musicFirst, NAB Debate The 'Cost' Of $5K In Royalties
March 24, 2009 at 2:37 PM (PT)
The MUSIC FIRST COALITION released a report TODAY (3/24), claiming that three of four radio stations will pay less than $5,000 a year to clear music rights. "Corporate radio can run, but it can’t hide behind small, public and non-profit radio stations in the fight to secure a fair performance right on radio," Executive Dir. JENNIFER BENDALL said upon release of the new numbers on the impact of the Performance Rights Act.
"More than three-quarters of the almost 9,000 music radio stations in the U.S. will pay $5,000 or less a year to clear the performance right for all the music they play," BENDALL said. "That’s about $420 a month."
The numbers vary from state-to-state, says the COALITION. In more than one-half of the states, 80% or more of the music radio stations will pay $5,000 or less a year. In VERMONT, MISSISSIPPI, MONTANA, NORTH DAKOTA and ALASKA, 90% or more of radio stations will pay $5,000 or less.
In response to the MUSIC FIRST breakdown, NAB EVP DENNIS WHARTON issued the following statement: "NAB is delighted by the growing bipartisan opposition in CONGRESS to RIAA's attempted fleecing of AMERICA's hometown radio stations. Five thousand dollars may not sound like a lot of money to a fat-cat foreign record label mogul from PARIS, FRANCE. But in PARIS, TEXAS, a $5,000 loss in revenue could threaten a station's ability to carry AMBER Alerts, emergency weather warnings, and high school football games."
Nine More Take The NAB's Side
The NAB announced TODAY that nine additional lawmakers have signed on to a bipartisan U.S. House of Representatives resolution opposing the introduction of "any new performance fee, tax, royalty, or other charge" on local radio stations.
House Ways and Means Committee Chairman CHARLES RANGEL (NY-15), and Reps.
STEVE BUYER (IN), DANNY DAVIS (IL), DEBORAH HALVERSON (IL), TIM HOLDEN (PA), JAMES OBERSTAR (MN), ED WHITFIELD (KY), HAROLD ROGERS (KY) and FRED UPTON (MI) have all added their support to the Local Radio Freedom Act, bringing the total bipartisan support to 158 House lawmakers.