[House Hearing, 107 Congress]
[From the U.S. Government Publishing Office]
RECORDING INDUSTRY MARKETING PRACTICES: A CHECK-UP
=======================================================================
HEARING
before the
SUBCOMMITTEE ON TELECOMMUNICATIONS AND THE INTERNET
of the
COMMITTEE ON ENERGY AND COMMERCE
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTH CONGRESS
SECOND SESSION
__________
OCTOBER 9, 2002
__________
Serial No. 107-132
__________
Printed for the use of the Committee on Energy and Commerce
Available via the World Wide Web: http://www.access.gpo.gov/congress/
house
__________
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COMMITTEE ON ENERGY AND COMMERCE
W.J. ``BILLY'' TAUZIN, Louisiana, Chairman
MICHAEL BILIRAKIS, Florida JOHN D. DINGELL, Michigan
JOE BARTON, Texas HENRY A. WAXMAN, California
FRED UPTON, Michigan EDWARD J. MARKEY, Massachusetts
CLIFF STEARNS, Florida RALPH M. HALL, Texas
PAUL E. GILLMOR, Ohio RICK BOUCHER, Virginia
JAMES C. GREENWOOD, Pennsylvania EDOLPHUS TOWNS, New York
CHRISTOPHER COX, California FRANK PALLONE, Jr., New Jersey
NATHAN DEAL, Georgia SHERROD BROWN, Ohio
RICHARD BURR, North Carolina BART GORDON, Tennessee
ED WHITFIELD, Kentucky PETER DEUTSCH, Florida
GREG GANSKE, Iowa BOBBY L. RUSH, Illinois
CHARLIE NORWOOD, Georgia ANNA G. ESHOO, California
BARBARA CUBIN, Wyoming BART STUPAK, Michigan
JOHN SHIMKUS, Illinois ELIOT L. ENGEL, New York
HEATHER WILSON, New Mexico TOM SAWYER, Ohio
JOHN B. SHADEGG, Arizona ALBERT R. WYNN, Maryland
CHARLES ``CHIP'' PICKERING, GENE GREEN, Texas
Mississippi KAREN McCARTHY, Missouri
VITO FOSSELLA, New York TED STRICKLAND, Ohio
ROY BLUNT, Missouri DIANA DeGETTE, Colorado
TOM DAVIS, Virginia THOMAS M. BARRETT, Wisconsin
ED BRYANT, Tennessee BILL LUTHER, Minnesota
ROBERT L. EHRLICH, Jr., Maryland LOIS CAPPS, California
STEVE BUYER, Indiana MICHAEL F. DOYLE, Pennsylvania
GEORGE RADANOVICH, California CHRISTOPHER JOHN, Louisiana
CHARLES F. BASS, New Hampshire JANE HARMAN, California
JOSEPH R. PITTS, Pennsylvania
MARY BONO, California
GREG WALDEN, Oregon
LEE TERRY, Nebraska
ERNIE FLETCHER, Kentucky
David V. Marventano, Staff Director
James D. Barnette, General Counsel
Reid P.F. Stuntz, Minority Staff Director and Chief Counsel
______
Subcommittee on Telecommunications and the Internet
FRED UPTON, Michigan, Chairman
MICHAEL BILIRAKIS, Florida EDWARD J. MARKEY, Massachusetts
JOE BARTON, Texas BART GORDON, Tennessee
CLIFF STEARNS, Florida BOBBY L. RUSH, Illinois
Vice Chairman ANNA G. ESHOO, California
PAUL E. GILLMOR, Ohio ELIOT L. ENGEL, New York
CHRISTOPHER COX, California GENE GREEN, Texas
NATHAN DEAL, Georgia KAREN McCARTHY, Missouri
BARBARA CUBIN, Wyoming BILL LUTHER, Minnesota
JOHN SHIMKUS, Illinois BART STUPAK, Michigan
HEATHER WILSON, New Mexico DIANA DeGETTE, Colorado
CHARLES ``CHIP'' PICKERING, JANE HARMAN, California
Mississippi RICK BOUCHER, Virginia
VITO FOSSELLA, New York SHERROD BROWN, Ohio
ROY BLUNT, Missouri TOM SAWYER, Ohio
TOM DAVIS, Virginia JOHN D. DINGELL, Michigan,
CHARLES F. BASS, New Hampshire (Ex Officio)
LEE TERRY, Nebraska
GREG WALDEN, Oregon
W.J. ``BILLY'' TAUZIN, Louisiana
(Ex Officio)
(ii)
C O N T E N T S
__________
Page
Testimony of:
Marmaduke, John, President and CEO, Hastings Entertainment,
Inc., on behalf of National Association of Recording
Merchandisers.............................................. 24
Peeler, C. Lee, Deputy Director, Bureau of Consumer
Protection, Federal Trade Commission....................... 8
Rich, Michael, Children's Hospital Boston/Harvard Medical
School, on behalf of American Academy of Pediatrics........ 13
Rosen, Hilary, Chairman and CEO, Recording Industry
Association of America..................................... 17
Severson, Gary, Senior Vice President and General Merchandise
Manager, Wal-Mart Stores, Inc.............................. 29
Simmons, Russell, Chairman, Hip Hop Summit Action Network.... 22
Material submitted for the record by:
EMI Recorded Music, letter dated October 29, 2002, to Hon.
W.J. ``Billy'' Tauzin...................................... 54
Evans, LaVerne, Senior Vice Presidend and General Counsel,
Legal and Business Affairs, BMG, prepared statement of..... 52
Sony Music Entertainment Inc., letter dated October 31, 2002,
to Hon. W.J. ``Billy'' Tauzin.............................. 53
Universal Music Group, letter dated October 31, 2002, to Hon.
Billy Tauzin............................................... 56
Warner Music Group, letter dated October 31, 2002, to Hon.
Billy Tauzin............................................... 55
(iii)
RECORDING INDUSTRY MARKETING PRACTICES: A CHECK-UP
----------
TUESDAY, OCTOBER 1, 2002
House of Representatives,
Committee on Energy and Commerce,
Subcommittee on Telecommunications
and the Internet,
Washington, DC.
The subcommittee met, pursuant to notice, at 10:14 a.m., in
room 2123, Rayburn House Office Building, Hon. Fred Upton
(chairman) presiding.
Members present: Representatives Upton, Shimkus, Tauzin (ex
officio), Gordon, and Harman.
Also present: Representative Towns.
Staff present: Linda Bloss-Baum, majority counsel; Will
Nordwind, majority counsel; Hollyn Kidd, legislative clerk; Jon
Tripp, deputy communications director; and Brendan Kelsay,
minority professional staff member.
Mr. Upton. Good morning, everyone.
I am going to start off by asking unanimous consent that
other members of the full committee may participate in this
subcommittee hearing and would note that we are probably a
little shorter on members than is certainly the norm. The
reason, we were supposed to have votes yesterday, and they
postponed those votes until today. So many members, as we all
traveled home to our districts and States over the weekend--a
number of folks now know they don't have to be back until 6:30
tonight instead of 6:30 yesterday. But since we had already
noticed the hearing and we had people, logistics that we needed
to follow through, we decided to go ahead with the hearing this
morning.
Today's hearing is entitled Recording Industry Marketing
Practices: A Check-Up. As I round the corner toward 50--my New
Year's resolution was to move that to 40, I would note--I would
recognize that, when it comes to your health, it pays to have
annual checkups. And while such annual doctors' visits can be
uncomfortable, they help chart your progress toward whatever
health goals your doctor has set, whether it is to be losing
weight, drinking less coffee, exercising more, whatever. It has
been a little over a year since our last visit with the
recording industry, so we thought it would be a good time to
have an annual checkup.
As the parent of two young kids, an 11-year-old and a 14-
year-old, I believe that there is no replacement for parental
supervision when it comes from protecting kids from
inappropriate content. However, parents do need the proper
tools to make decisions about what might or might not be
appropriate for their kids; and that is the very essence of
what Mr. Markey, Mr. Shimkus, and I have been doing through our
dot.kids bill, creating new domain for the Internet which would
provide parents with a place where they can send their kids and
know that they will be safe, much like the children's section
of the library.
I would note that that legislation passed in the House
overwhelmingly earlier this year, and we are waiting for Senate
action in the next, hopefully, couple days.
But looking back at the medical charts from our last
hearing, I recall closely examining the tools which the
recording industry provides parents to help them protect their
kids from inappropriate material; and one deficiency which I
noted was the lack of any specific descriptive information on
the parental advisory label, unlike the parental advisory
labels of the motion picture and video games, which provide
more specific information to parents on why something is rated
the way that it is.
At the last year's hearing I asked the RIAA whether it
planned on improving its label by making similar information
available to parents, and the answer that I think all of us
received was no. Like a good doctor, I prescribed precisely
that course of action that I thought ought to be appropriate to
the RIAA.
Since that time, one of the RIAA's biggest member
companies, BMG, has begun including more specific information
in its parental advisory label; and I look at this CD here with
exactly that label. It talks about strong language, violent
content, sexual content; and I applaud them for their corporate
responsibility and leadership in that regard.
Today, I, along with Chairman Tauzin and Congressman
Shimkus and other members of this subcommittee, are calling on
the RIAA and its other major member companies--Warner,
Universal, EMI, Sony--to hopefully get on the same song sheet
as BMG.
So I look forward to talking about this issue today, and I
thank the RIAA in advance for testifying and hopefully for
assisting the subcommittee in its efforts to learn whether or
not these other companies are going to get in tune with BMG,
and if not, why not? In fact, we hopefully will have a letter
that we will be sharing with you that you might want to send to
the other members' CEOs to respond to the inquiry that we will
put into the record.
Finally, I want to thank the FTC for its continued
diligence in providing this committee with its follow-up
reports. They are very helpful diagnostic tools used in our
checkups. The most recent report suggests that the recording
industry practices reveal a mixed picture; and while that is a
better diagnosis than the previous year, I would note that the
recording industry is not yet out of the woods.
As for myself, I believe that the First Amendment does make
it inappropriate to legislate in these matters. However, just
because you have the right to do something doesn't make it the
right thing to do. Therefore, we expect and would hope that the
recording industry continue working with Congress and this
subcommittee to do the right thing for all of America's parents
and their kids.
Now, I would yield to my friend from Tennessee, Mr. Gordon,
for an opening statement.
Mr. Gordon. Thank you, Mr. Chairman. Just to note, I have
recently passed that 50 corner that you had mentioned, and I
survived; and I think you will live to tell about it. Also.
Let me add my welcome to everyone here today. I think
Chairman Upton has done a good job in outlining the scope of
our hearing today. Unfortunately, our resident expert in
lyrics, Ed Markey, couldn't be here, and so let me add just a
quick bit of real-world thoughts to this issue.
Let me first say that my grandfather used to tell me that
the most important road in the county was the one in front of
your house. I have an 18-year-old baby girl at home, so I am
viewing the world a little differently than I used to. I guess
her two favorite things, one is the walk we take every morning
looking for dogs in the neighborhood and the other thing is
dancing to her music video. She loves to dance to that video.
Now, she is not talking yet, but I think she is--or she is
starting to talk a little bit, and I think she understands a
lot more. So in our walks every morning I have explained to her
the evils of dating, and I think I am breaking through on that
one, I hope.
Mr. Upton. Now, did you say 18 months or 18 years?
Mr. Gordon. She is 18 months.
You have got to get started on that one. And repetition
doesn't seem to bother her, but I am just about to gag on the
hokey-pokey, and it is time for us to go get another video. And
when we go get that video, I am really interested in knowing
what tools am I going to have in trying to find out what would
be a good video for her. I want to be sure that, you know, we
get the bunny hop and not Bunny--or the best of Bunny's lap
dances. So what tools am I going to have, and does the panel
think those tools are going to be adequate? And, if not, what
would you suggest would be adequate in helping me?
So, thank you, Mr. Chairman.
Mr. Upton. Thank you, Mr. Gordon.
Mr. Shimkus.
Mr. Shimkus. Thank you, Mr. Chairman, for calling this
hearing and for your and Chairman Tauzin's work on following up
on what is a very important area of our committee's
jurisdiction. This is a very important hearing, and I would
like to thank all the witnesses for coming this morning to
share your expertise on this industry. We have an excellent,
well-rounded panel.
I would like to especially thank Hilary Rosen for being
here. I understand you took the Red Eye. This can't be your
favorite topic, but--even after a little night's rest, but I am
grateful.
The origins of this hearing go back to September, 2000,
when the FTC issued a report which found that three
entertainment industries--movies, music, and video games--were
engaged in widespread marketing of explicit content to children
that was inconsistent with the warning messages on their own
label. So that is the start of why we are here today, is the
inconsistency of the label with what was actually in the
content. Further, the FTC found that advertisement for such
products frequently failed to contain rating information.
The following year, the movie and video game industry got
better marks for cleaning up their act, but the recording
industry earned another unsatisfactory grade. While the music
industry has taken a few positive steps since last year's
hearing, a lot more needs to be done.
I also praise BMG for the implementation of a new rating
system that is designed to give parents and consumers more
information about the music they buy. I hope the rest of the
record labels will do the same, because I believe more
information for parents is essential.
I would also like to take this opportunity to highlight the
continued progress the video game industry has made. According
to the FTC report, they have responded to our concerns
proactively by adopting numerous voluntary standards that
discourage the targeting of children for mature rated products
and require the disclosure of rating information in most forms
of advertising.
In addition, the industry has in place an extensive system
to enforce those standards and bring about continued
improvement in industry practices, and I think most of us would
like to see the industries do similar. Rather they do it than
we do it through legislation.
Although I sympathize that music is a much more complex
entertainment product to deal with than video games, I think
the video industry can be used as a role model for marketing
practices.
I would like to end by expressing a gentle reminder to the
record labels today: Your representatives come to my office on
a regular basis asking for assistance in fighting Internet
piracy and on other matters important to your industry's bottom
line. And don't get me wrong, I agree with your argument:
Stealing is wrong. It is immoral. But so is marketing explicit
content to our youth. Parents have a hard enough job in our
environment today without being undermined by music labels
pushing the sale of smut at the expense of our children's moral
health.
We are bringing you all up here again because we are
looking for improvement in your corporate citizenship. I don't
think I speak for only myself when I say if we don't see some
genuine effort to improve labeling and marketing practices, we
will start questioning the sincerity of other efforts.
A lot of us will say as grandparents, or I am a father of
three small boys--9, 7, and one will be 3 next week--this is a
different environment. We no longer live in the Ozzie and
Harriett days. So all we are asking for is help. And if we can
get help, we will be very grateful. If we don't get help, then
we will have to try to move on the legislative agenda.
With that, I thank you, Mr. Chairman. I yield back my time.
Mr. Upton. Thank you.
I recognize the gentleman from New York, Mr. Towns.
Welcome.
Mr. Towns. Thank you very much, Mr. Chairman, for allowing
me to participate in today's hearing on an issue that is
increasingly important to me and to a large number of my
constituents.
In addition to the other witnesses in attendance today--I
am pleased to welcome all of the witnesses, but I would
especially like to welcome Russell Simmons from New York to the
committee hearing.
I appreciate the work that members of the committee and the
FTC have done on the market of entertainment content and
products. Entertainment plays a vital role in our society and
providing consumers the information they need through labeling
to make an informed decision before purchasing a product that
contains explicit content is crucial. Parents today have a
tougher job keeping up with their children in a world where
kids seem to grow up more quickly than ever. I am heartened by
the industry's efforts at self-regulation to assist parents by
labeling content that could be considered offensive.
Due to the downturn in CD sales over the past few years, I
truly believe we should be questioning the illegal music
swapping services where teenagers download the vast majority of
music today. I am also deeply troubled at the attitude of some
who are saying that self-regulation is not working. I believe
it is up to the consumers and parents to decide what is
appropriate and inappropriate for different age groups.
The fact of the matter is that music reveals many truths
about the social and political realities facing our Nation and
our world today, particularly the African American community;
and it is simply wrong for anyone to suggest that music and the
messages contained are not suitable for America's teens
because, in some cases, it contains explicit lyrics.
Make no mistake about it, the debate is fueled largely by
those who are uncomfortable with the way African Americans
express their culture through music. When artists use explicit
language, there is a label that clearly informs consumers of
that fact. But, again, explicit language does not alone make a
recording inappropriate for teens. I do believe it is important
to consider the social value and messages contained within
these recordings. Some of the most popular songs in the civil
rights movement and the Vietnam war actually commented on our
society. I mean, we have to think about that that is where
those songs came from, out of those experiences.
If people are upset about the content flowing from the
artists' pen, then maybe what we really need to do is use our
energies to change the society that the artists are living in
and describing. Because they are describing their conditions,
they are describing what they are going through, they are
describing what they are experiencing and seeing every day of
their life.
I look forward to the testimony today from the witnesses.
And on that note, Mr. Chairman, again I thank you for allowing
me to participate, and I yield back the balance of my time.
Mr. Upton. Thank you.
I would recognize the gentlelady from California, Ms.
Harman.
Ms. Harman. Thank you, Mr. Chairman.
Sitting here, I was thinking that it is deja vu all over
again. I am looking at my notes of July 20, 2001, when we were
all sitting here facing a similar panel. Jack Valenti is not
there, but I trust he will receive my best wishes. But,
otherwise, we are having the same conversation.
I did want to say to you and Mr. Gordon that you may be
getting older, but I am not. And, you know, I can't imagine
being as old as 50. I just want you to know that.
Looking at my notes from last year, I still feel the same
way I did last year. A lot of the content out there is violent
and degrading, and I don't want to listen to it, and I don't
want my four children to listen to it. However, I continue to
feel that it is parents who need to make judgments about their
children's level of maturity, not us, and not any Federal
agency.
I want to commend BMG which has acted in the last year to
set a very good example for the industry. That is useful,
because that gives parents better tools to make judgments about
our own children.
One other thing that has changed since last year is that my
youngest daughter, whom I described last year and I described
our arguments about whether she should go to Eminem concerts,
has been to another Eminem concert and survived it. She has
also graduated high school, and she is now a--from my
observation--quite a responsible freshman in a good college.
So, kids do grow up and parents, even very busy and distracted
parents like me, try our hardest to help them grow up and help
to supervise what it is that they hear and do.
I just think, as you said yourself, Mr. Chairman, that the
First Amendment is a cornerstone of our democracy. It requires
us to permit free speech, but it also requires us to be
vigilant and responsible as we help our children understand
what speech they should hear and what speech they should not
hear.
I would just close by observing that I am sure that most of
our witnesses are parents. I know that Hilary Rosen is a parent
of two children, and I am absolutely certain that when her
children are old enough--I don't think they are yet--to listen
to recorded music, that she will exercise her responsibilities
as a parent, just as we do.
Thank you, Mr. Chairman.
Mr. Upton. Thank you very much.
[Additional statement submitted for the record follows:]
Prepared Statement of Hon. W.J. ``Billy'' Tauzin, Chairman, Committee
on Energy and Commerce
Mr. Chairman, thank you for holding this important hearing today. I
want to commend you and the Subcommittee for its ongoing leadership on
this important issue regarding how explicit content is labeled and
marketed to our nation's youth.
