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The Future of Audio Hearing Committee on Energy And THE FUTURE OF AUDIO HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY OF THE COMMITTEE ON ENERGY AND COMMERCE HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION JUNE 6, 2012 Serial No. 112–148 ( Printed for the use of the Committee on Energy and Commerce energycommerce.house.gov U.S. GOVERNMENT PRINTING OFFICE 80–145 PDF WASHINGTON : 2014 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 15:04 Mar 10, 2014 Jkt 037690 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 F:\114BA6~1\112-14~1 WAYNE COMMITTEE ON ENERGY AND COMMERCE FRED UPTON, Michigan Chairman JOE BARTON, Texas HENRY A. WAXMAN, California Chairman Emeritus Ranking Member CLIFF STEARNS, Florida JOHN D. DINGELL, Michigan ED WHITFIELD, Kentucky Chairman Emeritus JOHN SHIMKUS, Illinois EDWARD J. MARKEY, Massachusetts JOSEPH R. PITTS, Pennsylvania EDOLPHUS TOWNS, New York MARY BONO MACK, California FRANK PALLONE, JR., New Jersey GREG WALDEN, Oregon BOBBY L. RUSH, Illinois LEE TERRY, Nebraska ANNA G. ESHOO, California MIKE ROGERS, Michigan ELIOT L. ENGEL, New York SUE WILKINS MYRICK, North Carolina GENE GREEN, Texas Vice Chairman DIANA DEGETTE, Colorado JOHN SULLIVAN, Oklahoma LOIS CAPPS, California TIM MURPHY, Pennsylvania MICHAEL F. DOYLE, Pennsylvania MICHAEL C. BURGESS, Texas JANICE D. SCHAKOWSKY, Illinois MARSHA BLACKBURN, Tennessee CHARLES A. GONZALEZ, Texas BRIAN P. BILBRAY, California TAMMY BALDWIN, Wisconsin CHARLES F. BASS, New Hampshire MIKE ROSS, Arkansas PHIL GINGREY, Georgia JIM MATHESON, Utah STEVE SCALISE, Louisiana G.K. BUTTERFIELD, North Carolina ROBERT E. LATTA, Ohio JOHN BARROW, Georgia CATHY MCMORRIS RODGERS, Washington DORIS O. MATSUI, California GREGG HARPER, Mississippi DONNA M. CHRISTENSEN, Virgin Islands LEONARD LANCE, New Jersey KATHY CASTOR, Florida BILL CASSIDY, Louisiana JOHN P. SARBANES, Maryland BRETT GUTHRIE, Kentucky PETE OLSON, Texas DAVID B. MCKINLEY, West Virginia CORY GARDNER, Colorado MIKE POMPEO, Kansas ADAM KINZINGER, Illinois H. MORGAN GRIFFITH, Virginia SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY GREG WALDEN, Oregon Chairman LEE TERRY, Nebraska ANNA G. ESHOO, California Vice Chairman Ranking Member CLIFF STEARNS, Florida EDWARD J. MARKEY, Massachusetts JOHN SHIMKUS, Illinois MICHAEL F. DOYLE, Pennsylvania MARY BONO MACK, California DORIS O. MATSUI, California MIKE ROGERS, Michigan JOHN BARROW, Georgia MARSHA BLACKBURN, Tennessee DONNA M. CHRISTENSEN, Virgin Islands BRIAN P. BILBRAY, California EDOLPHUS TOWNS, New York CHARLES F. BASS, New Hampshire FRANK PALLONE, JR., New Jersey PHIL GINGREY, Georgia BOBBY L. RUSH, Illinois STEVE SCALISE, Louisiana DIANA DEGETTE, Colorado ROBERT E. LATTA, Ohio JOHN D. DINGELL, Michigan (ex officio) BRETT GUTHRIE, Kentucky HENRY A. WAXMAN, California (ex officio) ADAM KINZINGER, Illinois JOE BARTON, Texas FRED UPTON, Michigan (ex officio) (II) VerDate Aug 31 2005 15:04 Mar 10, 2014 Jkt 037690 PO 00000 Frm 00002 Fmt 0486 Sfmt 5904 F:\114BA6~1\112-14~1 WAYNE CONTENTS Page Hon. Greg Walden, a Representative in Congress from the State of Oregon, opening statement ................................................................................................ 1 Prepared statement .......................................................................................... 3 Hon. Cliff Stearns, a Representative in Congress from the State of Florida, opening statement ................................................................................................ 4 Hon. Lee Terry, a Representative in Congress from the State of Nebraska, opening statement ................................................................................................ 4 Hon. Anna G. Eshoo, a Representative in Congress from the State of Cali- fornia, opening statement .................................................................................... 4 Hon. Fred Upton, a Representative in Congress from the State of Michigan, opening statement ................................................................................................ 6 Prepared statement .......................................................................................... 7 Hon. Marsha Blackburn, a Representative in Congress from the State of Tennessee, opening statement ............................................................................ 8 Hon. Henry A. Waxman, a Representative in Congress from the State of California, opening statement ............................................................................. 8 Hon. Michael F. Doyle, a Representative in Congress from the Commonwealth of Pennsylvania, opening statement ................................................................... 