Dan; This is somewhat complicated issue. If radio stations in the U.S. are forced to pay needle-drop fees, do you think you'll hear more or less music on the radio? Radio gives away music (some radio, anyway) for free. Record labels don't. Radio tends to pay talent the agreed upon fees. Music labels generally steal from their talent. Radio is in the entertainment business. Record labels are in the banking business. This area has been hot for months. John Willkie, who has alluded to this battle several times on this list _____ De: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx] En nombre de dan.grimes@xxxxxxxx Enviado el: Tuesday, July 08, 2008 3:21 PM Para: opendtv@xxxxxxxxxxxxx Asunto: [opendtv] Record Labels and "Performance Tax" 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 information please contact the NBA at (702) 794-4994 or <mailto:newsletter@xxxxxxxxxxxxxxxxxxxxxx> newsletter@xxxxxxxxxxxxxxxxxxxxxxx To unsubscribe, please reply to this message with "UNSUBSCRIBE" in the subject line.