Fourteen months ago in this very room, we brought together
representatives of the motion picture, video games and recording
industry to discuss a recent FTC Report about the marketing of violent
material to minors. At that memorable hearing, we discovered that two
of the industries had made significant progress on rating and labeling
systems to provide consumers with information about the content of the
entertainment they bought. However, that hearing alerted us that the
recording industry had a ways to go in order to catch up to their
industry counterparts' rating systems. Members of the Committee asked
serious poignant questions of the industry about how it labels and
markets its material and some of us urged the industry to seek input
from parents and third parties. Today--a little over a year later . . .
it is time for a check up.
At that hearing last July, I urged the recording industry to simply
give parents a little more information about how violent or how
explicit the content of the music is. I asked them to listen to the
voices of American parents and give their rating and labeling system a
second look. Some parents in America fear that some of this music is
killing their values systems and their kids' innocence and they would
like to know more about the content of their entertainment before they
go out and buy it. As Members of Congress we have the privilege to help
influence many policies that affect our constituents' lives. But one
thing we can not do is directly control the music that America's kids
listen to. But we can help, and want to help, parents be the best
parents they can be . . . and we hope that is a goal that we share with
the recording industry.
The FTC has done an extraordinary job of reporting to Congress
about the ongoing progress these industries have made. I want to thank
you and I commend you, Mr. Peeler for the Commission's ongoing work in
this area. Your report suggests that, while the recording industry has
made some progress in disclosing its explicit warning labels in
advertising, that advertising still appears on television shows and in
print magazines that are popular with teens. If these marketing
practices are to continue--and I understand the business reality to do
so--then it becomes even more necessary to provide as much information,
in the clearest possible fashion, for consumers who must make the
choice about buying it. In my non-medical opinion--it appears as though
the recording industry still has a ways to go to catch up to other
industries on the objective growth charts.
I remain concerned about one particular issue that was raised last
year, and appears to be equally as prevalent today. The labeling system
on CDs will not work if consumers are not able to see it. I have here
two identical CDs purchased from the same bin, right next to one
another, at the same music retail outlet. One has the explicit warning
label completely blocked by the pricing sticker while the other has
about \2/3\ of the label covered up. According to the FTC Report, the
RIAA itself found no instances where price stickers obscured the label,
but clearly this is a problem with the current system. I look forward
to hearing more about the placement of price stickers and warning
labels from Mr. Marmaduke, with the National Association of Recording
Merchandisers and the other witnesses this morning.
We have done our best to turn up the volume for the recording
industry on this important issue. Some have heard us. BMG has announced
its new detailed system of parental warnings that includes specific
information about why the content is explicit. I am proud to join
Chairman Upton, Mr. Shimkus and what I hope will be many other Members
of the Subcommittee today in calling on the other major record labels
to add their voice to the choir and provide similar information to
consumers on their parental advisory systems.
Once again, thank you, Mr. Chairman, for holding this important
hearing, and I look forward to hearing from our witnesses and asking
them some questions.
Mr. Upton. Well, we are fortunate to have the panel that we
have today. They are a led by Mr. C. Lee Peeler--happy
birthday, sir, today, as we talk about birthdays--Deputy
Director of the Bureau of Consumer Protection for the FTC. We
have Dr. Michael Rich from Children's Hospital Boston/Harvard
Medical School, on behalf of the American Academy of
Pediatrics; Ms. Hilary Rosen, Chairman and CEO of the Recording
Industry Association of America; Mr. Russell Simmons, Chairman
of the Hip Hop Summit Action Network from New York; Mr. John
Marmaduke, President and CEO, Hastings Entertainment, on behalf
of the National Association of Recording Merchandisers; and Mr.
Gary Severson, Senior VP and General Merchandise Manager for
Wal-Mart here in Washington.
We appreciated receiving most of your testimonies in
advance. Last night, we were able to review those. We would
like to limit your remarks initially to 5 minutes, if we can,
and then we will do questions and answers.
I know Chairman Tauzin is in a very important hearing
upstairs, and he intends to be down at some point this morning
as well.
Mr. Peeler, we will begin with you. Thank you.
STATEMENTS OF C. LEE PEELER, DEPUTY DIRECTOR, BUREAU OF
CONSUMER PROTECTION, FEDERAL TRADE COMMISSION; MICHAEL RICH,
CHILDREN'S HOSPITAL BOSTON/HARVARD MEDICAL SCHOOL, ON BEHALF OF
AMERICAN ACADEMY OF PEDIATRICS; HILARY ROSEN, CHAIRMAN AND CEO,
RECORDING INDUSTRY ASSOCIATION OF AMERICA; RUSSELL SIMMONS,
CHAIRMAN, HIP HOP SUMMIT ACTION NETWORK; JOHN MARMADUKE,
PRESIDENT AND CEO, HASTINGS ENTERTAINMENT, INC., ON BEHALF OF
NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS; AND GARY
SEVERSON, SENIOR VICE PRESIDENT AND GENERAL MERCHANDISE
MANAGER, WAL-MART STORES, INC.
Mr. Peeler. Thank you, Mr. Chairman. Thank you for the
opportunity to discuss the findings of the Commission's recent
reports on the marketing of violent entertainment products to
children by the motion picture, music recording, and electronic
game industries. Each of these industries has put in place a
self-regulatory system that rates or labels products and can
help parents seeking to limit their children's exposure to
violent entertainment materials.
My written testimony today represents the views of the
Commission, while my responses to questions represent my own
views; and I would ask that my written testimony be included in
full in the record.
In September 2000, in response to requests by the President
and the Congress, the Commission issued a report on the
marketing practices of the entertainment industry for violent,
R-rated movies, mature-rated games, and explicit-content
labeled music recordings. That report found that the movie,
video game, and music industry had engaged in widespread
marketing of violent movies, video games, and music to
children.
Since September 2000, the Commission has issued three
follow-up reports. The reports examine the degree of compliance
with industry guidelines for the disclosures of rating
information and advertising and the labeling of these products.
The reports also review the placement of advertising for rated
or explicit content-labeled products. The reports document
instances where some industry members have engaged in marketing
practices that the Commission believes may undermine existing
self-regulatory systems as well as instances where individual
members have done more than their industry self-regulatory
codes require.
To follow up on the Chairman's analogy, we view our job
here very much as providing the Congress with factual
information about what is taking place. I guess we would serve
the roll of a radiologist: We will give you the information,
and you can make your decisions on it.
The Commission's most recent report was issued in June of
this year. With respect to movies and games, the report found
progress in a number of areas, including substantial compliance
with voluntary self-regulatory standards requiring the
disclosure of rating, the labeling information and advertising
and on product packaging. The Commission also found encouraging
the widespread compliance by the movie and game industries with
existing self-regulatory guidelines, limiting advertising
placements for violent R-rated and M-rated entertainment
products in media with a large percentage of teens in the
audience.
With regard to music, the Commission did find some progress
in placing the parental advisory label in advertising and on
labeling and was told by industry representatives that steps
were being taken to further improve compliance even as our
report was being prepared.
With respect to explicit content, music advertising
placements, however, the report found no change in industry
practices since the September, 2000, report. The report notes
that the music industry views its parental advisory labeling
system as not being an age-based system but rather as an
indication to parents that there is explicit content on a
certain album. Thus, the industry's self-regulatory code does
not include restrictions on ad placement.
In addition, the music industry's labeling program does not
require advertisers to indicate why the recording contains a
parental advisory. Nonetheless, as Chairman Upton just
indicated, in June of this year one industry member, BMG
Entertainment, announced that it would begin to specify on
labels and in advertising whether violent content, sexual
content, or strong language led to the decision to apply the
parental advisory label, and that they would include that same
information in advertising. It is not known whether other
industry members will adopt that step.
In sum, the Commission reports have documented progress by
the entertainment industry in complying with and improving
their own self-regulatory policies, more in the movie and games
industries and less in the music industry. Because of First
Amendment and other issues, the Commission continues to support
private sector initiatives by industry and individual companies
to address these issues. To encourage continued voluntary
compliance and to document any changes in self-regulatory
efforts, the Commission will continue to monitor the
entertainment industries' marketing and practices throughout
the next year and will issue a follow-up report to Congress.
That concludes my prepared remarks, and I would be pleased
to answer any questions you have.
[The prepared statement of C. Lee Peeler follows:]
Prepared Statement of Lee Peeler, Deputy Director, Bureau of Consumer
Protection, Federal Trade Commission
i. introduction
Mr. Chairman, I am Lee Peeler, Deputy Director of the Bureau of
Consumer Protection at the Federal Trade Commission. I thank you for
this opportunity to discuss the Commission's recent Reports on the
marketing of violent entertainment products to children by the motion
picture, music recording, and electronic game industries.1
Each of these industries has in place a self-regulatory system that
rates or labels products and that can help parents seeking to limit
their children's exposure to violent materials.
The Commission has issued four Reports on the marketing practices
of these three industries. In particular, the Reports have examined
voluntary guidelines and industry codes that govern the placement of
advertising for violent Restricted (R)-rated movies, Mature (M)-rated
games, and Explicit-Content Labeled recordings in media popular with
teens and require the disclosure of rating and labeling information in
advertising and on product packaging. The Reports document instances
where some industry members have engaged in marketing practices that
undermined the self-regulatory systems that the industries themselves
put into place, as well as instances where other individual members did
more than their industry required.
The Commission's most recent Report, issued in June of this year,
found progress in a number of areas. The Commission found substantial
compliance by movies and games marketers, and, to a far lesser extent,
by marketers of music, with voluntary, self-regulatory standards
requiring the disclosure of rating and labeling information in
advertising and product packaging. The Commission also found
encouraging widespread compliance by the movie and game industries with
existing guidelines limiting ad placements for violent R-and M-rated
entertainment products in media with a large percentage of teens in the
audience.
Nonetheless, there are continued areas of concern. Existing
voluntary guidelines for the movie and game industries still permit ad
placements in media which are very popular with large numbers of teens.
All three industries continue to place ads for rated or labeled
products on television programs that are, according to Nielsen
rankings, among the most popular shows watched by teens. And with
respect to retail sales of violent entertainment products, although the
motion picture industry has done the best job, all products remain
easily available for purchase by young teens.
Finally, despite a few initiatives during the period covered by the
Commission's last Report, special issues remain in the music industry,
particularly in its ad placement practices. Although the self-
regulatory codes of the movie and game industries place limits on the
marketing of rated products to young people, the guidelines of the
music industry do not. In the music industry's view, unlike the rating
systems of movies and games, its ``Parental Advisory'' Labeling Program
is not age-based and is not intended to indicate whether labeled music
may be inappropriate for any specific consumer age.
ii. background
The Federal Trade Commission is the federal government's principal
consumer protection agency. Congress has directed the Commission, under
the FTC Act, to take action against ``unfair or deceptive acts or
practices'' in almost all sectors of the economy and to promote
vigorous competition in the marketplace.2 With the exception
of certain industries and activities, the FTC Act provides the
Commission with broad investigative and enforcement authority over
entities engaged in, or whose business affects, commerce.3
The FTC Act also authorizes the Commission to conduct studies and
collect information, and, in the public interest, to publish Reports on
the information it obtains.4
Revelations that the teen-aged shooters at the 1999 Columbine High
School shooting had been infatuated with extremely violent movies,
music and video games led to Congressional and Presidential requests
that the Commission investigate and report back on the practices of the
movie, electronic game, and recording industries with respect to the
marketing of violent entertainment to children.
iii. the commission's studies
A. Scope of the Studies
In response to these requests, the Commission has, to date, issued
four Reports on the self-regulatory and marketing practices concerning
violent entertainment by the movie, music and video game
industries.5 In the course of preparing these Reports, the
Commission staff requested information from the principal industry
trade associations, as well as from major motion picture studios, music
recording companies, and electronic game companies.6 In
addition, the Commission staff contacted interested government
agencies, medical associations, academics, and parent and consumer
advocacy groups.7 The Commission collected information from
consumers through surveys and polls and also designed and conducted its
own surveys. In addition, the Commission conducted two mystery-shopper
surveys of retail stores and movie theaters in an attempt to see if
unaccompanied children could purchase or gain access to products
labeled as inappropriate or warranting parental guidance. Lastly, the
Commission staff reviewed Internet sites to study how they are used to
market and provide direct access to rated or labeled products.
B. Findings of the Commission's First Report
In September 2000, the Federal Trade Commission issued its first
Report entitled, Marketing Violent Entertainment to Children: A Review
of Self-Regulation and Industry Practices in the Motion Picture, Music
Recording & Electronic Game Industries.8 That Report found
that the three entertainment industries had engaged in widespread
marketing of violent movies, music, and electronic games to children
that was inconsistent with the cautionary messages of their own
parental advisories and that undermined parents' attempts to make
informed decisions about their children's exposure to violent content.
In addition, the Commission found that advertisements for such products
frequently failed to contain rating information. Finally, the
Commission reported on the results of an undercover ``mystery'' shop by
unaccompanied teens, aged 13-16, of retailers and movie theaters. The
young shoppers were able to buy M-rated electronic games and parental
advisory-labeled music recordings 85% of the time and purchase tickets
for an R-rated movie almost half (46%) of the time.9
C. Findings of the Commission's Follow-Up Reports in 2001
In response to Congressional requests, the FTC released two follow-
up Reports in 2001. Both Reports examined the entertainment industry's
practices with regard to marketing violent entertainment products to
children. The April 2001 Report 10 concentrated primarily on
advertising practices by the three industries on television, in print
media and on the Internet. For the December 2001 Report, 11
the Commission staff contacted several companies within each of the
three industries and requested marketing documents concerning violent
movies, music and electronic games. In addition, the Commission
conducted a second mystery shopper survey, like the one from the
September 2000 Report. Finally, the Commission staff continued to
monitor television, print and Internet advertising for placement and
disclosure of rating and labeling information.
These Reports noted progress by the movie and video game industries
in providing clear and conspicuous disclosure of rating information in
advertising as well as new efforts by both industries to limit
advertising for R-rated movies and M-rated games in popular teen media
venues. The music industry demonstrated mixed progress. On the plus
side, members of the music industry had begun to comply with new
industry guidelines encouraging the use of the Parental Advisory Label
in advertising. But as for ad placement practices, the music industry
continued to place advertisements for explicit-content recordings
labeled with parental advisories in popular teen media.12
The results of the Commission's second undercover shopper survey
were included in the December 2001 Report. Although electronic game
retailers showed modest improvement from the results in the
Commission's earlier undercover survey, there was no change in sales
practices in the movie theater and music retailer industries.
D. Findings of the Commission's June 2002 Report
In June of this year,13 the Commission issued its latest
Report which looked at industry advertising placements and disclosure
of rating and labeling information in television and print media. In
addition, the Commission reviewed product packaging to check whether
rating information was being disclosed clearly and conspicuously. This
Report documented further progress by the movie and games industries in
ad placement practices for R-rated movies and M-rated games, and showed
continued improvement by all three industries in disclosing rating and
labeling information in advertising and product packaging.14
Movies: In the case of movies, the most recent Report noted
significant progress in complying with industry's commitment, issued in
response to the Commission's first Report in September 2000, to not
``inappropriately, specifically target children'' in films rated R for
violence.15 The June 2002 Report found virtually no ads for
violent R-rated movies in popular teen magazines. In addition, the
movie studios widely complied with industry policies set by several
studios not to advertise R-rated movies in venues with a thirty-five
percent or more youth audience share. However, even while complying
with these policies, studios frequently advertised R-rated movies in
television shows that are very popular with teens.16
Finally, the Report showed further progress by studios in disclosing a
movie's rating and rating reasons in advertising, although some
studios' rating disclosures were still difficult to read.
Games: The Commission found widespread compliance with video game
industry self-regulatory standards limiting the advertising of M-rated
games in media where children constitute a certain percentage of the
audience (35% for television and 45% for print media). Nonetheless, the
Commission did find that some industry members did place advertisements
for M-rated games on television shows popular with teens, and in youth-
oriented game-enthusiast magazines. As the Commission noted in its
December 2001 Report, the industry's anti-targeting standards
diminish--but do not eliminate--placements in programs mainly popular
with teens. In addition, the electronic game industry continued to
prominently place rating information in most forms of game advertising.
Although some areas still could be improved (e.g., adding content
descriptors in television advertising), there is much in the game
industry's rating disclosure requirements that merits duplication by
others.
Music: With regard to music, the Commission did find some progress
in placing the Parental Advisory Label in industry advertising. The
Commission's review of explicit-content music ad placements, however,
showed virtually no change in industry practices since the September
2000 Report. Advertisements continued to be placed on television shows
and in print magazines popular with teens. The industry views its
Parental Advisory Labeling System as not being an age-based system, but
rather an indication to parents that there is explicit content on a
certain album. Thus, the industry's self-regulatory code does not
include restrictions on ad placement.
In addition, the music industry's labeling program does not require
that advertisers indicate why the recording contains a parental
advisory. Nonetheless, in June of this year, one industry member, BMG
Entertainment, announced that it will begin to specify on the label
whether violent content, sexual content or strong language led to the
decision to apply the Parental Advisory Label, and include that same
information in its advertising.17 It is not known whether
other industry members will also adopt this positive step. In the
Commission staff's ongoing monitoring of advertising, they have not yet
seen ads by BMG artists that include this new label.
iv. conclusion
The Commission's follow-up Reports have documented progress by the
movie and electronic game industries in complying with and improving
their own self-regulatory policies restricting ad placements and
requiring rating information in advertising.
Because of First Amendment and other issues, the Commission
continues to support private sector initiatives by industry and
individual companies to implement these suggestions. To encourage
continued voluntary compliance and to document any changes in self-
regulatory efforts, the Commission will monitor the entertainment
industry's marketing practices through the next year, and will then
issue a follow-up report.
This concludes my prepared remarks. I would be pleased to answer
any questions you may have.
Endnotes
1 The views expressed in this written statement
represent the views of the Commission. My oral statement and responses
to questions you may have are my own and are not necessarily those of
the Commission or any individual Commissioner.
2 15 U.S.C. Sec. 45(a).
3 The Commission also has responsibility under 46
additional statutes governing specific industries and practices. These
include, for example, the Truth in Lending Act, 15 U.S.C.
Sec. Sec. 1601 et seq., which mandates disclosures of credit terms, and
the Fair Credit Billing Act, 15 U.S.C. Sec. Sec. 1666 et seq., which
provides for the correction of billing errors on credit accounts. The
Commission also enforces over 30 rules governing specific industries
and practices, e.g., the Used Car Rule, 16 C.F.R. Part 455, which
requires used car dealers to disclose warranty terms via a window
sticker; the Franchise Rule, 16 C.F.R. Part 436, which requires the
provision of information to prospective franchisees; the Telemarketing
Sales Rule, 16 C.F.R. Part 310, which defines and prohibits deceptive
telemarketing practices and other abusive telemarketing practices; and
the Children's Online Privacy Protection Rule, 16 C.F.R. Part 312.
The Commission does not, however, have criminal law enforcement
authority. Further, under the FTCA, certain entities, such as banks,
savings and loan associations, and common carriers, as well as the
business of insurance, are wholly or partially exempt from Commission
jurisdiction. See Section 5(a)(2) and (6)a of the FTC Act, 15 U.S.C.
Sec. 45(a)(2) and 46(a). See also The McCarran-Ferguson Act, 15 U.S.C.
Sec. 1012(b).
4 15 U.S.C. Sec. Sec. 46(b) and (f). Section 46(f) of
the FTC Act provides that ``the Commission shall also have the power .