9 WITNESSES Ben Allison, Bassist, Composer, and Governor, New York Chapter, The Re- cording Academy .................................................................................................. 10 Prepared statement .......................................................................................... 13 Answers to submitted questions ...................................................................... 171 David M. Israelite, President and Chief Executive Officer, National Music Publishers’ Association ........................................................................................ 18 Prepared statement .......................................................................................... 20 Answers to submitted questions ...................................................................... 172 Cary Sherman, Chairman and Chief Executive Officer, Recording Industry Association of America ......................................................................................... 26 Prepared statement .......................................................................................... 28 Answers to submitted questions ...................................................................... 173 Jeff Smulyan, Chairman, President, and Chief Executive Officer, Emmis Communications ................................................................................................... 58 Prepared statement .......................................................................................... 60 Answers to submitted questions ...................................................................... 174 Steven Newberry, President and Chief Executive Officer, Commonwealth Broadcasting Corp., on Behalf of the National Association of Broadcasters ... 71 Prepared statement .......................................................................................... 73 Answers to submitted questions ...................................................................... 175 Tim Westergren, Chief Strategy Officer and Founder, Pandora ......................... 88 Prepared statement .......................................................................................... 90 Answers to submitted questions ...................................................................... 177 Christopher Guttman-McCabe, Vice President, Regulatory Affairs, CTIA–The Wireless Association ............................................................................................ 94 Prepared statement .......................................................................................... 96 Answers to submitted questions ...................................................................... 178 Gary Shapiro, President and Chief Executive Officer, Consumer Electronics Association ............................................................................................................ 101 Prepared statement .......................................................................................... 104 Answers to submitted questions ...................................................................... 180 (III) VerDate Aug 31 2005 15:04 Mar 10, 2014 Jkt 037690 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 F:\114BA6~1\112-14~1 WAYNE IV Page SUBMITTED MATERIAL Statement, dated February 3, 2012, of National Association of Broadcasters, ‘‘NAB Statement on Voluntary Inclusion of FM Chips in Cellphones,’’ sub- mitted by Mr. Walden .......................................................................................... 112 Report, undated, of McLaughlin & Associates and Penn Schoen Berland, ‘‘MyWireless.org 2012 Annual Consumer Survey Data,’’ submitted by Ms. Eshoo ..................................................................................................................... 115 Report, dated July 8, 2011, of Gigom, ‘‘Mobile broadband usage by activ- ity,’’submitted by Ms. Eshoo ................................................................................ 117 Statement, dated June 6, 2012, of David Lowery, submitted by Mrs. Blackburn ............................................................................................................. 127 VerDate Aug 31 2005 15:04 Mar 10, 2014 Jkt 037690 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 F:\114BA6~1\112-14~1 WAYNE THE FUTURE OF AUDIO WEDNESDAY, JUNE 6, 2012 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON COMMUNICATIONS AND TECHNOLOGY, COMMITTEE ON ENERGY AND COMMERCE, Washington, DC. The subcommittee met, pursuant to notice, at 10:23 a.m., in room 2123, Rayburn House Office Building, Hon. Greg Walden (chair- man of the subcommittee) presiding. Members present: Representatives Walden, Terry, Stearns, Shimkus, Bono Mack,
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