compliance with the Parental Advisory Program, including the new provisions. 

  • According to the Commission’s February 2001 study: only 8% of print ads in reviewed magazines displayed the PAL.  According to our review of the October and November issues of the same magazines reviewed by the FTC that number is now nearly 100 percent.  In fact, there was only one add that did not carry the Logo, and the album in that add is available in an edited version. 

  • 100 percent of the PAL’s were clearly legible. 

  • Additionally, parental controls have been included on many online subscription services with an “exclude explicit content” option check box: “Check here if you would like to exclude tracks from albums that contain a parental advisory logo. A description of the parental advisory program can be found at http://www.parentalguide.org  

We Have Continued our Educational Outreach Efforts 

Parents overwhelmingly recognize and support the Parental Advisory Program.  All of the recent surveys on this issue have confirmed that fact.  We have not, however, rested on our laurels.  We continue our efforts to raise public awareness about the Parental Advisory Program.   

  • The RIAA designed and distributes an informational brochure in English and Spanish for parents and caregivers describing: 

  • The evolution of the Parental Advisory label, 

  • How determinations for its application are made, 

  • And the meaning of the label with suggestions for links to community-service based organizations. 

  •  The RIAA and its members have worked to ensure  “Edited Version Also Available” has been quickly integrated into the consumer lexicon. 

  • The RIAA have worked on creative methods of distributing the PAL PSA, including in video magazines. 

  • The RIAA continues to partner with the National Association of Recording Merchandisers (NARM) on many fronts, including updating all parental advisory label displays in retail stores.  

  • Additionally, we have established a partnership with the Association for Independent Music (AFIM) to further advance our educational outreach efforts.   

I am proud of the significant strides we have made in the last year.  We are committed to continuing to work hard to ensure the Parental Advisory Program remains successful and a priority for our industry.  

Informational Rating Systems Should Reflect the Nature of Their Respective Industries 

Our labeling system is often compared to the ratings systems in place for the television, motion picture and videogame industries.  While our industries work together to bring information about our systems to parents through the www.parentalguide.org website, our systems are very different.  And for good reason.  Each system is designed and has evolved to reflect the media to which it applies. 

We think that it would be unwise and improper to assume that a record label knows what kind of music and lyrical content is “suitable” for whom.  Like books or poetry, different listeners will take away different meaning from musical recordings and their lyrics, making a “one-size-fits-all” determination particularly unsuitable.  Record labels should not be in the business of making assumptions about the values or maturity levels of their customers.  The purpose of the advisory label is to provide a clear “heads-up” to all consumers that a sound recording contains explicit content.  Books have no label or rating, even those that contain explicit content and are marketed directly to children.  Why?  Because words are particularly subject to interpretation and imagination, and most feel that labeling books is a bad idea.  Lyrics likewise are susceptible to varying interpretations.  Words can have different meanings depending on who is hearing them.  We offer alternatives and trust that consumers will the choice that is best for them. 

Moreover, advertising an album in a publication where a significant percentage of those who see it are over 17 years of age should not be regarded as intentionally “targeting children.”  Advertising an album available in two versions to a mixed audience is far different than targeting kids with explicit material.  Yet it is described in such a manner for purposes of government review.  

Conclusion - - No Regulation is Necessary 

In summary, the recording industry has in place a system that works - one that reflects the nature of the art form; is being strengthened and promoted; and is overwhelming supported by America’s parents.

To its credit the Federal Trade Commission has recognized that the First Amendment precludes government intervention in this area and that “vigilant self-regulation is the best approach to ensuring that parents are provided with adequate information to guide their children’s exposure to entertainment media with violent content.” 

We have proven over the last year that self-regulation is the way to progress.  In the last year, we have seen at the state level that efforts to regulate content are fraught with danger.  Some states have even imposed criminal penalties for failing to adhere to voluntary standards.  Rather than improving parent’s access to information, such statutes create a disincentive to adopting voluntary standards.  By essentially punishing those who adopt voluntary guidelines, the legislation would have the unintentional result of discouraging participation in the successful Parental Advisory Program. Fortunately, these statutes have been challenged in the Courts and ruled unconstitutional. 

Without regulation we have strengthened our guidelines and have seen tremendous improvement in the areas explored by the FTC.  Without regulation, one of our members has expanded on our voluntary program and now provides content descriptors.  This experiment by BMG will give us some insight into whether content descriptors will work with music and whether consumers will find it helpful or confusing.         

What is clear from the debate on the state and national level is that at bottom there are some people who simply don’t like some types of music.  That is fine.  You have the option of listening to and purchasing what you do like.  What we don’t have the option of doing is silencing some voices based on personal prejudices.  Taking away angry music will not take away angry feelings.  Society and life is more complicated than that.   We are willing to do our part by providing parents and consumers generally with information and choices in the music.  They must also accept their role in the process. 

In the end, I am proud that the RIAA’s Parental Advisory Program and the balance we have struck in respecting the free expression of artists while providing information and choice to consumers. 

Thank you.

 
 

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