. . to make public from time to time such portions of the information
obtained by it hereunder as are in the public interest; and to make
annual and special reports to Congress . . .''
5 The Department of Justice provided the FTC with
substantial funding and technical assistance to enable the FTC to
collect and analyze public and non-public information about the
industries' advertising and marketing policies and procedures, and to
prepare the Commission's written Reports. The analysis and conclusions
contained in these Reports are those of the FTC.
6 The Commission received information from numerous
individual companies, as well as the Motion Picture Association of
America (MPAA), the National Association of Theatre Owners (NATO), the
Recording Industry Association of America (RIAA), the National
Association of Recording Merchandisers (NARM), the Entertainment
Software Rating Board (ESRB), the Video Software Dealers Association
(VSDA), the Interactive Digital Software Association (IDSA), the
Interactive Entertainment Merchants Association (IEMA), and the
American Amusement Machine Association (AAMA).
7 In addition to industry sources, the Commission
received information from a wide range of consumer, medical, and
advocacy organizations. The American Academy of Pediatrics, American
Psychological Association, Center on Media Education, Center on Media
and Public Affairs, Children Now, Commercial Alert, The Lion & Lamb
Project, Mediascope, National Institute on Media and the Family,
National PTA, and Parents' Music Resource Center were among the
organizations that provided information to the Commission.
8 The Commission's September 2000 Report is available
online at: http://www.ftc.gov/opa/2000/ 09/youthviol.htm.
9 See Appendix F (Mystery Shopper Survey and Parent-
Child Survey) of the Commission's September 2000 Report.
10 The Commission's April 2001 Report is available
online at: http://www.ftc.gov/opa/2001/04/ youthviol.htm.
11 The Commission's December 2001 Report is available
online at: http://www.ftc.gov/opa/2001/ 12/violence.htm.
12 Music industry members continued to place ads on
shows that are highly popular with teens, such as Total Request Live on
MTV and 106th & Park on BET.
13 The Commission's June 2002 Report is available online
at: http://www.ftc.gov/opa/2002/06/ mvec0602rev.htm.
14 Commissioner Swindle, in his concurring statement to
the Commission's June 2002 Report, noted that ``the music industry
continues to target young people explicitly in its advertising and, for
the most part, refuses to provide content-based information that could
help consumers. The motion picture and electronic game industries have
acted far more responsibly in improving their self-regulatory programs,
yet continue to allow advertising of R-rated movies and M-rated games
in venues that attract large numbers of teens.''
15 Motion Picture Association of America, Initiatives of
MPAA Member Companies, Sept. 26, 2000.
16 Movie industry members continue to place ads on shows
that are highly popular with teens, such as Grounded For Life on Fox,
Gilmore Girls on WB, WWF Smackdown on UPN, and MTV's The Real World.
17 See BMG News Release, BMG Announces Steps to Build On
Industry's Parental Advisory Program, June 3, 2002, available at http:/
/www.bmg.com/news/archive--general/general-- frameset.html (visited
September 17, 2002).
The revised sticker appears as follows:
[GRAPHIC] [TIFF OMITTED] 81964.001
Mr. Upton. Thank you, Mr. Peeler.
Dr. Rich.
STATEMENT OF MICHAEL RICH
Mr. Rich. Good morning, Mr. Chairman and members of the
committee. Good morning again. Thank you for the opportunity to
testify before you today.
My name is Dr. Michael Rich, and I am testifying on behalf
of the American Academy of Pediatrics and its 57,000 members
across the U.S. .
As a pediatrician who specializes in adolescent medicine, I
am keenly aware of how crucial music is to a teen's identity
and how it helps them to find important social and
interpersonal behaviors. In fact, one study showed that 24
percent of high school students ranked popular music as one of
their top three sources for guidance on social interactions.
We often use music to define our beliefs and convictions.
We are attracted to music that will confirm and support these
beliefs and convictions. Music can truly affirm and confirm
struggles, joys, sorrows, fears, and fantasies.
During the past four decades, rock music lyrics have become
increasingly explicit, particularly with reference to drugs,
sex, violence, and sexual violence. Heavy metal and rap lyrics
have elicited the greatest concern for experts as they compound
the environment in which some adolescents increasingly are
confronted with risktaking, substance abuse, pregnancy,
homicide, and suicide.
To date, no scientific studies have proved a cause-and-
effect relaionship between violent or sexually explicit lyrics
and adverse behavioral effects. Causality is exceedingly
difficult to prove, as we have all witnessed in the debate
about whether tobacco smoking causes lung cancer, heart
disease, and stroke. However, all of us must pay attention to
the strong associations that have been observed between music
content and health outcomes. There is some music that
communicates potentially harmful health messages, especially
when it reaches a vulnerable and impressionable audience.
The words and images evoked by popular music are powerful
influences on how teachers--excuse me--are powerful influences
on how teenagers are socialized. Youth who feel rejected and
alienated are especially responsive to lyrics that glorify
hostility and violence. Numerous studies indicate that a
teenager's preference for heavy metal music may be a
significant marker for alienation, substance abuse, psychiatric
disorders, and suicide risk, among others.
The world can be a threatening and scary place, especially
for young people who feel powerless, disenfranchised,
disrespected due to economics, race, or beliefs. Artists should
have the right to reflect that reality and to address any issue
in any way that they choose. However, we must recognize that
the content that we choose to listen to inevitably affects us,
and we must choose accordingly.
Changes in young people's attitudes and behavior toward
each other hurt all young people, regardless of their race,
gender, religious, or ethnic backgrounds. It is in the child's
best interest to listen to lyrics or to watch videos that are
not violent, sexist, drug-oriented or antisocial.
Music lyrics should be made easily available to parents so
that they can read them before deciding whether to purchase the
recording. To date, this has not occurred. Many recordings are
broadcast in sanitized radio versions which are difficult if
not impossible to buy retail. The current system of parental
advisory labels provides inadequate information for parents to
make appropriate choices for their children. To disclose the
content of their product is not a violation of their rights but
truth in advertising.
From the perspective of a doctor who cares for and cares
about children, this is simply about having the information
necessary for parents to make a compassionate and safe choice
for their children.
The Academy has a number of recommendations to consider if
we are to help families use the media in a positive way. Time
limits me to the following:
The music industry should develop and apply a system of
specific content labeling of music regarding violence, sex,
drugs, or offensive lyrics. We, too, applaud BMG for their
leadership in this direction.
Music lyrics should be made easily available to parents so
that they can read them before deciding whether to purchase the
recording.
Research should be developed concerning the impact music
lyrics have on the behavior of teenagers and children.
Parents should take an active role in monitoring music that
their children are exposed to and which they can purchase, as
well as the videos they watch. In order to do so, they need the
information to make that decision; and pediatricians should
encourage parents to do this.
Parents should also be reminded that if we as consumers do
not buy or use entertainment media that are harmful to our
children, these media would no longer be produced. Media are
not the only cause of violence, sexism, racism, or health-risk
behaviors, but they are a powerful influence on our young
people over which we have some control. If we can make our
lives and our future safer by paying attention to these issues
and intervening where necessary, then we owe it to our
children, ourselves, and our society to do so.
Thank you.
[The prepared statement of Michael Rich follows:]
Prepared Statement of Michael Rich, American Academy of Pediatrics,
Committee on Public Education
Good morning, Mr. Chairman, members of the Committee. I want to
thank you for the opportunity to testify before you today as a
pediatrician, as a child health researcher, as a filmmaker, and as a
parent. My name is Michael Rich, and I am testifying on behalf of the
American Academy of Pediatrics (AAP) and its 57,000 pediatrician
members. I am a member of the Academy's Committee on Public Education.
I practice pediatrics and adolescent medicine at Children's Hospital
Boston, and teach at Harvard Medical School and Harvard School of
Public Health. In my research, I study the effects of various
entertainment media on the physical and mental health of children and
adolescents. I actually began my professional career as a filmmaker. I
love audiovisual media and continue to work in video and radio
production, developing pro-child and health-positive media as tools for
child health research, education, and advocacy. Finally, and most
importantly, I am the father of a 16-year-old daughter and a 14-year-
old son.
impact of media on health and behavior of children
Starting from when we are very young, we get the majority of our
information from media, which includes television, movies, music,
magazines, the Internet, video games, books, videos and all forms of
advertising. While media offers us, including children, many
opportunities to learn and to be entertained, how people interpret
media images and media messages also can be a contributing factor to a
variety of public health concerns. Among children and adolescents,
research shows that key areas of concern are:
Aggressive behavior and violence; desensitization to violence,
both public and personal
Substance abuse and use
Nutrition, obesity and dieting
Sexuality, body image and self-concept
Advertising, marketing and consumerism
As a result of this research, the AAP and its members have been
working on many fronts to help parents and children glean the best from
unending media exposure. The AAP launched its Media Matters campaign
(www.aap.org/advocacy/mediamatters.htm) five years ago to help
pediatricians, other health professionals, parents and children become
more knowledgeable about the impact that media messages can have on
children's health behaviors. Public education brochures on the media
have been developed and distributed, including one that explains how
the various ratings systems work. In addition, the Academy established
a Media Resource Team (www.aap.org/mrt) in 1994 to work with the
entertainment industry in providing the latest and most accurate
information relating to the health and well being of infants, children,
adolescents and young adults.
Parents alone cannot stem the tidal wave of images their children
are exposed to throughout a given day. They need help, particularly
from the entertainment industry and retailers.
Impact of Music Lyrics and Music Videos
Pediatricians' concern about the impact of music lyrics and music
videos on children and youth compelled the American Academy of
Pediatrics to issue a policy statement on the subject 13 years ago,
with revised, updated versions developed and published multiple times
since then. Policy statements communicate the official position of the
Academy concerning health care issues, and help guide pediatricians in
their assessment and treatment of patients.
As a pediatrician who specializes in adolescent medicine, I am
keenly aware of how crucial music is to a teen's identity and how it
helps them define important social and interpersonal behaviors. In
fact, one study showed that 24% of high school students ranked popular
music as one of their top 3 sources for guidance on social interaction.
We often use music to define our beliefs and convictions. We are
attracted to music that will confirm and support these beliefs and
convictions. Music can truly affirm and confirm a teenager's struggles,
joys, sorrows, fears, and fantasies.
During the past four decades, rock music lyrics have become
increasingly explicit--particularly with reference to drugs, sex,
violence and sexual violence. Heavy metal and rap lyrics have elicited
the greatest concern, as they compound the environment in which some
adolescents increasingly are confronted with risk-taking, substance
use, pregnancy, HIV/AIDS and other sexually transmitted diseases,
homicide and suicide.
Despite stories in the popular press relating suicides, ritualistic
killings and school shootings to popular music influence, to date, no
scientific studies have proved a cause-and-effect relationship between
violent or sexually explicit lyrics and adverse behavioral effects.
Causality is exceedingly difficult to prove, as we have all witnessed
in the debate about whether tobacco smoking causes lung cancer, heart
disease, and stroke. However all of us, pediatricians, parents, and
responsible members of society, must pay attention to the associations
that have been observed between music content and health outcomes.
There is some music that communicates potentially harmful health
messages, especially when it reaches a vulnerable and impressionable
audience. Teenagers become absorbed in songs they believe help better
define them during this rocky transition into adulthood. The words and
images evoked by popular music are powerful influences on how they are
socialized. Youth who feel rejected and alienated are especially
responsive to lyrics that glorify hostility and violence. Numerous
studies indicate that a preference for heavy metal music may be a
significant marker for alienation, substance abuse, psychiatric
disorders, suicide risk, sex-role stereotyping, or risk-taking
behaviors during adolescence. With the advent of MTV and VH-1, not only
do we have to listen to violent lyrics, but we also get to see violent
narratives graphically portrayed. Research studies indicate that music
videos may have a significant behavioral impact by increasing violent
attitudes and behaviors in viewers, desensitizing male college students
to violence against women, disproportionately reinforcing racial and
gender stereotypes, and by making teenagers more likely to accept and
engage in unsafe sex.
The world can be a threatening and scary place, especially for
young people who feel powerless, disenfranchised, or disrespected due
to economics, race, or beliefs. Artists should have the right to
reflect that reality and address any issue in any way that they choose.
However, we must recognize that the content that we choose to listen to
inevitably affects us and we must choose accordingly. Changes in young
people's attitudes and behaviors toward each other hurt all young
people, regardless of their race, gender, religious or ethnic
backgrounds. Parents and pediatricians believe that it is important to
know the contents of the food we feed our children's bodies. To protect
their physical and mental health, we should be equally aware of what,
to paraphrase Jefferson Airplane, we feed their heads.
AAP Recommendations
Although there is no one solution, awareness of and sensitivity to
the potential impact of music lyrics and videos by consumers, the
entertainment and music industry is one important piece of the puzzle.
It is in children's and teenagers' best interest to listen to lyrics or
to watch videos that are not violent, sexist, drug-oriented, or
antisocial. As a result, the Academy has, in our November 2001 policy
statement on media violence, suggested that ``music lyrics should be
made easily available to parents so that they can read before deciding
whether to purchase the recording.'' To date, this has not occurred.
Many recordings are broadcasted in sanitized radio versions, which are
difficult, if not impossible, to buy retail. The current system of
parental advisory labels applied by the producers themselves provides
inadequate information for parents to make appropriate choices for
their children. To disclose the content of their product is not a
violation of rights, but truth in advertising.
The Academy strongly opposes censorship. We advocate for more
child-positive media. As a society, we have to acknowledge the
responsibility that parents, the music industry and others have in
helping to foster the nation's children. The entertainment industry
should extend personal concern for the well being of children to their
business of creating and selling music, movies, television programming
and video games.
Although the evidence is incomplete, based on our knowledge of
child and adolescent development, the AAP believes that the public,
including the recording industry and parents, should be aware of
pediatricians' concerns about the possible negative impact of music
lyrics and videos. The Academy recommends that:
The music industry should develop and apply a system of
specific content labeling of music regarding violence, sex,
drugs, or offensive lyrics. We label the food we eat--why not
label the music? Let the consumer, including parents and youth,
know what the music contains and let the educated consumer make
the decision. For those concerned about the ``forbidden fruit''
syndrome, one study has examined the impact of parental
advisory labels, and it found that teens were not more likely
to be attracted simply because of the labeling.
Music lyrics should be made easily available to parents so
that they can read before deciding whether to purchase the
recording.
Broadcasters and the music industry should be encouraged to
demonstrate sensitivity and self-restraint in decisions
regarding what is produced, marketed and broadcast.
Performers should be encouraged to serve as positive role
models for children and teenagers.
Research should be developed concerning the impact music
lyrics have on the behavior of adolescents and preadolescents.
Parents should take an active role in monitoring music that
their children are exposed to and which they can purchase, as
well as the videos they watch. Ultimately, it is the parent's
responsibility to monitor what their children listen to and
view. Pediatricians should encourage parents to do so.
Pediatricians should counsel parents to become educated about
the media. In order to help this process, the Academy has
launched Media Matters, a national media education campaign
targeted to physicians, parents and youth. The primary goal of
the Media Matters campaign is to help parents and children
understand and protect themselves against the sometimes
negative effects of images and messages in the media, including
music lyrics and videos.
Media education includes developing critical thinking and viewing
skills, and offering creative alternatives to media consumption. The
Academy is particularly concerned about entertainment media images and
messages, and the resulting impact on the health of vulnerable young
people, in areas including violence, safety, sexuality, use of alcohol,
tobacco, and illicit drugs, nutrition, and self-concept and identity.
For example, if a music video shows violence against women to any
degree, a viewer, including young girls, could be led to believe such
action is acceptable. If they were educated about the media, the
premise in the video would be questioned and hopefully rejected.
Parents should also be reminded that if we, as consumers, do not
buy or use entertainment media that are harmful to children, these
media would no longer be produced. Media are not the only cause of
violence, sexism, racism, or health risk behaviors, but they are a
powerful influence on these behaviors over which we have some control.
There must be a collective solution to this social problem.
Parents, pediatricians, the music industry and others have critical
roles in discussing and addressing the increasing amount of violence in
society, particularly when it comes to children and adolescents. If we
can make our lives and our future safer by paying attention to these
issues and intervening where necessary, then we owe it to our children,
ourselves, and our society to do so.
Thank you for your time today, and I am willing to answer any
questions you may have.
Mr. Upton. Thank you very much.
Ms. Rosen.
STATEMENT OF HILARY ROSEN
Ms. Rosen. Thank you, Mr. Chairman, Congressman Gordon.
Thank you for having me here today.
And, Mr. Shimkus, while I actually didn't take the Red Eye
last night, I am equally sleep deprived, having been up with a
sick child all night. So if I am a little slow, I apologize.
The RIAA is a trade association of record companies.
Obviously, the recording industry's marketing practices have
been the focus of a significant amount of attention from this
Congress and from the FTC over the last several years, and
there has been significant change in these practices over the
last several years, although I think it is worth noting that in
the very first FTC study a public opinion poll showed that
there was over 75 percent approval for the existing program
before we made all of these changes.
My written testimony has a description of all of our
successful implementation of our guidelines which have been
revised and put in place over the last 18 months. I will
highlight a couple of them in short.
Since much of the reason that music marketing is different
from other media is the existence of edited versions of the
same product which is sold with explicit versions, we have
significantly increased awareness of edited versions of these
recordings. We have put a new sticker on the package and have
added new information about edited versions in all advertising.
In addition, our periodic reviews have shown excellent
compliance with our advertising guidelines, print, and TV
publications. And, finally, we have continued our efforts with
organizations who focus on opportunities for young people as
well as troubled youth.
Today, I am pleased to report a new partnership we recently
developed with the National Mental Health Association, a
partnership whose goal is to find creative and supportive ways
to encourage young people who need help to seek such
assistance. The National Mental Health Association views what
Dr. Rich said as an opportunity. If young people are attracted
to alienating music, that is a signal for adults to go in and
help them intervene; and our project with NMHA will help find
ways to encourage young people to do that.
So, as you can see by my testimony, I am proud of our
record to date.
Since Mr. Towns raised it, I would like to raise something
but make it clear to this committee that I raise it not to
avoid any responsibility on our part. We have responsibility. I
think we take it, and we embrace it. But this committee should
know about some significant statistics that have literally
changed the environment for kids in their getting music.
A significant percentage of 12- to 18-year-olds, almost 70
percent in many cases, for those kids our marketing practices
are largely inconsequential. That is because they don't go to
stores or legitimate on-line music sites to get or learn about
music. They are logging on to a peer-to-peer network and trade
music with millions of others.
Our most recent and, frankly, depressing poll shows that
the 12- to 18-year-old kids are the most likely ones to go to
these sites when they are looking for music and the least
likely to go to a legitimate place to buy it by a margin of 67
to 19 percent. The operation of these networks certainly fall
into this committee's natural jurisdiction. I would like to
share a couple of examples.
When you go to a legitimate on-line site, because of our
new guidelines you will see--and I think I gave this handout
out, if people will just look at this handout--you will see
that what we have here of a stickered record is shown stickered
on the Amazon.com site. If you go to one of the on-line
subscription services, the sticker on explicit lyrics is
plainly obvious. The on-line subscription services often have
parental controls that allow parents to exclude explicit
content, all of these as the focus of our industry over the
last couple years.
