[opendtv] Record Labels and "Performance Tax"
- From: dan.grimes@xxxxxxxx
- To: opendtv@xxxxxxxxxxxxx
- Date: Tue, 8 Jul 2008 15:20:49 -0700
I'm sure this is nothing new, but is the first I have heard about it. I
suppose, in light of recent discussion, that media ownership means an
owner can provide the media under their own terms. So little is done for
mutual benefit or for the benefit of society anymore. It seems that only
money and pragmatism drives our industries these days.
Dan
Tuesday, July 8th, 2008
The NEVADA Broadcaster
THE OFFICIAL NEWSLETTER OF THE
NEVADA BROADCASTERS ASSOCIATION
RECORD LABELS COULD JEOPARDIZE STATIONS
Editorial by Adam Sandler
Reprinted from the Reno Gazette-Journal July 8, 2008
... a majority of the U.S. House of Representatives have become
co-sponsors in support of free over the air radio including Shelley
Berkley and Jon Porter.
If the record labels have their way, local radio stations could face
extinction.
The Recording Industry of America, which represents the big record labels,
has pressured Congress to introduce a "performance tax" on local radio
stations that would require radio stations -- both big and small -- to pay
for the right to play music on the radio. The labels claim "it is for the
artists," yet under this proposal, the primary performing artists receive
less than the labels' cut.
If a performance tax were imposed, local radio stations would need to find
millions of dollars in an already strapped economy to try to cover the
cost. Stations would be forced to take on more advertisers and devote less
time to promoting community events, giving traffic, news and weather
reports and playing the songs you love. Smaller stations could be forced
to shut their doors, putting people in your community out of work. Larger
stations would have to cut back on the local content they proudly provide.
Local nonprofit groups would lose millions of dollars in free promotions,
making it harder for them to raise money and help the underserved in our
communities.
Additionally, what the record labels don't want you to know is that radio
does compensate them with free airplay and free promotion of artist events
-- publicity and airplay that touches 232 million listeners in the U.S.
per week. For more than 70 years, radio has promoted music and performing
artists at absolutely no cost to either the artist or record label.
Additionally, radio compensates the songwriters and composers by paying
yearly dues to the performing rights organizations (BMI, ASCAP and SESAC),
while record labels have been largely responsible for compensating their
artists. And radio stations do all of this promotion for free: Local radio
stations receive no compensation from artists or the record labels.
From this, the recording industry and its artists enjoy increased
popularity, visibility and record sales. In fact,
85 percent of listeners identify radio as the place they first discover
new music.
Ask yourself: When was the last time a record label did something to help
our community? My guess is you drew a blank. Yet, I bet you can think of
many times when your local radio station supported local charities or
raised awareness of a local issue by discussing it on-air. Indeed, radio
has a direct impact in every American community from providing critical
emergency and disaster information to helping you decide whether to take
U.S. 395 or Interstate 80.
Recognizing the value of local radio, many members of Congress on both
sides of the aisle oppose the "performance tax." Introduced to protect
local radio, H. Con. Res 244 has more than 200 co-sponsors including
Nevada's U.S.Rep. Shelley Berkley and U.S. Rep. Jon Porter. Its companion
in the Senate (S. Con. Res. 82) was just introduced last month.
The record labels have refused to adapt, and now they want everyone else
to pay. Don't let the labels dictate what happens in our community. Ask
your Member of Congress to demand that the labels stop balancing their
books on the back of our community.
Adam Sandler is vice president of the Nevada Broadcasters Association and
member of the Free Radio Alliance.
1050 East Flamingo Road, Suite S-102, Las Vegas, NV 89119. If you would
like to comment on something you have read, or to request further
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