Now go to Kazza, where 70 percent of 12- to 18-year-olds go
for their music. Key in the same JZ, and you get page after
page after page of tracks and albums available for download
without a single advisory. And probably somewhat, as parents,
most disturbing of all is for those artists who are
particularly popular with young teens and artists like Britney
Spears, you key in Britney Spears and you can see an
overwhelming amount of porn focused in with all of the rest of
the tracks that are available.
The peer-to-peer networks are not per se illegal. It is
their activity that is illegal; and, frankly, they are
supported by advertising from many legitimate significant
companies.
You know, I encourage the FTC to spend time investigating
this and encourage this committee to ask the FTC to do this and
investigate these systems as much as they have the legitimate
music industry. Because, in sum, while I am proud of our
record, we have an obligation to do it. We care about parents
and our consumers. The reality is, in today's marketplace our
efforts are so diluted in this target-age group that--because
of this rampant peer-to-peer use that it is just interrelated
to the issues we are talking about today.
Thank you, and I would be happy to answer any questions.
[The prepared statement of Hilary Rosen follows:]
Prepared Statement of Hilary Rosen, Chairman and CEO, Recording
Industry Association of America
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.
Mr. Upton. Thank you.
Mr. Simmons, welcome.
STATEMENT OF RUSSELL SIMMONS
Mr. Simmons. Thank you, Mr. Chairman. Am I on?
Mr. Upton. You should know more about microphones than
anyone else here.
Mr. Simmons. No, sir. I am not an artist. I usually shy
away from microphones, but for this occasion I am thrilled to
use one. Thank you.
The first thing, I am going to read my testimony, but I
wanted to make a statement. I was--because I haven't been
paying attention to some of the things that have been going on
here in Washington. But I was surprised to hear that there was
a connection between enforcing legislature against stealing and
the willingness of this panel to work for--to protect our
rights for our music and this panel's looking into our
practices in regards to protecting youth from music that they
found to be upsetting. So I think they should be separate, and
I think that that is the kind of legislation that you have a
right to explore, protecting us from stealing. But I think that
we are here now discussing something we don't have any rights.
But I want to read my testimony. I just wanted to make that
statement, if you don't mind, and I want to read the testimony.
I am here today to speak on behalf of the Hip Hop Summit
Action Network. It is the largest national coalition of hip hop
artists, recording industry executives, civil rights and
business leaders. I am also joined by Network President Dr.
Benjamin Chaves Muhammad, who is the former Executive Director
and CEO of the NAACP.
We represent the interests of the hip hop community, and we
are very concerned and committed to protecting the First
Amendment rights of hip hop artists and the rights of the
freedom of cultural expression. The hearing today on Recording
Industry Marketing Practices: A Check-Up is an opportunity for
us to inform you that the theme of Hip Hop Summit Action
Network is taking back responsibility. We work closely with the
industry on issues related to marketing and promotions, and in
fact we have strongly supported the extensive dissemination and
display of Recording Industry Associations of America's
parental advisory label. This has proven to be an effective
tool that alerts parents to explicit content and helps parents
to make decisions about music for their children.
During the past 2 years, we have made tremendous progress,
I think, in increasing public awareness on the positive value
and cultural impact of the hip hop on our society. We have
sponsored successful summits in New York, Los Angeles, Kansas
City, Washington, Miami. Next week, we will be in Dallas. We
continue to bring young people together for many good social
causes; and the effects are obvious in many places, if you guys
are paying attention.
But hip hop has evolved into a global phenomenon, cultural
phenomenon, has transcended race, ethnicity, class, and
language. We believe in telling the truth. Hip hop music lyrics
bear witness to truth of the social, economic, and political
condition in our communities. I believe they must continue to
tell the truth about the street, if that is what we know, and
must continue to tell the truth about God, if that is what we
found.
Part of telling the truth is making sure that you know and
talk more about and speak more about the truth than to appease
those who are in power. Speaking truth to power is important,
is essential.
The Congress of the United States should not censor free
speech nor cultural expression. It is unconstitutional for
government intrusion or dictation concerning rating of music or
limiting marketing that has the effect of denying free speech.
What is offensive is any attempt by the government to deny the
expression of words, lyrics, or music that emerge out of a
culture that has become part of the soul of America. Congress
should not attempt to legislate preferences in music, art, and
culture.
Last year, the FTC report on explicit content and marketing
disproportionately focused on black hip hop artists. Once
again, we are concerned that our culture is being targeted and
profiled by people who don't understand our reality. We
therefore appeal for more understanding and hope that the
Congress would do the right thing and not censor hip hop.
I am happy to answer any questions that you have regarding
this culture and this music. Thank you for your time.
[The prepared statement of Russell Simmons follows:]
Prepared Statement of Russell Simmons, on Behalf of The Hip Hop Summit
Action Network
My name is Russell Simmons and I am submitting this statement on
behalf of the Hip Hop Summit Action Network and its Executive Director,
Minister Benjamin Muhammad. I am Chairman of the Hip Hop Summit Action
Network and I have worked in the music and entertainment industry for
more than twenty-five years. Minister Benjamin is the former Executive
Director and CEO of the NAACP and has over thirty-five years of
experience in civil and human rights.
The Hip Hop Summit Action Network is the broadest national
coalition of Hip Hop artists, entertainment industry executives, civil
rights and community leaders. Established this year, the mission of the
Hip Hop Summit Action Network is to support Hip Hop and freedom,
justice, equality and empowerment for all based on the principles of
freedom of speech, music and art creativity, and the universality of
humanity.
The Hip Hop community has decided to take a leadership position
toward the evolution of our artistic destiny and responsibility. We
convened an historic summit last year in New York and we are planning
others in Los Angeles and Miami in August to explore questions related
to violence in our own communities, racial profiling, police brutality,
representation of women, and the profanity of poverty, and how we can
work from within our industry to expand and elevate the artistic
presentation of our culture and experience.
Although we know that the harsh underlying social realities that
some of our music exposes have not changed much in our communities, we
are committed to speaking the truth. We believe that we must continue
to tell the truth about the street if that is what we know and we must
continue to tell the truth about God if that is who we have found. Part
of telling the truth is making sure that you know, and talk more about
what you know than to speak or do music to appease those who are in
power. Hip Hop represents truth telling, speaking the truth to
ourselves and speaking the truth to power out of the context and
condition of our community.
The Congress of the United States should not censor free speech nor
artistic expression. It is unconstitutional for government intrusion or
dictation concerning ``labeling of music'' or ``rating of music'' that
has the effect of denying free speech. What is offensive is any attempt
by the government to deny the expression of words and lyrics that
emerge out of a culture that has become the soul of America. In fact
Hip Hop has now grown to become a global cultural and artistic
phenomena. Congress should not attempt to legislate preferences in
music, art and culture.
My final point is that this is often largely about race. And it
makes some of us very concerned that few will publicly admit that this
effort to censure Hip Hop has deep seated racial overtones. Hip Hop
emerged out of the African American experience. Eminem is a successful
white Hip Hop artist who, power to him, has excelled and profited from
the genre of black music. He stands on the shoulders of other
originators of Hip Hop. The Federal Trade Commission's report on
explicit content disproportionately focused on black Hip Hop artists.
These reports are flawed scientifically as well as morally and
culturally and should not, therefore, be used as a basis for
constructing a system of ``ratings'' in regard to music and other forms
of entertainment.
Simply put, we conclude by appealing to this Committee to refrain
from censoring, labeling, or rating our music and culture in the
absence of understanding and appreciation of our artistic work which
represents the genius of our culture and talent of our youth, in fact
all youth of today--black, white, Latino, Asian and all others.
Thank you.
Mr. Upton. Thank you, Mr. Simmons.
Mr. Marmaduke.
STATEMENT OF JOHN MARMADUKE
Mr. Marmaduke. Good morning, Mr. Chairman. My name is John
Marmaduke. I am the President and CEO of Hastings
Entertainment, and I am a past Chairman of the Board of
Directors of the National Association of Recording
Merchandisers, and I currently serve on NARMS' Retailer's
Advisory Council as well as the Board of Directors of the Video
Software Dealers Association. I appreciate this invitation to
update you on our retail marketing practices.
Hastings is a publicly held company headquartered in
Amarillo, Texas. We have 144 stores; and we sell not only
music, but video, computer software, books, magazines,
newspapers, and video games. We have over 30 years of retail
experience in a variety of markets, from towns as small as
15,000 people to large urban centers in the 21 Western States.
For 3 years we have also had our Web site, GoHastings.com.
Hastings' corporate mission is to satisfy our guests'
desires for personal entertainment and information; and that
mission is reflected in every store we open, regardless of the
size of the community. We hear directly from our customers. In
fact, the first thing I do every morning is scroll e-mails from
our store associates, and also I get about 100 ``Postcards to
the President'' every morning that customers fill out that are
at every cash and exit vestibule in our stores. So we are
pretty well connected; and, like a lot of retailers, that is
the way we want to be. That is who we serve.
In terms of music selection, our company's policy is today,
and always has been, is to stock titles that carry parental
advisory because they do meet a demand from our customers.
However, we do require them to be 18 years old to purchase it.
I think we were probably the first retail chain to do that, and
we had quite a bit of publicity at the time. But we also have
the same policy with video games and movies that we sell.
We stand behind these programs. We know they work well,
because in those hundred postcards that I read every morning I
don't think I have had a complaint on the ``18 to purchase'' in
over 3 or 4 years, and I can assure you that I hear complaints
on about everything that customers don't like with some
frequency.
Not every retailer's policy is just exactly like ours. Some
don't stock these titles at all, like Wal-Mart. Some may
restrict the sales; some may not. Each retailer's decision
about what to stock, how to merchandise, how to advertise, and
what to sell is driven by their desire to meet their target
customers needs. It is just that simple.
Even though each retailer may take a different tack when it
comes to marketing music to customers, our common goal is to
keep improving the program as a whole. Over the years, through
NARM, we have provided the record companies with feedback from
our customers; and we have offered suggestions on a variety of
things like, for example, standardizing the placement of the
logo, adding merchandising materials or instituting guidelines
to applying the labels so it doesn't cover that logo.
In turn, we welcome information and dialog provided by the
FTC and you elected officials. This ongoing review has resulted
in many improvements, and Hastings has also improved the way we
have handled the parental advisory information in our
advertising and also on our Web site. Last fall, we made
brochures printed courtesy of the RIAA that describe this
program and made it available to our customers.
Since the subcommittee's hearings on this subject a little
more than 1 year ago, NARM has been working with the Federal
Trade Commission and other entertainment retailing
organizations on a more comprehensive consumer education
campaign about the various ratings programs. We think the more
information the parents have about these programs, the better
they will work.
I want to assure you, Mr. Chairman and the members of the
subcommittee, we music retailers take these challenges
seriously. I know I speak for fellow retailers when I say that
our stores are a part of the communities they are located in;
and our stores, especially being in smaller communities, we are
very sensitive to those communities' desires and needs. We know
we must be responsible to their concerns and--because we want
to stay in business.
Can we do more? I am certain we can, and we are happy to
keep meeting with you and with the RIAA to keep improving this
program.
Thank you again for giving me this opportunity to testify
today.
[The prepared statement of John Marmaduke follows:]
Prepared Statement of John Marmaduke, President and CEO, Hastings
Entertainment
Good morning Mr. Chairman and Members of the Subcommittee. My name
is John Marmaduke and I am President and CEO of Hastings Entertainment.
I am a past Chairman of the Board of Directors of the National
Association of Recording Merchandisers, and I currently serve on NARM's
Retailer's Advisory Council as well as on the Board of Directors of the
Video Software Dealers Association. I appreciate the invitation to
appear before you today to update you on retail marketing practices for
music that carries the Parental Advisory.
Hastings is a publicly held company headquartered in Amarillo,
Texas. Our 144 stores carry music, video, computer software, books,
magazines and videogames representing nearly 3 million square feet of
retail space. Between our warehouse, offices, and stores, we have 7000
employees. We have over 30 years of retail experience in a variety of
markets, ranging from small towns to large urban areas throughout 21
states of the Western U.S. For three years we have also operated
GoHastings.com, our e-commerce initiative.
Hastings' corporate mission is to satisfy our guest's desire for
personal entertainment and information. That mission is reflected in
every store we open, regardless of the size of the community. We hear
directly from our customers whenever they think we're not doing
something right. So our success, like that of every retailer, depends
on our ability to meet the needs of our customers every day.
In terms of the music selection, my company's policy is to stock
titles that carry the Parental Advisory because they do meet a demand
from our customers. However, we require purchasers to be at least 18
years old. Hastings was one of the very first retailers to have such a
policy and we were considered quite brave when we launched it. We now
have similar programs in place for movies and for video games. I get
approximately 100 ``Postcards to the President'' every day. I have not
received a complaint from a customer or a parent on inappropriate music
in the hands of their under-18 year old children in years. We stand
behind these programs; we think they work well; and we know our
customers appreciate them.
Not every retailer's policy or program is exactly like ours. Some
don't stock titles with the Parental Advisory; some offer edited
versions, while others may not restrict the sale of these titles to
minors. Each retailer's decision about what to stock, how to
merchandise, how to advertise, and who to sell to is driven by the
desire to meet the needs of their target customer. These different
approaches in the marketplace offer parents a choice when it comes to
deciding what's best for their family.
Even though each retailer may take a different tack when it comes
to marketing music to its customers, our common goal is to keep
improving the program as a whole. Over the years, through NARM, we've
provided the record companies with feedback from our customers. We've
offered suggestions on a variety of things like, for example,
standardizing the placement of the logo, or adding merchandising
materials, or instituting guidelines for applying the label. In turn,
we have welcomed the information and dialogue provided by the FTC and
by elected officials. This ongoing review has resulted in many
improvements. Hastings has improved the way we handle Parental Advisory
information in our advertising and on our website. All of our ads
contain the Parental Advisory logo, and our website contains a link to
ParentalGuide.org, the industry site that contains information on all
the media rating programs. When NARM made point-of-purchase materials
that describe the Parental Advisory available a few years back, we
began ordering those and replenish them as necessary. Last year, when
brochures on the program were made available through NARM, we offered
those to Hastings' guests.
Since the Subcommittee's hearing on this subject a little more than
one year ago, NARM's retailers have undertaken a fairly comprehensive
review of the Parental Advisory program that covered such aspects as
the guidelines for applying the label, the quality of information
conveyed by the label, promotional support of the program, and edited
versions.
There were a number of recommendations that were communicated to
RIAA, including the need for more information about why titles carry
the PAL, adding guidelines for radio, adding a label for edited
versions and perhaps guidelines for editing PAL titles. RIAA did adopt
many of the recommendations, including the addition of labeling edited
versions of PAL titles, and both organizations worked together to
encourage greater support for the PAL program from independent labels.
(A detailed report on the review, the conclusions, and NARM's
activities in response to the review is attached.)
NARM has continued to provide retailers with copies of the FTC
reports, with updates to the RIAA guidelines, and with samples of copy
that we can use to help educate our customers about the program both in
the store and online. NARM has recently begun working with the Federal
Trade Commission (FTC) and other entertainment retailing organizations
on a more comprehensive consumer education campaign about the various
ratings programs. We welcome that initiative and think the more
information parents have about these programs the better they will
work.
I want to assure you, Mr. Chairman, and the members of the
Subcommittee that music retailers take these challenges very seriously.
I know I speak for my fellow retailers when I say that our stores are
part of the communities where they are located. We know we must be
responsive to community concerns if we want to stay in business. Can we
do more? I'm sure we can, and we're happy to keep meeting with you and
with the RIAA to keep improving this program.
Thank you again for giving me the opportunity to testify today. I
look forward to answering any questions that you may have.
______
National Association of Recording Merchandisers
April 19, 2002
Mr. Dick Kelly
Ms. Mary Engel
Federal Trade Commission
600 Pennsylvania Ave NW
Washington, DC 20580
Dear Mr. Kelly and Ms. Engel, Thank you for the opportunity to
update you regarding the efforts of NARM and our member companies to
support the Parental Advisory program for music. Since our last update
there have been a number of activities and communications about which
we would like to make you aware. Our activities have reflected two
primary goals: 1) a review of the guidelines for the Parental Advisory
for the purpose of identifying areas which could be improved; 2)
enhancing the educational efforts of both NARM and our members so that
the public has a better understanding of the Parental Advisory program
and how it works. We believe that the activities as outlined in this
report reflect real progress in both areas as well as the ongoing
commitment of NARM and its member retailers to the success of the
Parental Advisory program.
parental advisory guidelines
A joint NARM/RIAA Task Force was formed in 2001 for the purpose of
evaluating the Parental Advisory program and making recommendations for
improving the program. NARM began this process by soliciting feedback
from our member retailers and wholesalers regarding various aspects of
the program, including the guidelines for applying the Parental
Advisory Label, the consistency with which the label is applied, the
quality of the information conveyed by the label; the placement of the
label, promotional support for the label, and edited versions of
labeled releases. NARM concluded that there were a number of ways in
which the program could and should be improved:
1. More information needed to be communicated to consumers about titles
which carry the Parental Advisory Label.
2. More independent labels needed to be encouraged to support the
program.
3. Advertising guidelines needed to be revised to include radio as well
as TV ads.
4. Better labeling of music videos with music from CD's carrying the
Parental Advisory Label.
5. Edited versions of titles that carry the Parental Advisory Label
needed to be clearly marked with a standardized label. Artwork
built on the existing Parental Advisory was the preference.
Guidelines for editing PAL titles would be helpful.
6. A coordinated set of guidelines for placement of the PAL logo and
placement of retail price stickers might be necessary to insure
that price stickers never obstruct the visibility of the PAL
logo.
These recommendations were communicated to RIAA through a series of
communications and meetings over the fall and winter. RIAA responded by
revising their guidelines in February, 2002. The revised guidelines
call for 1) an expansion of the advertising guidelines to include all
media: print, radio, TV, and internet; 2) the adoption of standardized
labeling for edited versions of PAL titles along with recommendations
for advertising the availability of edited versions. Retailers would
still like more information about why titles receive the PAL
designation or a link to song lyrics . Many would prefer a more
consistent approach to editing PAL titles. (Currently some edited CD's
may delete whole songs, or bleep certain words, or include a revised
version with new lyrics.) Because the labeling of edited versions is
new, there will be an ongoing evaluation of the placement of the
``edited version'' label to ensure that the current recommended
placement (top spine) works. Retailers concurred with labels that the
top spine placement was the most logical place to start the
identification process, but have some concerns about the lack of
permanence of the label once the sticker is removed.
In addition, both organizations promised to encourage greater
support for the PAL program from independent labels. NARM used the
opportunity of a joint convention with the Association for Independent
Music (AFIM) in March to reinforce the message. Retailers were invited
to notify RIAA regarding music videos that should be carrying the
Parental Advisory Logo.
Discussions regarding the coordination of PAL placement guidelines
and guidelines for retail price stickers are ongoing. The current
guidelines for PAL placement from RIAA instruct labels to place the
logo in the lower left corner of the front face whenever possible. NARM
guidelines ask retailers to avoid placing price or other stickers over
the Parental Advisory Label. Despite the two guidelines, the consensus
of both groups was that keeping the labels separate while not covering
up the title of the work or imposing rules on artists that could not be
followed 100% of the time posed a challenge. NARM was asked to review
the placement of advisory information on movies and games to determine
how the placement issue is handled for those products. We've learned
that the MPAA rating for both VHS and DVD is on the back face of the
product. While the icon for video game ratings appears on both the
front and back face, the important content descriptor information
appears on the back face. With that information as background, it would
appear to make sense to move the placement of the PAL logo to the back
face of music products so that the consumer can begin looking for
rating logos in a consistent place. If retailers kept their pricing
labels on the front face, any possibility of accidental covering of the
PAL would be eliminated. This possibility is actively being discussed.
educational efforts
Retail Education
A number of activities have been initiated with the goal of
educating consumers about the Parental Advisory program. NARM's efforts
have also included a component which focuses on educating retailers
about the importance of the Parental Advisory Label program, how it
works, and how to support it. As was promised last year, NARM created a
section on our website devoted to the Parental Advisory Label program.
Posted on the site are a philosophical statement from NARM about the
value of the program and its importance to the public along with the
current guidelines for the PAL program. We also include a sample
descriptive statement about PAL for retailers to use in their stores or
on their websites, links to the RIAA page on the Parental Advisory,
links to parentalguide.org, (the site hosted by the entertainment
companies covering music, games, and movies), and a copy of the reports
from the FTC on Marketing Violent Entertainment to Children. These
published materials are supplemented by updates in our electronic
newsletter, and verbal presentations at meetings of the NARM Board of
Directors and the Retailers Advisory Council.
Consumer Education
Educational efforts to consumers this past year included the
ongoing NARM/RIAA merchandising program of posters and counter cards
depicting the PAL logo with an explanatory paragraph. This year the
pieces were revised to include the URL to the parentalguide.org site.
Nearly 8000 pieces of material were shipped to retail and wholesale
locations prior to the important holiday selling season. These
materials were supplemented with the addition of a new brochure
describing the PAL program in more detail. Nearly 100,000 of these
brochures were made available to the public through 4, 447 stores
beginning last September. We are in currently in discussions with RIAA
about the possibility of a reprint and ongoing distribution of the
brochure. In addition to the specific programs run by NARM, we know
that a number of our member companies created their own in-store
materials regarding PAL and other rating/advisory programs. Several
companies either conducted in house training programs for store
personnel or reissued policy statements on the program in the fall to
help insure consistent dissemination of information and execution of
policies.
Advertising
Another important component to many retailers efforts regarding the
PAL program was a review of existing advertising programs and policies.
The very helpful feedback that NARM received last summer regarding
specific approaches to the incorporation of the PAL logo in print,
radio, TV, and internet advertising was passed on to retailers and
wholesalers in September, 2001. Many retailers have reported that they
have revised their internal guidelines in response to this feedback and
these changes should be readily apparent in these media. One area in
which many retailers continue to disagree with both the FTC and the
RIAA relates to the need for the PAL to appear on every screen
throughout a sales transaction online. While some retailers have
adopted this approach, others believe that showing the PAL logo at the
initial depiction of the album graphic, and again at the point of sale
provide sufficient warning to consumers about the lyric content of the
title.
Sales Policies
No retailers have reported a change of policy regarding the sale of
music carrying the Parental Advisory Label to individuals under age 17.
Those companies that decline to stock titles with the PAL continue to
believe that approach best serves their clientele. Those that had
restrictive sales policies prior to the FTC report continue them, and
those that do not believe such policies work for their customers have
not adopted them. Most retailers continue to express concern about the
appropriateness of the FTC recommendation for restricting sales of PAL
titles to those under 17 when the RIAA guidelines do not provide for an
age based program. The only significant change in this area is that
more companies are stocking edited versions of titles with the Parental
Advisory Label now that such titles are identified with their own
label.
The Parental Advisory Label program is now 17 years old. Like any
teenager, it's learned a lot, but has room for improvement. We continue
to believe that most parents appreciate the industry's efforts to
inform them that certain titles may not be appropriate for some of the
children in their families. We also believe that they appreciate having
a choice in the marketplace regarding how different retailers stock,
merchandise, and sell Parental Advisory Label products.
Thank you again for the opportunity to recap our efforts in this
area for the FTC. We welcome any comments or information that you'd
like to share with us.
Sincerely,
Pamela Horovitz
cc: Alan Malasky
John Mitchell
David Schlang
Mr. Upton. Thank you very much.
Mr. Severson.
STATEMENT OF GARY SEVERSON
Mr. Severson. Mr. Chairman, members of the subcommittee, I
am Gary Severson, Senior Vice President and General Merchandise
Manager for Wal-Mart stores. I have a written statement that I
would like to have introduced into the record.
My predecessor, Doug McMillon, testified before your
subcommittee last July on the--last year on the issue of the
entertainment industry's efforts to curb children's exposure to
violent content. I understand the hearing today is a follow-up
to the July hearing and the purpose is to review the recordings
industry's marketing practices.
Before addressing the marketing issue, I will briefly
describe Wal-Mart's approach to our customers and entertainment
ratings.
At Wal-Mart, we have worked hard to create and protect our
relationship with our customers. They are and always have been
the guiding force behind our decisions. We have created stores
that offer every day low prices, quality merchandise, and fast
and friendly service. Our associates have also been involved
with the individuals and families in our communities. Last year
alone, we supported our communities with $190 million in
charitable giving. Ninety-seven percent of that money was
donated at the local level through our stores. We aspire to be
an important part of our customers' communities and to provide
products and services that raise the standard of living for
American families.
Consistent with that aspiration, Wal-Mart attempts to sell
entertainment product in a way that allows our customers to
make informed decisions and to exclude from our shelves
merchandise that a majority of our customers would find
objectionable due to its sexually explicit or extremely violent
nature. The challenge we face is in our ability to, one, help
the customers understand what they are buying and, two, to
determine which products they find objectionable either before
and in some cases after we have made it available for purchase.
At times, this is harder than it sounds due to the subjective
nature of some of these decisions.
Any success we achieve in these efforts is accomplished, in
large part, by following rating systems established by the
entertainment industries. We have rating systems that we follow
in the sale of movies, video games, and computer software.
As I indicated in my written testimony, we use rating
systems to enforce our policy on selling age-restricted
products to customers under age of 17. Our customers must be 17
or older to purchase R-rated movies and M-rated video games and
computer software. We use register prompts to verify the age of
a customer.
Unfortunately, in the case of music, the recording industry
has not provided us a ratings system to follow. The music label
has determined on a title-by-title basis whether to attach a
parental advisory sticker or not. We refer to this as stickered
music; and, today, we do not carry parental advisory stickered
music in our stores.
The music labels make edited versions of some stickered
music available to us. We do carry most edited versions of
music on selected product. This product is labeled ``edited
version.'' Our buyers for music determine which music to carry
based on their best judgment. As we testified last year, from
our perspective, an unbiased, standardized rating system would
help our customers determine whether specific music is
appropriate for their needs and taste.
If the recording industry adopted a rating system, we would
educate our customers about the rating system, train our
associates about our company policy on the sale of rated music,
and would most likely restrict the sale based on the rating. We
would enforce the restriction through a register prompt as we
do with R-rated movies and M-rated games.
The marketing of music is generally a partnership between
the recording industry and the retailer. The recording industry
will fund the marketing and provide the content in coordination
with us. As for Wal-Mart, our marketing of music is much more
limited than that of other retailers. Our main approach is to
market the music in the store and drive customer traffic to the
entertainment area where we do display the music. Occasionally,
we will do television and print advertising of title-specific
music. We control the content of the advertising and try to
ensure the ad is appropriate and appealing to our customers.
While we use our best judgment at Wal-Mart on which items
we carry and while we work hard to restrict the sale of certain
products to those under the age of 17, it is simply not
possible to eliminate every image, word, or topic that an
individual might find objectionable. In addition, we are the
first to admit our systems and our associates, good as they
are, are not infallible. However, it is our sincere hope that
our policies make it possible for our customers to make
informed decisions and for them to feel we are handling
entertainment product in an appropriate matter.
At this time, I am pleased to answer any of your questions.
Thank you.
[The prepared statement of Gary Severson follows:]
Prepared Statement of Gary Severson, Senior Vice President and General
Merchandise Manager, Wal-Mart Stores, Inc.
introduction
Mr. Chairman, members of the Subcommittee, I am Gary Severson
Senior Vice President and General Merchandise Manager, for Wal-Mart
Stores.
My predecessor, Doug McMillon, testified before your subcommittee
in July last year on the issue of the entertainment industry's efforts
to curb children's exposure to violent content. I understand the
hearing today is a follow-up to the July hearing and the purpose is to
review the recording industry's marketing practices.
Before addressing the marketing issue, I'll briefly describe Wal-
Mart's approach to our customers and entertainment ratings.
At Wal-Mart, we have worked hard to create and protect our
relationship with our customers. They are and always have been the
guiding force behind our decisions. We have created stores that offer
every day low prices, quality merchandise, and fast and friendly
service. Our associates have also been involved with the individuals
and families in our communities. Last year alone, we supported our
communities with $190 million in charitable giving. Ninety-seven
percent of that money was donated at the local level through our
stores. We aspire to be an important part of our customers' communities
and to provide products and services that raise the standard of living
for the working families of America.
Consistent with that aspiration, Wal-Mart attempts to sell
entertainment product in a way that allows our customers to make
informed decisions and to exclude from our shelves merchandise that a
majority of our customers would find objectionable due to its sexually
explicit or extremely violent nature. The challenge we face is in our
ability to 1) help the customers understand what they are buying and 2)
determine which products they find objectionable either before, and in
some cases after, we have made it available for purchase. At times,
this is harder than it sounds due to the subjective nature of some of
these decisions.
Any success we achieve in these efforts is accomplished, in large
part, by following rating systems established by the entertainment
industries.
movies
In the case of movies, we use the MPAA, Motion Picture Association
of America, voluntary ratings (G, PG, PG-13, R, and NC-17) as we make
decisions about which movies to carry. For example, we do not carry NC-
17 rated content. We do carry G, PG, PG-13 and most R rated content.
Our buyers for movies determine which movies to carry based on their
best judgment. They use their knowledge of our customers and the
customer response to the movie in theaters to make a decision on a
specific title. We then utilize a register prompt at our cash registers
to verify the age of the customer buying the R rated movie. In
accordance with our policy only those customers who are age 17 and
above are permitted to purchase R rated movies.
We believe that because MPAA ratings have been in consistent use
since 1968, there now exists a widespread customer understanding of the
ratings. As a result, we have few customer questions about the ratings
themselves. Our customers seem to clearly understand what they are
purchasing.
video games and computer software
In the case of video games (for example, Sony Playstation or
Nintendo games) and computer software, we use the ESRB, Entertainment
Software Rating Board, ratings (EC, E, T, M, and AO) as we make
decisions about which products to carry. We do not carry software rated
adults only (as rated by the ESRB). As a rule, we do not carry Parental
Advisory stickered product. We do carry EC, E, T, and select M titles.
Our buyers for video games and computer software determine which M
rated products to carry based on his or her best judgment. They use
their knowledge of our customers to make decisions on specific titles.
We then utilize a register prompt at our cash registers to verify the
age of the customer buying the M rated product. In accordance with our
policy only customers who are age 17 and above are permitted to
purchase M rated titles.
Since the ESRB has only been in existence since 1994, we have taken
several steps to educate our customers on how to interpret the ratings
including in store signing; print advertising; and associate training.
As a specific example, Wal-Mart stores display in store signing which
explains the ESRB ratings. For video games and software, in store
signing is placed in either the glass case or section where the item is
stocked and explains the ESRB ratings to customers.
music
In the case of music, the recording industry has not provided us a
rating system to follow. The music labels determine on a title-by-title
basis whether to attach a parental advisory sticker or not. We refer to
this as stickered music. Today, we do not carry parental advisory
stickered music.
The music labels make edited versions of some stickered music
available. We do carry most edited versions of music on selected
product. This product is labeled ``edited version.'' Our buyers for
music determine which music to carry based on their best judgment. As
we testified last year, from our perspective, an unbiased, standardized
ratings system would help our customers determine whether specific
music is appropriate for their needs and tastes.
If the recording industry adopted a rating system, we would educate
our customers about the rating system; train our associates about our
company policy on the sale of rated music, and would most likely age
restrict the sale based on the rating. We would enforce the restriction
through a register prompt as we do with R rated movies and M rated
video games.
marketing of music
Marketing of music is generally a partnership between the recording
industry and the retailer. The recording industry will fund the
marketing and provide the content in coordination with the retailer. As
for Wal-Mart, our marketing of music is much more limited than that of
other retailers. Our main approach is to market music in a store and
drive customer traffic to the entertainment area where we display the
music. We display the music to encourage sales. Occasionally we will do
television and print advertising of title specific music. We control
the content of the advertising and try to insure the ad is appropriate
and appealing to our customers.
conclusion
While we use our best judgment at Wal-Mart on which items we carry,
and while we work hard to restrict the sale of certain products to
those under the age of 17, it is simply not possible to eliminate every
image, word or topic that an individual might find objectionable. In
addition, we're the first to admit our systems and our associates, good
as they are, are not infallible.
However, it is our sincere hope that our policies make it possible
for our customers to make informed decisions and for them to feel we
are handling entertainment product in an appropriate manner.
At this time I am pleased to answer any of your questions.
appendix
MPAA (Motion Picture Association) Ratings.
G (General Audience)--All ages admitted.
PG (Parental Guidance Suggested)--Some material may not be suitable
for children.
PG-13 (Parents Strongly Cautioned)--Some material may be
inappropriate for children under 13.
R (Restricted)--Under 17 requires accompanying parent or adult
guardian.
NC-17--No One 17 and Under Admitted.
ESRB (Entertainment Standards Ratings Board) Ratings.
EC (Early Childhood) content suitable for persons ages 3 and older.
E (Everyone)--Content suitable for persons ages 6 and older.
T (Teen)--Content suitable for persons ages 13 and older.
M (Mature)--Content suitable for persons ages 17 and older.
AO (Adults Only)--Content suitable only for adults.
Mr. Upton. Well, thank you all.
At this point, we will go to the questions from the
members; and we will limit the time for us to 5 minutes. We may
have a second round, depending on where things stand.
Again, I know that Chairman Tauzin is intending to come
downstairs.
I go back to my statement, as a dad of an 11-year-old and
an almost a 15-year-old, I know that when I go to purchase
music at any store, I would say that very few parents actually
take the time to read the lyrics before they buy the CD packet.
First of all, the lyrics are inside the wrapper, which
takes a little while to get off, I would note. And sometimes
they are in the long box so they make sure you don't put it in
your coat jacket. For those that try to shoplift those things
out, it is obviously more difficult. But it is also nearly
impossible then to read the lyrics.
As a dad, I think it is much better to simply look to see
if in fact there is a warning sticker on the outside,
particularly if your kids are going to be with you or that is
the music that they would like to hear.
Now, Mr. Peeler, you said in your opening statement that
movies and games have made substantial improvement from--over
the last couple of years, but the music industry has made some
progress but not a lot. Now, I don't know if you were aware of
BMG's new announced policy, and I would be interested to know
what you think about their--if all studios have or recording
industries have followed their lead, if that would
substantially change your report card. My guess is that it
would. Is that correct?
Mr. Peeler. Well, in our report, we are looking at what the
industry self-regulatory program is and whether members have
complied with it. We cited the BMG initiative in our report as
a positive development. We look forward to seeing it rolled out
in the marketplace.
From talking to parents, we think that a lot of parents are
like you; that they would like more information about the basis
for the parental advisory on the album.
Mr. Upton. As a dad, I would say that what BMG has done is
perfect. I don't think they need to go beyond that, and I think
that it works well.
Mr. Simmons, I don't know if you have seen precisely what
BMG has done. But what are your thoughts? It is actually on the
screen behind you.
Mr. Simmons. Okay. You know, I have seen it, and I think
it is good if----
Mr. Upton. I mean, we are not talking censorship.
Mr. Simmons. No, I got it. I think that it is good and is
acceptable to me. I don't believe it should be standardized.
And let me say that, you know, it is very difficult to measure
words. If I were to say--for instance, if I were to say God,
everyone in this room would have a different image. Some might
even be offended. So it is very--you know, in words and in
books and in poetry, which is what rap music and even song is
written in that kind of form, it is poetry. And it conjures
up--you know, it is about the imagination. And, you know, what
you hear--and the whole rating system for me--for instance,
what most people on this panel might refer to as a gangsta
rapper, artists like DMX, I find him quite inspirational, and I
think the artists and the people who understand his music feel
that way about him.
I believe that there is such a cultural divide that the
people whose job it has been to make these decisions and the
people--even the industry--and the people who are listening on
this panel don't speak the language of the young people. People
are so offended sometimes by profanity, what they refer to as
profanity, the language, that content and real--the meaning of
these songs is left un--I mean, completely not understood.
Misunderstood.
So I think if BMG wants to do that, since they have a small
amount of relevant hip hop music, I mean, that is fine. I don't
think at Vivindi where we have--Def Jam records, where we have
most of the hip hop music, it is a good idea.
I think that we--parents--it says parental advisory, we
have gone a long way to change since the last time we spoke. I
mean, we have made sure that every radio commercial, television
commercial, or any kind of a promotion is very clear or--
sticker music, what the stickered music is. And I think that
that is a good stand. We have all agreed to do that. And I
think that is a lot, really. Because still there is, you know,
such a--there is such different meanings depending on who is
listening to most of this poetry. And the audience is getting a
diverse group of ideas and they are important ideas. They are
voices for people who would be voiceless.
The last time I was here, Senator Thompson made a point
because he had a cultural--he had a certain opinion. He said,
Saving Private Ryan was a strong movie. It taught young people
about war. And he thought that every young person--that was his
opinion, and he made it clear that that was only his opinion--
that every young person should see that movie so they would
understand war.
Well, I think it is important that every young person hear
Snoop Dog, because I think it is a war that is going on down
the block in some cases. I think it is important that kids in
Beverly Hills hear--since mostly rappers' voice is for
voiceless people, not only in the ghettos now, the urban
environment, it is the trailer parks that have become very
popular and a group of people who haven't had a voice in a long
time.
And now you have the trailer parks and the projects
collaborating and having a dialog, and you have the kids in
Beverly Hills riding around listening to them. And they are
getting to understand the plight of those people who are in the
poor--or I mean in these conditions. And that is the profanity,
is the condition that they are living in, not in some of the
words that people find offensive. And that is my opinion. So I
know that that is not something you share, but language is a
lot less important, again, than the content.
And I think that when young girls who are listening to the
songs--I know that there are some very sexist songs out there.
I know one thing in the projects, no one wants to be the daddy
of the baby's momma. Madonna had a song, ``Papa Don't Preach,''
before Hip-Hop, ``I'm having my baby.'' Nobody in Hip-Hop or in
the project is bragging about having a baby today, because what
is being said in the back rooms now is clear to them, and there
is an opinion about it.
About drugs, they talk about drugs, and I know people think
that they influence people, but mostly it is against drugs, and
mostly it is the effect of drugs that they talk about. But you
may not hear the same thing that most of the Hip-Hop audience
hears. I think it is important that there is truth, have an
opportunity to come out, and I think that we shouldn't worry
about the reflections that come, because the music is like a
reflection of our realities. Breaking the mirror is not going
to help the problems. When they said ``F'' the police,
everybody got in an uproar. It called attention to what was in
Compton at that time, a terrible situation.
I think it is very, very important that these kids have a
chance to express themselves, and I think that we have a very
strong rating system. And I think that--I commend BMG on taking
the initiative. I don't think it should be something that
everybody has to accept.
Mr. Upton. My time has expired, but we will come back.
Mr. Gordon.
Mr. Gordon. Mr. Peeler, you stated that in this checklist
or this criterion that you are using for a report card, that
the three groups--the motion picture industry and the video
games and the recording industry--it all made progress, but
that the recording industry has made less progress.
What are some of the areas that would be applicable that
these other groups are doing in terms of reducing the marketing
to minors that, in your opinion, that the recording industry
could do?
And, Ms. Rosen, if you would listen to that, and I would
like your opinion as to whether you think those are valid, and
if so, what are you doing to meet that?
So, Mr. Peeler, we will start with you.
Mr. Peeler. Again, our tracking of the appearance of the
advisory label and advertising has shown considerable progress
over the last 2 years, but our most recent numbers show only
about half of the ads contained--accurately reflected the
parental advisory label. I think that the industry's current
efforts to monitor that and increase that are a very good sign.
We would like to see those numbers higher.
I think the two big areas where the Commission has
expressed concern are, first, the area that the Chairman was
just raising, that we think it would be a better system if
there was information about the reason for putting the parental
advisory label on the recordings. The second big area has been
that the current system does not include any restrictions on
marketing of the product directly to children. We believe that
the movie and game industry systems, which do include
restrictions on direct marketing of rated products to children,
is a better model.
Mr. Gordon. Okay. So what are they doing? More
specifically, how are they, the motion picture industry, how
are they limiting this marketing to minors?
Mr. Peeler. Well, they have come up with voluntary industry
self-regulatory guidelines which limit where they will place
their ads in an attempt to reduce advertising, or programming
or in publications that are very popular with teens. We have in
our report suggested that they could do a couple of things
better in that area, but they certainly have a program, and our
review indicated that their members are complying with it.
Mr. Gordon. Ms. Rosen, is this an adequate analogy? You
know, is there--the motion picture industry, are they smarter,
or are they more socially conscious than the recording
industry, or is it just different?
Ms. Rosen. It is not analogous at all, and I think there
are two issues. Let us deal with the age-based marketing
restrictions that Mr. Peeler referred to.
We are the only industry that has edited versions of music.
So we have a choice. When you have edited versions of music on
the radio and edited versions of videos on MTV--and the only
place this ever comes up is on MTV and BTV. Frankly, the record
companies don't advertise as significantly as other industries
do. We do more marketing, street marketing, things like that,
than we do advertising.
But if you market--if you are advertising an edited
version, you are recognizing inherently that there is a
differentiation between music and other content products,
because the edited versions will still have the same music,
same artist, similar sentiments, but the explicitness will be
edited out.
And so what's better? We have this constant discussion with
the FTC. Not advertising the edited version means that people
don't know that there is an edited version available. We came
to the conclusion that advertising the edited version was more
informative and more productive for both parents and young
people than not advertising at all, and the only thing that
people would understand is that there is an explicit version.
So it is a very different industry. It is not analogous to
the situation in----
Mr. Gordon. Well, you have edited versions of movies.
Ms. Rosen. No, they don't.
Mr. Gordon. When you go into----
Ms. Rosen. In airports, in airplanes, but----
Mr. Gordon. I mean, when you--if you go in to rent one, you
will see sometimes that they say, this is an edited version.
Ms. Rosen. I actually have never seen that.
Mr. Gordon. Haven't you?
Ms. Rosen. I have actually seen director's cuts, which is
the opposite, where they put in all the stuff they have taken
out. Television, they edit out the same way they do with music
broadcast, of course. So, you know, is the notion that there is
an edited version--but they are not selling them commercially.
I think that is what we are talking about. Broadcast is fine.
That is not an issue. MTV edits their videos. Radio edits their
songs, so there is no sort of, you know, innocent exposure in
music.
If you want the explicit version, you have to actually
secure it.
Mr. Simmons. This may not be helpful but it is a point I
made earlier, if you don't mind if I interject here. I want to
add, you know, when you edit a song or a movie, you don't take
out the content. You just take out a word, you know, a
language. I mean, we are all--the whole discussion, when--what
is--you know, in all--every book that you can think of, any
good book, the Sutras, Yoga Sutras, or the Bible, or the Koran
or the Tora, nobody ever talks about language. It is what you
intend to do. It is--you know, first rule--nonviolence. You
know, that is one of the first rules, spiritual rules, I mean,
for any--you know, wherever it is that you practice, you know,
your higher self.
Why do we think when we take a word out and the whole idea
is still communicated, the whole thing is--I mean, we don't
have a--the judgment that we are making----
Mr. Gordon. Well, the response might be this, my response
might be this: There is a different responsibility in terms
of----
Mr. Simmons. This is cultural. The whole discussion is
cultural.
Mr. Gordon. I think there is a different--throughout
cultures, there is a different responsibility to minors versus
adults, and I think--I mean, Spike Lee, you know, has been
successful in conveying a message, and somehow he lives within
the motion picture industry's effort not to censor. But to rate
in an effort to give parents tools, I don't think anybody is
talking about taking out words. The question is: Are you going
to give notice of the words beforehand? So we should not think
this is editing anywhere.
Ms. Rosen. Let me respond, if you would, Congressman, to
the content distributor, because Mr. Peeler raised two issues.
One is that we don't prevent advertising in vehicles where
young people go. I have already said we made the decision that
it is better to advertise that there is an edited version
available, because that is what puts pressure on retailers and
others to go out and pursue the edited version.
On the content descriptors, we are in a very different
world than motion pictures. The motion picture guidelines
basically say, if you have these words and it is showing these
naked body parts or this level of blood and violence connected
with these words, then it gets this rating. Words don't provide
that. Words are simply interpretative. They are subjective.
That is why content descriptors are not appropriate for music.
BMG is undergoing an experiment. Everybody is looking at
BMG's experiment, but it is worth noting that as fantastic as
BMG's announcement is, people should know that the only album
that has actually come out from BMG so far has all of the
content descriptors that our logo already has. There is one
record. It is clips, I think. You know, it says it is strong
language, sexual and violent content. Guess what? That is what
every single retail store, that is what every single
advertisement, that is what every single Web site already says
the logo means. The parental advisory is a notice to consumers
that recordings identified by this logo will contain strong
language or depictions of violence, sex or substance abuse.
There is no mystery--I find this a bit of a red herring--there
is no mystery about what this means. We constantly advertise
it.
Mr. Gordon. You might--my time is up, but just for your
information, Albertson's now is selling edited versions of
movies.
Mr. Upton. Mr. Towns.
Mr. Towns. Thank you very much, Mr. Chairman.
Let me begin by just asking you, Mr. Severson and also Mr.
Marmaduke, you are saying to the committee that the age-based
system is in the best interest of consumers. Who would enforce
such a system? Because it seems that those large companies and
those who own a number of stores having, you know, greater
resources to enforce such a system, while small music stores
like ones that are around in my district who are struggling to
stay relevant due to the illegal downloads, might not have the
luxury nor the resources to enforce such a system.
Mr. Severson. I think that we are calling for more age-
based to help the parents to be better educated to determine
for their minor children what a better system would be. The
enforcement of that can be systematic, but also it requires on
human beings at the cashier level to be able to understand
policies and then enforce those policies. So we are calling on
a human element to make sure that while you can have a system
to help support that, that even in small companies where you
might not have those systems, you still have to rely on the
cashier to enforce policies that an individual retailer might
set to determine age appropriateness.
Mr. Marmaduke. Well, Congressman, I would say that the
contrary would be the case in my experience. And that is that
the small retailer generally is the proprietor who is in charge
of his store, and he knows his customer base better than any
chain will ever know their customer, and so enforcement would
be actually easier for a small and local retailer if they
elected to do so.
Mr. Towns. I was sort of looking at it a different way. I
was thinking that a store like Wal-Mart that sells everything
else, you know, that they could have a different attitude about
it. You know, I was thinking--you know, because you sell all
kinds of goods, so therefore, you know, you could take a hard
line and whatever on anything, because that is not really, you
know--it just happens to be a minor product that you are
involved in.
Mr. Severson. I am not sure I understand the question.
Mr. Towns. I am saying to you that Wal-Mart could take a
position that a small store could not take, you know, in many
instances, because the fact that this is basically what they
are selling. You are selling a lot of different products. So,
therefore, you could draw the line and say, no, we are not
going to do this, we are not going to sell this or whatever,
because of the fact that that is just a minor item with you in
terms of what you are selling.
Mr. Severson. Well, we are not suggesting that every
retailer has to do a certain thing; that every retailer sets
their own policies in accordance with what they believe their
customers want and need. And we would be setting the policy
that we believe our customers would expect us to do, while the
individual company could set their own policy and enforce it as
they wish.
Mr. Towns. The age-based system, what would--let me put it
this way. What type of content would Wal-Mart not sell?
Mr. Severson. That is a very subjective question to ask,
and there is no simple answer where I can give that, but we try
and represent the interests of the majority of our customers.
Okay? And if we believe that the majority of our customers
would expect to find this product on our shelves, then that is
what we want to represent.
Now, if there are certain products that might have an
explicit nature to it that our customer might expect, we would
also hope to be able to restrict that sale to minors, so that
parents can make that choice and determine whether it is
appropriate for their children or not.
As far as what we--I mean, we have stated policies that we
will not carry X-rated movies, we will not carry explicit
magazines, we will not carry adult-only video games. Those are
ratings that exist that we have determined that we are not
going to be involved in. Everything after that becomes
subjective to a point where you determine and you try and make
the best choice you can, based on what you believe your
customer wants and expects.
Mr. Towns. Mr. Simmons.
Mr. Simmons. I was going to ask what kind of music wouldn't
you sell. You mentioned four different kinds of visual
products, but you didn't mention what kind of music. And that
is an important question, since we are here addressing the
music issue today. What kind of poetry would you limit? So that
is really the question I think he was asking.
Mr. Severson. Well, our current policy states that we will
not carry parental-advisory-sticker music, and that is our
current policy on that. That could certainly change if there
were to be a change in the rating system that would become age-
appropriate. That would be consistent with the other
entertainment products that we do carry that we do have a very
consistent policy on.
Mr. Simmons. Would you, for instance, not carry music that
describes nudity, or do you already carry tons of product that
describes nudity and describes--you probably do, I guess?
Mr. Severson. Yeah. I don't pretend to understand every
single lyric that is on every single album in every single one
of our stores, but we rely on the industry's policy currently
of parental-advisory-stickered music as our policy to determine
what we carry. Thank you.
Mr. Towns. You know, I think that what we are really saying
here is that, you know, different words have different meanings
based on your life experience, and I think that, you know, that
is something you just can't lose sight of. And, of course,
these young people, in many instances this is what they are
doing; they are expressing themselves out of their own little
life experience. And, of course, we cannot lose sight of that,
and that is something that I think that has to be discussed
even more, because what is offensive in one sense might not be
offensive in another. And that is also a key issue that I think
we need to spend some time talking about, because the
background, here again, makes a difference in terms of the
person's definition of, you know--and it could be different
from yours, it could be different from mine.
But the point is this: I think that this is something that
we should not ignore and cannot ignore. And of course a lot of
times, you know, once you stop and you listen to it, then you
find out that maybe it is not really that, it is something
else.
So, you know, Mr. Chairman, I think it is good that you are
having this hearing. I think that this is something that we
need to have a tremendous amount of dialog around, because this
is a very serious issue. And I think that the interpretation,
you know, many times is just so different, you know, based on
the person's background.
I yield back.
Mr. Upton. Ms. Harman.
Ms. Harman. Thank you, Mr. Chairman.
I first want to say that the participation of Mr. Simmons
on this panel is very helpful to me. I think his testimony was
important. His comment about speaking truth to power is
extremely important. We should never forget that we don't have
all the answers up here, and we do need to hear from artists
and others about how they view all sorts of situations.
And I want to say to our colleague, Mr. Towns, that many of
the points he has made this morning I feel are valid, and while
I may make choices for my kids that he might disagree with, I
think that is also protected under our Constitution. And I
think that it is very important that we do have a First
Amendment and that we can hear different voices and that one
person's definition of truth may not be another person's
definition of truth, and I think that is healthy in a
democracy.
At any rate, I wanted to follow up on a comment that Ms.
Rosen made at the end of her testimony. She didn't expand on
it, but I think her point was that a number of these peer-to-
peer networks don't have any guidance for consumers. They also
pose other problems, but I don't think this is a hearing on
digital rights management. I have strong views on that, but I
will save them for another forum. But I am interested in these
peer-to-peer networks as they affect the subject we are talking
about today, which is advice to parents.
And so I thought I would ask Mr. Peeler for his views on
this and whether he has looked at this and what he thinks ought
to be done about this. And then I would like Ms. Rosen to
comment on whatever he might say.
Mr. Peeler. Well, we certainly think that it is an
important music distribution channel, and we certainly intend
to include it in this ongoing review that we are doing right
now. It is an issue that is different from the issue that we
have looked at in the past, that focuses on what types of
active marketing is done for the music. Kids have to learn
about the music from some source, and what we have been looking
at is what advertising and what marketing leads kids there.
Ms. Harman. And just let me follow up for 1 second. Her
claim was that a lot of legitimate companies are involved in
some of this advertising on these P-to-P networks. Have you
found that to be the case?
Mr. Peeler. I don't believe we have looked at it yet. As I
said, that is one of the issues that we are looking at in this
current review.
Ms. Harman. Okay. Thank you.
Ms. Rosen.
Ms. Rosen. The United States Air Force, Orbitz, Comcast,
significant companies are advertising on these networks. I
think it is--you know, it is not just another distribution
network. I think we are finding that in targeted audiences, it
is a primary axis. And the issue is if a kid hears a song on a
radio, which is still where the majority of people hear new
music, and then says, oh, I like an artist, what our statistics
are showing us is they don't go anywhere else.
So they are getting it from the radio, and they are going
to a peer-to-peer network, and they are getting that song or
other songs by similar artists. There are share files where you
go into the drive of the person who you have pulled down the
song that you like and say, ``Show me what else you have.'' So
it is not that they are learning about it from reading the New
York Times on Sunday, which I noticed was a big criticism in
the FTC report. It is that they are learning about it through
these networks and through the sales point, is normally where
you would have that sticker go all the way through. That is
where we have been careful that sticker goes all the way
through.
If I could just beg your indulgence, Congresswoman, on one
point. I think that the committee would really benefit from
thinking about the testimony of these two really thoughtful,
successful retailers, because both of them are good retailers
and successful companies and have been in the business a long
time.
Hastings Records, run by Mr. Marmaduke, uses a sticker as a
sales restriction tool. They have other information in the
sticker for their constituents to say, you know what, if you
are under 18, you cannot buy it. Wal-Mart is saying, oh, no,
no, no; we need more information to use this as a sales
restriction tool. But Hastings is being pretty successful doing
it.
And so I think it is important to recognize when people are
so--are cynical and accuse us of just ignoring what would be
the right thing to do for profit, Wal-Mart, which is 25--and
Kmart, which is 25 to 30 percent of all music physical sales,
is telling us you would sell more music if you gave us a rating
system.
The fact that the industry isn't doing it, you know--and
this gets to Mr. Shimkus's point. The fact that we are not
doing what everybody says they want us to do maybe actually is
based on some level of principle and rationale, on the
substantive artist's view, as Mr. Simmons has said.
Retailers are telling us we would sell more, although other
retailers are telling us they think the tool is just fine. This
is not a black-and-white issue.
Ms. Harman. My time is up, Mr. Chairman, but I would just
comment that I don't think it is black and white either. I
think that most of the issues we address in this committee
involve shades of gray, and making a better decision is a hard
thing to figure out often. And often regulation is not the
answer, as I think it is not the answer here. But I--if I were
cynical, I wouldn't be in this line of work. I am not cynical,
and I think that we are looking at some very smart people who
are testifying before us and who are searching for answers, not
just for our kids and not just for other people's kids, but for
their own kids.
So I see a bunch of responsible parents out there, and I
think that as we search for answers together, we need to be
very, very careful that we don't define truth in our own way
and ignore truth as others define it. Thank you.
Mr. Upton. Mr. Simmons, did you want to just respond to
that?
Mr. Simmons. The one thing I want to make a point--and I
heard the gentleman say about, you know, the will of Congress
to act on legislation that will protect this industry and that
there was some connection. And the point--I took offense to it,
but the thing to realize is that in a few years if we don't
start to protect ourselves, if the Congress doesn't move to
protect us, we won't have an industry. It will be out of
business, I mean, in a few years.
The dramatic drop in record sales is--if we don't address
it now, there will be no way for any of us to be in business,
and I think that, you know, that is--we know that it is illegal
to steal people's copyrights and take advantage of people's
music or trade it, and we really need to address it. It is a
separate issue, but it is certainly one I would like to bring
up, because it really is the end of our industry as we know it.
I think my company is one of the last really profitable
ones. Everybody has taken a tremendous downturn, more than the
economy, much, much, more than the economy, and we have what
has traditionally been a recession-proof business; not only
music, but it is small--this kind of entertainment. But we are
almost out of business, and we really need to move to protect
this industry, and I hope it is not tied to whether or not we
can censor the music.
So I just want to make that comment. Thank you.
Mr. Upton. Again, I just want to reiterate that I don't
think any member wants to censor music. That is the furthest
thing from any of our minds, and I just want to give you that--
--
Mr. Simmons. I am sorry. I didn't mean to--but we do have
to address that issue. That has got to be one of the most
important things if we are going to have a record industry. If
Time Warner Music and Vivendi Music and these companies are
going to be in business at all, we have to address this issue
immediately.
Mr. Upton. Ms. Rosen, you said that there was no mystery
surrounding the numerous reasons why it wouldn't go to the more
expansive label which we are looking at, which is behind you.
If that is the case, why not just go ahead with that type of
label? I have to admit I really not have seen your brochures in
different places where I shop for music in terms of what the
``parental advisory, explicit content'' means in terms of the
full description. And if there is no mystery behind it, why not
go along with what BMG has done?
Ms. Rosen. Actually, that--BMG has four different versions
of their sticker, and this is only one of them that says--that
has everything in there. And one just says language, and one
just says sexual content, and one just says violence. I don't
think it is very hard to figure out that maybe you would put
this sticker on every one, regardless of my personal view of
whether or not it is pejorative. I think the issue is how you
parse those particular content descriptors. And we have made a
significant progress in public awareness. Our surveys, and the
FTC's also, show well over 90 percent awareness of the parental
advisory logo and its meaning. So I don't believe that there is
this lack of understanding about explicit content.
Mr. Upton. Do you know if any of the member companies are
looking to follow what BMG has done? Do they see that as an
experiment, short term, long term? What is the reaction from
the other----
Ms. Rosen. I don't know of any other companies that are
looking to adopt it. I think people are just watching to see
what happens in the marketplace.
Mr. Upton. Mr. Marmaduke, Mr. Severson, do you want to
comment on what BMG has done specifically? Do you think that
has been positive? Dr. Rich?
Mr. Marmaduke. Well, since I don't have to sit there and
parse them out, I would say that it is probably viewed as
positive by us. But I would say that the current system seems
to work very well for us. We see no customer irritation at all.
Our customers seem to be very satisfied with the parental
advisory. If we come up with more information, certainly we
would not see that as a negative but, you know, it doesn't
seem--the system right now to us, from our customer's
viewpoint, doesn't seem to be broken. So we would just as soon
stay where we are.
Mr. Severson. And from our point of view, obviously it has
had no effect for us, because we do not carry the parental-
advisory-stickered music, but we do see it as a step in the
right direction and would encourage it to continue.
Mr. Upton. Dr. Rich.
Mr. Rich. I think that as Mr. Simmons said, this is all
about truth, and I think truth needs to go both directions. I
think that the artist should have the right and, in fact, the
obligation to speak the truth to all of us, so we know what is
going on in the streets. You know, I take care of the kids in
that street, and I am always learning more of the language as
it evolves, because it is a dynamic entity. And so I want to
emphasize it from our perspective. This is not about what is
offensive or hard to relate to or from another person's world.
It is about simply what is understood by the research in hand
to be potentially dangerous to their health and their long-term
health.
And I think that while there is information out there, that
there are edited versions--go into a store and try to buy one--
with the exception of Wal-Mart, it is exceedingly difficult.
And I have been laughed out of a number of stores, like don't
be ridiculous, we would never carry such a thing. So I think
that that is key.
I agree with the sentiment that if it is no big deal to the
BMG information, that it would be good to have it there. I
think that as much as people understand something to have a
simple binary system of on or off, parental advisory is less
informative to parents than one that tells them exactly what
they are buying here. And I think, to add to that, one of the
key features that is problematic for me as a parent and as a
pediatrician is that this is not an objective or unbiased
placement of the sticker. This is decided by the producer of
the music who stands to make or lose money, depending on
whether Wal-Mart puts it on their shelves or not.
Mr. Upton. Mr. Marmaduke, would you agree with the comment
with regard to the availability of edited----
Mr. Marmaduke. Well, he doesn't shop at our stores because
we have always had edited and unedited.
Mr. Upton. Remember, he is in the East. You are in the
West.
Mr. Marmaduke. So I think every retailer has their own
unique way of dealing with this issue, but we have customers
that desire both, and we have both for them.
Mr. Upton. Mr. Gordon, do you have other questions?
Mr. Gordon. I am sort of in Mr. Upton's situation, Ms.
Rosen. I am really not as familiar with the current system that
you have in terms of the advisory label. Could you tell me what
you do and how you arrive at those decisions?
Ms. Rosen. There is a broad series of guidelines that
accompany the logo that are available to sound recording
producers and actually are available on our Web site for the
public to see and critique, which they never do. And it
essentially gives guidance to a record company about what they
ought to look at to make a determination on whether or not to
put the sticker on it. So it is along the lines of if there are
explicit violent lyrics that could be associated mentally with
violent images, if there is language or profanity, things like
that.
Mr. Gordon. And does the record company or the artist make
that decision?
Ms. Rosen. Usually it is a joint decision, but the record
company has responsibility for the decision.
Mr. Gordon. So then I guess we are over this thing about
censoring, then, Mr. Simmons, because apparently you are
already making those decisions, and that is--but it is not
considered censoring, so I don't think that is really an issue
before us today.
Mr. Simmons. I am sorry. My point is that if we put strong
language, sexual and violent content, parental advisory,
explicit content on that sticker, it would not affect our sales
at all. Maybe we would sell more. And the reason we would sell
more, as this gentleman said, it would be easier for him to
determine.
So it is not--it is difficult to answer the questions in
the way that you guys are asking us. Again, these are words.
Mr. Gordon. Right. But apparently the word----
Mr. Simmons. Describing on NBC at 6 o'clock news with the
language that you guys are comfortable with is okay. Describing
a violent act, describing in words a violent act at 8 o'clock
prime time on Fox is okay. It is acceptable to you. But the
point I am making is----
Mr. Gordon. So are you opposed to what the industry is
doing now?
Mr. Simmons. I am not opposed to it. I am telling you that
it is not--once you put ``parental advisory, explicit content''
on there, again, it is not going to affect my business. I am
just recommending to you that we don't go any further. You
know, the FTC--or FCC has made choices about a women's lib
poem, and they sued the radio or threatened to close the radio
down if they played it anymore. I am just afraid of any more
involvement. I am concerned about the level of involvement in
pushing from this panel and other--you know, because I
believe----
Mr. Gordon. If I could--if I could just reclaim my time. I
have a limited amount of time.
So, Ms. Rosen, as I understand it, then, the industry is
already, if you want to--I won't say editing, but someone other
than the artist is already making some decisions now about an
advisory opinion, not changing the words or anything, but about
advisory opinion.
Ms. Rosen. Right. And I think your question was why can't
we go farther than that.
Mr. Gordon. Not necessarily.
Ms. Rosen. And parse out.
Mr. Gordon. I am not saying why can't you go further. I am
just trying to establish that there is already something being
done along that line.
Ms. Rosen. Yes. And I think what you have heard Mr. Simmons
say is really the--you know, welcome to my life. This is the
balance that the industry tries to achieve between our
responsibility to the community and to parents and extremely
strong feelings in the creative community about this issue. And
so the sticker itself and what it implies is specific enough to
be useful to retailers and useful to parents. After all, more
than 75 percent of them already approve of it. But it is
general enough to not be specifically pejorative and
interpretive about the lyrics.
And when you get to the level that BMG--of the BMG
proposal, some people are concerned it is too specific to say
that a song about rape is--is that sex, is that violence, is
that strong language? What is that? And ought the artist not be
able to say, you know, that it is explicit, it is mature
content, you make your own decision.
And so that is I think the raging analysis that constantly
goes on, and it comes, as has been said, from a place of
principle. What Dr. Rich just said is exactly wrong. Everybody
tells us we would make more money if we acceded to this. You
guys would like us better. It would be politically the right
thing to do. It would be financially the right thing to do. And
yet we can't go there, because it comes from a place of----
Mr. Gordon. The question before us then is not whether or
not there should be some arbitrary decision made as to whether
or not a label should be on a product. So apparently we are
all--at least we are not arguing that. The question is just
what level of specificity, and so that we have established
apparently that artists and the industry can accept some type
of a labeling process. Is that correct?
Ms. Rosen. Absolutely. And I think we have not just
accepted it, I think we have embraced it and promoted it very
effectively.
Mr. Simmons. I think if that--if you don't mind my
interjecting. We have made dramatic changes in the way that we
promote our labels and in the way that we market and include
the labels in the way we market our product. And we have gone
to such lengths to let people know that there is, you know,
some content that you may find offensive.
To go further is part of--is going down a path that I feel
is--that it is already a bit disturbing, because how do we then
define what is offensive? That is already a subjective issue
that we agree that anything is--because we can put a parental
advisory sticker on anything and sell more. Anything we smack a
parental advisory on sells more. Every time you attack rap
music or young people's music, whether it is jazz, blues, rock
and roll, or any new art form, Shakespeare and plays, whatever
you attack, whatever the censors are, people are uncomfortable
with the young culture attack, it sells more.
I remember I was so thankful when my brother ``Run'' from
Run DMC, all he ever sang about was God, school, and surviving
in the ghetto. He is now Reverend Run. The whole world attacked
him. His album sales went up. He was on the cover of every
newspaper as he came into town. And now people, of course, love
Reverend Run and Run DMC and they love the old songs. The old
songs are now American classics, and he listens to them
closely. And the album is about God, again, school, and higher
aspirations, higher American aspirations. That is what Run DMC
sang about, and they were gangster rappers in 1983.
Matter of fact, when I met Ben Chavis, who is now the head
of the Hip-Hop Summit Network, he used Reverend Run and Run DMC
to register voters. The board of directors almost fired him.
That was their rigid attitude about young people and their
voice.
Mr. Gordon. So are you following the RIAA's system of
putting the rating----
Mr. Simmons. Yes, sir. In fact, we at our summit----
Mr. Gordon. That doesn't stifle you?
Mr. Simmons. [continuing] we added to the way--we gave a
long list of additional ways to promote that system, and we
have been the ones who are promoting it to the rest of the
industry through our vehicles to accept this new, even greater
promotion of these labels. So we absolutely want to support
them. We just don't want to go down the wrong path.
Mr. Gordon. Sure. So I guess what we have established then
is that it is not censorship, and we ought not be crying
censorship to talk about----
Mr. Simmons. Well, there have been some instances where
industries have attacked artists in----
Mr. Gordon. But you are using a system of rating----
Mr. Simmons. That's correct.
Mr. Gordon. Okay. Thank you.
Mr. Upton. Mr. Towns, do you have additional questions?
Mr. Towns. Just one quick question, Mr. Chairman. To Mr.
Peeler, this billboard, how did you develop this?
Mr. Peeler. I am sorry; the billboard?
Mr. Towns. Yes. How did you develop it?
Mr. Peeler. This billboard here?
Mr. Towns. Yeah, yeah. Right. What I have----
Mr. Peeler. That is----
Mr. Towns. Actually I am talking about the July 15th,
2000--the billboard where you have the archives chart? Do you
see this?
Basically, you know--pass it to him.
I got that from someplace.
Mr. Peeler. This is, I believe, a private publication of
the Billboard 200. It is a listing of top-selling albums.
We used that information and other information in
connection with our December 2001 report to determine which
corporations to send requests to ask about specific marketing
practices.
Mr. Towns. Let me make sure I understand that.
Mr. Peeler. This is a published list of top-selling albums
that is published by the industry by Billboard.com.
Mr. Towns. Published by----
Mr. Peeler. It is published by an industry source,
Billboard.com.
Mr. Towns. You had nothing to do with what?
Mr. Peeler. We had nothing to do with that particular list.
We used this list, which is published by an industry trade
source, to develop the list of music recordings that we were
going to ask about the marketing practices of.
Mr. Towns. And----
Mr. Peeler. This is a list of top-selling albums that we
got off the Internet the same way anybody else would.
Mr. Towns. And the 25--you know, the reason I am asking
this question is that, you know, looking at that list, the top
25, you know, 22 of them were urban, you know, and that just
sort of hit me--struck me funny, you know, that out of the top
25, 22 of them were. And that didn't strike you funny?
Mr. Peeler. Well, again, this is a list of what consumers
are buying in the marketplace.
Mr. Towns. In a random kind of way, you are saying?
Mr. Peeler. It is not in a random way. It is the industry's
tracking of what consumers are purchasing in the marketplace.
These are the music recordings that consumers are buying the
most of. These are the most popular music recordings, and it
shows what their rank is this week and what their rank was last
week. This is very much like what is published every--Monday
morning, about which movies everybody goes to over the weekend.
Mr. Towns. I am trying to figure out how you get to this,
because 22 of those 25 are black, and that is the reason why I
am asking that question. So how do you arrive at--that doesn't
seem to be a----
Mr. Peeler. The industry tracks sales, and the industry
reports the sales.
Mr. Towns. That is the way you do it? That is the way you
have----
Mr. Peeler. That is the way the industry does it.
Mr. Simmons. But you also have some poor white rappers in
there. So that would be about it. It is a cultural issue, and I
believe that--it is very--we have to be very careful. Again,
these are voices of people who are not so visible, you know,
and the reason that I am so adamant about protecting them is
because they are talking about conditions in our society that
are swept--you know, people are very offended by the Jerry
Springer show, and Maury Povich and these shows; and, of
course, sometimes you realize there is some ignorance and some
poverty in this, and you see it.
You see white people. God, you only see rappers mostly,
poor people who have voices. So when you see the white people
who have voices, it is amazing, because it has not been in
style until now. So you say 22 of those 25 people are black,
but then they are also those white rappers, you add to the 24,
the 25 or something like that. So it is just--the fact is that
these are reflections of the conditions of--in our society, and
these reflections are not always pretty. They are honest, and
it is all reality, and breaking the mirror will not change
that.
And that is the point I want to make, and I want to protect
these artists. I think it is important that America hears them.
We have made a lot of change. I think that some of the good
that you see when you watch those shows now, that couldn't
happen a few years ago before rap. I remember when my brother
got on MTV, there was no one black on MTV except Michael
Jackson, and he had his hair straightened and nose broken. But
Run DMC, their first record, they said they made a connection
and the beginning of a connection between the projects and the
trailers. They speak the same language now, you know, and I am
hopeful that will have great ramifications, political
ramifications in this country. There is a commonality in this
poverty that they share amongst each other. And, again, the
kids in Beverly Hills understand it, and I want to protect it
because of its socially redeeming qualities.
And, again, when you watch Maury Povich and they want to
know who is the baby's daddy, and there is the white guy and
the black girl or vice versa, they never mention race, ever.
There is so much that rap has done to bring people together. So
that is what I am protecting, and that is why I am here, not
for the number of records I sell. If I slap one more sticker on
the record, I will just sell more records.
Mr. Towns. Mr. Peeler, though, in closing, you picked 25--
FTC picked 25, and of course of those 22, you know, you don't
know anything about this? I am trying to figure out how do you
do that. Of course, out of the 200, you did pick the 25. Right?
Mr. Peeler. There are two separate issues, as I understand
it.
Mr. Towns. Help me, then, because my understanding is that
you selected the 25.
Mr. Peeler. Again, as I understand it, there are two
separate issues. One of the issues that you have raised with us
before was the ads that we monitored and reported on.
Mr. Towns. Right.
Mr. Peeler. And those are ads that we monitored in our own
review of the advertising. Seventy-five percent of the ads that
we monitored--in other words, when we looked at publications,
we picked ads out of the publications for explicit-rated music
and made a decision whether or not about the parental advisory
was properly displayed. Seventy-five percent of those ads were
by urban artists.
The other issue I think you are raising is how do we
select, when we prepare our reports, what music marketing we
look at? And we have used industry publications like this
billboard chart to ask about the marketing practices for the
top-selling most popular parental-labeled albums for the
purpose of preparing reports back to Congress to say, here is
how this is going.
Now, obviously the issue that you have raised about what
the mix is, is one that we need to be sensitive to, and we have
been. You have raised it with us before, and we appreciate
that. It is an issue that we want to be sensitive to. This
should not be about Hip-Hop music. This should be about the
industry's advisory program and whether consumers are getting
the information they need. And we agree with you on that.
Mr. Towns. Yield back.
Mr. Upton. Thank you. Recognize the Chairman of the full
committee, Mr. Tauzin.
Chairman Tauzin. Thank you, Mr. Chairman, and I to welcome
you all. Thank you for coming. Let me make a point. Ms. Rosen,
I was absent. We were upstairs with the corporate
responsibility hearings on Quest and Global Crossing, and I
apologize for being a little late. And I missed your opening
statement. But I understand you mentioned the problems of peer-
to-peer and of content protection for musicians and those of
you who are in the context business, either in creative works
or in retail/wholesale.
Let me make a couple points, and then I want to ask you
some questions. One, this committee, of all the committees of
Congress, is as solid I think in joining you in attempting to
find solutions to those problems, not simply because we want to
direct kids to the stores where they see these labels and where
they are going to get the benefit of whatever labels are put on
this music, but simply because we want to protect content. We
understand that those of you in the creative world who make a
career of this deserve to have your creativity protected, and
those of you who are valuing these products deserve to have the
value protected.
And so I want to associate myself with those comments you
made. I think we all have a joint interest in that. That is on
the one hand.
On the other hand, we also have a joint interest in not
substituting ourselves for parents and asking you to become the
parents of all the kids of America--that is not our job, or
yours either--but simply helping parents in the business of
raising their children in regard to some of these questions
about exposure to violence and other things that may hurt them
in their young age.
In that regard, you wrote a letter to the FTC which
basically said that we have found that parents who are aware of
the parental advisory program are not only satisfied but find
the program effective.
First question. I am sending you a letter, by the way, with
some very specific questions I would like you to respond to,
but let me just take you through some of it right now. What was
the methodology used for you to make that statement? Did you
have focus groups? Did you go around the country inviting
parents to look at these warning labels and comment on them?
Did you show them alternatives? BMG has--one of your members
has now, as you know, indicated that they are willing and are
now putting a little more information up there so parents can
know why explicit content advisory is on a label, a little bit
more about what may be in the package.
In your methodology, did you show parents this alternative?
Did they have a chance to say, I would rather that; I would
really appreciate it if the music industry would all adopt a
warning label that included just a little more information for
me to know what may be in it. I may, for example, not have any
problem with my children hearing some sexual-related music, but
I may have a problem with violence. Vice versa. I may have a
problem with music that may tend to, you know, subject them to
too much violent content, and I may be okay--parents have
different ways of--views about raising their children. This
kind of stuff looks like it might help them. Did you give them
that choice--is what I am asking--in your methodology? What was
your methodology? Could you describe it to us?
Ms. Rosen. Actually, it was the FTC study, not ours, that
found that parents approved of the system.
Chairman Tauzin. So you have not done any kind of focus
groups or----
Ms. Rosen. Well, we used to do it pretty regularly, but I
think because they are always received with an appropriate
level of cynicism by members, why bother? That is what I
figured. But since the FTC study showed such good results for
us, I figured that would probably be as credible as we need it
to be.
Chairman Tauzin. The FTC, we know, didn't give them this
kind of a choice or this kind of a look.
Do you think if parents had a choice between a program that
had the parental advisory explicit content only and one that
had a little more information about what may be in the package,
that they would choose the first instead of the latter?
Ms. Rosen. Well, I don't know the answer to that. Mr.
Marmaduke from Hastings Records, he was here saying that they
used the existing parental advisory to restrict sales, and that
they get support from parents and consumers who are not
clamoring for more information. We do a lot of promotion on our
logo and what it means, and it already says all of those
things. So I don't think that is an issue.
Chairman Tauzin. But you are a parent, Ms. Rosen. I mean,
we know a little bit about parents. If you had a choice between
these two systems, wouldn't you as parent love to have a little
more information about why explicit content is on this package,
because parents have different views about what they want to
subject their children to?
Ms. Rosen. Well, I am not sure if you are focusing on this
particular sticker, because that is what our sticker already
says and means when it has language and sexual and violent
content. If you are asking me as a parent if somebody could
tell me it is sex versus violence, would I like that? Yeah, I
would probably like that, but I don't think that is the easy
answer. It is too----
Chairman Tauzin. It may not be the easiest answer, but it
is something parents want. I want to go to Mr. Marmaduke. What
good is a label if you put the price sticker on top of it?
Mr. Marmaduke. Well, we don't, but----
Chairman Tauzin. Somebody does. Who does that? I am
looking at--I have got a couple of them----
Mr. Upton. Best Buy, I think.
Chairman Tauzin. Yeah. Best Buy. The Best Buy price is
right on top of the warning.
Mr. Marmaduke. We put all our stickers on the top right-
hand corner, and I believe Wal-Mart does the same, Congressman.
So there is no conflict there.
Chairman Tauzin. So this is just a problem with some
marketers?
Mr. Marmaduke. Yes.
Chairman Tauzin. And----
Ms. Rosen. And that would be a violation of the policy.
Chairman Tauzin. That would be a violation of your policy,
right? Best Buy ought to be advised of violating your policy.
Who does that? Do you do that, or does the FTC do that?
Ms. Rosen. We leave retailer issues to the Retailer
Association. I am sure Best Buy is going to get a letter
tomorrow.
Mr. Marmaduke. They have been sent a letter.
Mr. Upton. Yield just a second. We did send Best Buy a
letter. They never responded back.
Chairman Tauzin. Well, somebody needs to send somebody a
letter. There are a lot of letters here.
Ms. Rosen. We do sort of reprimand, if you will, record
companies when we see them violating the policy.
Chairman Tauzin. Let me sum up, Mr. Chairman, again. You
guys have got a lot of friends here. This panel and Members of
Congress love music and arts as much as anybody in the country
does. Our kids love it, and we love to listen to new forms and
varieties of music just as much as anybody. That is not the
issue. The issue is not whether or not we are all, you know,
struggling in a crazy age to raise kids. That is true. We all
are. The only question is, can you help a little bit? Can you
help a little bit with more information on these labels? Can
you help to make sure retailers don't obscure?
You are going to find big defenders over here for your
creativity rights and for your rights to make a profit and to
fight those who are trying to steal your music.
One of my dear friends, Trace Adkins, was in town the other
day, and he told me he was out in Los Angeles to do a little
video for one of his songs, and one of the ladies who was
singing and dancing in his video came up to him and said, you
know, Trace, I never heard your music, but I got on the
Internet the other day and streamed some of it down, and let me
tell you, you are pretty good. He said he wanted--he didn't,
obviously, but he is a country western boy--he wanted to do a
little number on her for that.
The bottom line is we object to that as much as you do. And
when you come to us, asking for us to give you help to make
sure that your creativity rights and your value rights are
protected, we are here; but we are also asking you to stretch
it if you can. It is not our business to censor.
It is not our business to write labeling laws. I don't
think that some people want to do that around here. I certainly
don't, but I sure want to encourage you to give parents as much
of a helping hand as you can in some tough times.
Thank you, Mr. Chairman.
Mr. Upton. Mr. Shimkus.
Mr. Shimkus. Thank you. I will be brief. And I apologize
for missing some of the question-and-answer period because of
another commitment. But--and I think enough has probably been
said, and I did listen to all of your opening statement.
Ms. Rosen, let me just ask a question. You are familiar
with my Dot Kids Dot U.S. bill, and if you are--and I think the
Chairman mentioned it--we would like to see you-all's more
vocal support in that, in that it does try to address and help
parents with another tool to protect their kids on the
Internet. It also could address some of the piracy issues,
training kids properly. And we know you haven't taken a
position on the legislation yet, and I was just wondering what
comments you might have on it.
Do you know what I am----
Ms. Rosen. I am embarrassingly unprepared. Is this the one
where you set up a separate domain name?
Mr. Shimkus. What it does, instead of attempt to establish
a sort of a red-light approach, which is constitutionally
debatable, it establishes a green-light approach, a positive
approach, voluntarily, for people to go and for marketers to
go----
Ms. Rosen. Right.
Mr. Shimkus. [continuing] and we are very optimistic,
moving aggressively through this committee and through the
floor, and had a good hearing on the Senate side.
Again, it may not address the whole parental involvement
and content debate, but it could also address, you know, a
firewall on some of this downloading of music.
So I would just ask if you would and your organization
would take a look at that and be helpful in that venue, if you
may.
Ms. Rosen. Okay. It is a good idea.
Mr. Shimkus. And I will yield back my time.
Mr. Upton. Well, thank you.
This is the conclusion of the hearing. We appreciate your
testimony. We look--all of us look forward to continuing to
watch the progress and appreciate your attendance here today.
I might just note that we may submit some questions in
writing from either side. We will get those out as promptly as
we can.
Ms. Rosen. Mr. Chairman, I am so sorry to do this, but my
friends in the motion picture industry have asked me to make it
clear to Mr. Gordon and other members of the committee who may
be interested that the use of edited videos has been objected
to by the Directors Guild and the studios, and they are in
litigation right now.
Mr. Upton. Thank you. Have a good day.
[Whereupon, at 12:12 p.m., the subcommittee was adjourned.]
[Additional material submitted for the record follows:]
Prepared Statement of LaVerne Evans, Senior Vice President and General
Counsel, Legal and Business Affairs, BMG
Chairman Upton, Ranking Member Markey, and Members of the
Subcommittee: my name is LaVerne Evans, Senior Vice President and
General Counsel, Legal and Business Affairs for BMG. Thank you for this
opportunity to submit brief testimony for the record. I had hoped to
appear in person before the Subcommittee, but regrettably, a prior
commitment requires me to be out of the country on the day of the
hearing.
BMG, which employs approximately 1,700 persons in the U.S., is the
global music division of Bertelsmann AG, one of the world's leading
media companies. BMG is a home for creativity to artists across the
musical spectrum, including Alan Jackson, Christina Aguilera, Alabama,
Toni Braxton, Dave Matthews Band, Foo Fighters, Five, Whitney Houston,
Kenny G, Andy Lau, Alicia Keys, Sarah McLachlan, Misia, Wolfgang Petry,
Eros Ramazzotti, Santana, TLC, and George Winston. These and other
artists work with BMG and its 200 record labels based in 42 countries,
including well known labels such as Arista Records, RCA Records, RCA
Label Group-Nashville, and Ariola. In addition, BMG owns one of the
world's largest music publishing companies.
On June 3, 2002, BMG announced that it was expanding upon the
Recording Industry Association of America's (RIAA's) Parental Advisory
Program with its own additional descriptive labeling categories aimed
at providing more information to parents and consumers. At that time,
we also announced a new policy that will enforce labeling compliance
and consistency company-wide, as well as the extension of the new
advisories to advertising. BMG's Arista Records, BMG U.S. Latin, RCA
Records, RCA Label Group--Nashville, and J Records will use the
expanded parental advisory labels (PALs) (a sample of which is appended
to my testimony).
Since announcing the expanded advisory, BMG has released a number
of CDs and twelve-inch singles with our expanded PAL. For example, the
following releases carry an expanded PAL:
Clipse, ``Lord Willin'' (full-length CD released 8/20/02, with
``Strong Language, Sexual + Violent Content'' advisory);
Midwikid, ``Something Wikid This Way Comes'' (full-length CD
released 10/1/02, with ``Strong Language, Sexual + Violent
Content'' advisory);
Clipse, ``Grindin'' (twelve-inch single released 7/30/02, with
``Strong Language'' advisory);
Clipse, ``When The Last Time'' (twelve-inch single released 8/
20/02, with ``Strong Language, Sexual Content'' advisory);
Rob Jackson, ``Breakin'' Sketti'' (twelve-inch single released
7/16/02, with ``Strong Language'' advisory);
Youngbloodz, ``Wathcu Lookin At'' (twelve-inch single released
7/16/02, with ``Strong Language'' advisory); and
Youngbloodz, ``Cadillac Pimpin'' (twelve-inch single released
9/3/02, with ``Strong Language'' advisory).
The process that culminated with the announcement last June of our
new PAL began almost a year ago. We at BMG recognize that parents and
consumers are in search of more information to guide their purchasing
decisions. At the same time, we sought to ensure that artists continue
to maximize their creative expression. This is a delicate balance, but
one we are committed to achieving, and refining if need be.
We concluded in the final analysis that an expanded version of the
existing industry-wide PAL that we have adopted achieves the critical
balance we are seeking. As our Chairman and CEO, Rolf Schmidt-Holtz,
said when announcing the new advisories: ``BMG recognizes our dual
responsibility to help parents make informed decisions about the
entertainment their children consume and to protect the right of our
artists to express themselves freely,'' said Schmidt-Holtz. ``Our
labeling initiative will offer parents additional tools to help them
decide what is appropriate for them and their families, keeping in mind
the rich diversity in our communities.''
According to the new BMG policy, any BMG record release in the
United States that warrants a PAL will receive an additional label (or
labels, as the case may be) describing the nature of the explicit
content according to three classifications: Strong Language, Violent
Content and Sexual Content. Depending on its content, a release may
fall into more than one classification and therefore receive multiple
labels, which will be placed on the bottom right corner of the album
itself directly under the PAL. While all labeling decisions will
continue to reside with the record labels, BMG has appointed me to
oversee compliance. The BMG policy will be in accordance with and
expand upon the RIAA's Parental Advisory Program guidelines, which
establish basic principles on which labeling decisions are based.
At this early stage of implementation, we are still gathering
feedback from all affected parties, including consumers, artists,
advertisers, retailers, and our record labels. But based on the initial
positive response, we are hopeful and optimistic that our expanded
advisories are serving the interests of all involved. I would
particularly like to thank you, Chairman Upton, as well as the Chairman
of the Full Committee, Mr. Tauzin, for your kind words of support for
our new advisories. We look forward to your continued support, and
working with you on this important matter. Thank you.
______
Sony Music Entertainment Inc.
October 31, 2002
Honorable W.J. ``Billy'' Tauzin
United States House of Representatives
Washington, DC 20515
Dear Chairman Tauzin: Thank you for contacting us with your
questions about Sony Music Entertainment Inc.'s views about BMG's
decision to change its policy concerning the labeling of recorded
music. As we understand its new policy, BMG has decided to qualify the
parental advisory label by separately categorizing the content of each
labeled recording as containing strong sexual language or strong
violent language, or a combination thereof.
Sony Music has worked for some time to develop a system of labeling
and informing parents that works as best as possible. We have been
deeply interested in and respectful of the views of you, your
committee, and parents throughout this nation who care deeply as do we
about informed choices with respect to consumer purchases. In addition,
we have found ourselves working ever more closely with retailers and
distributors on these issues, to make sure we understand as best as we
possibly can how people actually want to receive information with
respect to their choices, so that we can be as responsive as possible.
Sony Music has adopted and supported the RIAA's enhanced guidelines
for the parental advisory labeling program. Our goal is to provide
adults and parents with notice of explicit content so they can act as
they deem appropriate with respect to their children's record buying
and listening choices, including on the internet. To that end, we have
extended use of the parental advisory label to all advertising in all
media and have widely publicized the existence and meaning of the
parental advisory label through, among other things, a web site,
brochures, an industry task force, and in-school educational programs.
Unlike songs, movies and videogames which are longer, multimedia
works, have visual and narrative context; content labeling of movies
and videogames may therefore be possible. However, the only way to
attempt to categorize a song is by labeling its unadorned language. The
many problems with this include the fact that words and the various
contexts they are placed in have different meanings to different
people. Indeed, some words may have special ethnic or cultural meanings
significant to the writer or a particular audience. Songwriters and
recording artists might well object to having record company employees
delegated with the power to review and impose value judgments on songs
by imputing inferences and meanings where none may have been intended.
An attempt to subjectively categorize the words and meanings in a song
will all too often result in arbitrary and misleading labels and,
possibly, threaten artistic integrity and freedom of expression. We
believe that our successful implementation of the current parental
advisory labeling policy, with its attendant publicity, continues to be
the best way to achieve the goal of providing clear and reliable
information to parents.
Please be assured that we fully share your concerns and that we are
committed to empowering parents with reliable information that helps
them guide their children's purchases. We have been responsive to
concerns that our own practices needed improvement. We are proud of the
commitments that we have made and continue to make to give consumers
choices. We are respectful of the fact that there are different ways to
approach this same goal, and we will as always be responsive to
concerns and views about informed consumer choice, artistic integrity
and freedom of expression.
Respectfully,
Thomas C. Tyrell
Executive Vice President, External and Government Affairs
______
EMI Recorded Music
October 29, 2002
The Honorable W.J. ``Billy'' Tauzin
Chairman
Committee on Energy and Commerce
U.S. House of Representatives
Washington, DC 20515-6115
Dear Chairman Tauzin: I write in response to your letter of October
1, 2002 to Hilary Rosen of the Recording Industry Association of
America (RIAA), signed by eight members of the House Committee on
Energy and Commerce. As the Chairman and CEO of EMI Recorded Music,
North America, I can assure you that EMI is committed to effectively
addressing the concerns of parents and consumers. Because we take this
responsibility very seriously, it is important to carefully consider
the adoption of any new policy or practice. Specifically, regarding the
inclusion of content descriptors in Parental Advisory Labels, EMI has
not yet determined that such an expansion to the RIAA Parental Advisory
Program is effective in achieving the intended goal, nor capable of
doing so without unintended negative consequences. For that reason,
although we remain open to the future adoption of such a policy, until
we are able to evaluate the effects of an expanded Parental Advisory
Program on an informed basis, EMI believes that the existing RIAA
Parental Advisory Program best addresses the needs of parents and
consumers while balancing the attendant concerns of our recording
artists and our record labels.
The overriding purpose of the Parental Advisory Program is to
inform parents and consumers that a recording carrying the Parental
Advisory Label contains explicit content and, accordingly, that
parental discretion is advised when that recording is purchased for
children or listened to in the home by children. The Program does not
attempt to make the decision as to whether or not a particular
recording is appropriate for individual listeners. As a record label
executive, I want to ensure that parents and consumers are advised that
a decision is warranted, but I also want to protect our artists' First
Amendment rights of free expression. As a parent, I would want to be
the Person making the decision as to whether or why a particular
recording is appropriate for my children, and not have it made for me
by a third party. EMI is not yet convinced that the use of general
content descriptors adequately assists a parent in making a decision
and, therefore, believes that it is not necessarily an appropriate
approach.
Music, unlike film and video, is a non-visual mode of expression,
and is often difficult to accurately characterize. Even the task of
determining whether or not a particular recording warrants the
application of a Parental Advisory Label is not a simple, objective
undertaking. At EMI, each of our label presidents is ultimately
responsible for making the decision whether or not to apply the
Parental Advisory Label on recordings released by that label. The
decision is necessarily subjective, and a variety of factors are
considered in addition to straight lyrical content, including context,
frequency, emphasis and interpretation. An attempt to capture all of
this subtlety through the use of a limited number of general
descriptors may be inaccurate and misleading.
EMI releases thousands of album-length sound recordings in the
United States each year. While we applaud BMG for attempting to provide
parents with additional information, we remain cautious about whether
the new policy will be effective--and we remain wary about any
potential unintended negative consequences, including legal concerns
over claims, however, unwarranted, that product is in fact mis-labeled.
In sum, therefore, before we take the significant step of making a far-
reaching change to our current Parental Advisory Policy--one that we
believe works quite well to achieve its goals--we want to better assess
the effects of the new BMG policy.
I hope that this letter is helpful in providing you with an
understanding of EMI's views on this important issue. I am happy to
continue this dialogue and to update the Committee on any changes to
EMI's policy in the future.
Sincerely,
David Munns, Chairman and CEO,
EMI Recorded Music, North America
cc: Alain Levy, Chairman and CEO, EMI Recorded Music
Mike Dungan, President and CEO, Capitol Nashville
Bill Hearn, President and CEO, EMI Christian Music Group
Bruce Lundvall, CEO, Blue Note, Angel and Manhattan Records
Matt Marshall, President, Higher Octave Music
Jorge Pino, President and CEO, EMI Recorded Music Latin
Phil Quartararo, Executive Vice President, EMI Recorded Music, North
America
Matt Serletic, Chairman and CEO, Virgin Records America
Andy Slater, President and CEO, Capitol Records
Wesley Van Linda, President and CEO, Narada Productions
______
Warner Music Group
October 31, 2002
The Honorable Billy Tauzin
Chairman, Committee on Energy and Commerce
U.S. House of Representatives
2125 Rayburn House Office Building
Washington, DC 20515
Dear Mr. Chairman, I am writing in response to your October 1st
letter to Hilary Rosen in which you asked her to solicit from RIAA
member companies their position on adding content descriptors to
parental advisory labels. Warner Music Group understands your concerns
in this area and your interest in providing parents with information
that will be helpful in guiding their decisions about music choices.
We are seriously considering your suggestions. Warner Music Group
has been engaged in a process to evaluate the merits of including
additional information on our parental advisory labels describing the
nature of the recorded musical content. As part of this process, we are
speaking with our record labels, our artists' representatives, parents
and music retailers. In order to reach a decision, we need to learn
whether the addition of content descriptions (of the BMG sort or
otherwise) would be helpful to music retailers and will assist parents
in making purchasing decisions for and with their children.
We expect to have all feedback by the end of this year so that a
final decision can be reached at that time. We will keep you apprised
of the process as we move forward.
Very truly yours,
David H. Johnson,
Executive Vice President & General Counsel
cc: Hilary Rosen
______
Universal Music Group
October 31, 2002
The Honorable Billy Tauzin
Chairman
Committee on Energy and Commerce
U.S. House of Representatives
Washington, DC 20515
Dear Mr. Chairman: Hilary Rosen forwarded to me your letter
regarding the programs we use to advise parents and other consumers
about sound recordings that contain explicit content. My colleagues and
I followed the Commerce Committee's recent hearing and appreciate your
views as well as those of others on the Committee. The Universal Music
Group has a comprehensive review process in place to monitor the
content of releases from all of its record labels, and over the years
UMG has chosen not to release certain music. We take this subjective
and difficult undertaking quite seriously, knowing that not everyone
will always agree with the decisions that are made.
The company is also committed to following the voluntary stickering
program devised in cooperation with the record industry and the
Recording Industry Association of America to alert consumers to
potentially offensive material. A recent study by the Federal Trade
Commission from September 2000 found that more than 70% of parents
surveyed were satisfied with the current Parental Advisory label. UMG
supports the Parental Advisory labeling system as an effective and
recognizable tool for parents to help them determine if the content is
appropriate for their children. UMG believes that the Parental Advisory
label can be an effective tool for parents in the online world as well.
It is noteworthy that pressplay, an online music venture with which UMG
is associated, enables parents to block from their homes songs that
have been stickered with the RIAA Parental Advisory label. Pressplay is
virtually the only online music site to take such steps to educate and
empower parents. In fact, the limited availability of parental advisory
information or controls on peer-to-peer networks was one of the
concerns cited by Senator Rick Santorum and Representative Joe Pitts in
their request that the FTC conduct a study on the problems of peer-to-
peer networks.
Importantly, as part of our ongoing relationships with our retail
partners and with consumers, we continue to review and assess the
viability of the current labeling system. In June of 2001, the
Universal Music Group initiated changes to our Parental Advisory
labeling procedures with respect to the marketing of albums carrying
the Parental Advisory label, in order to more clearly identify such
labeled product for parents.
UMG required that all radio and television advertisements for
``stickered'' UMG releases carry the Parental Advisory label.
Furthermore, it is our policy that such advertisements carry a notice
indicating ``Edited Version Available,'' if applicable. UMG also
adopted an internal compliance process to ensure that the appropriate
steps are being taken by each label within the Universal Music Group.
More recently, as you have noted, one record company--BMG--has
opted to adopt a different labeling system. We have been meeting with
retailers around the country to obtain their views on whether they and
their customers find the RIAA system satisfactory, whether or not the
BMG-adopted system is being well-received, or whether a different
approach should be explored. At this stage, there has been very little
practical experience with the BMG-adopted system, although it has
certainly stimulated further analysis and internal debate.
Universal Music Group takes this issue seriously and is dedicated
to maintaining a viable balance among its artists, the preferences and
demands of audiences in the marketplace and our effort to inform
parents.
Respectfully submitted,
Michael Ostroff
Executive Vice President, Business & Legal Affairs
cc: The Honorable Joe Barton
The Honorable Eliot Engel
The Honorable Paul Gillmor
The Honorable Chip Pickering
The Honorable John Shimkus
The Honorable Lee Terry
The Honorable Fred Upton
Hilary Rosen