Cathy Hughes Seeks Support In Opposing Tax Performance Bill

Cathy Hughes

CATHY HUGHES, CEO and Founder of RADIO ONE is seeking to call attention to THE JOHN CONYERS PERFORMANCE TAX BILL and a situation which affects many African-American owners. Ms HUGHES claims this bill could “put many black owned radio stations out of business and force others to abandon their commitment to provide free music, entertainment, news, information and severely affect money losing formats such as gospel and black talk.”

There has only been one hearing on the bill and there were no African-American owners present. Ms. HUGHES says that Black owners and community leaders such as Rev. JESSE JACKSON, Rev. AL SHARPTON, DICK GREGORY, TOM JOYNER and herself appealed to Rep. CONYERS for a hearing. He refused.

Ms. HUGHES is asking help from the industry to contact Rep CONYERS at john.conyers@mail.house.gov and to oppose this bill. This bill would make it nearly impossible for minority owned stations to stay in business.

Here are some facts that support this position: 

1. The promotional value of free local radio airplay translates into significant revenues for artists and record labels: 

According to the Recording Industry Association of America (RIAA), record sales in the United States in 2007 were approximately $10.4 billion; touring revenue in 2007 in the U.S. was approximately $5 billion;
These figures exclude several billion dollars derived annually from merchandise, songwriting royalties and licensing deals for commercials, films, etc. Also excluded is the boost from American popularity that triggers and boosts foreign sales and concerts. 

2. Local radio also actively promotes artists by: 

Devoting considerable and valuable airtime to promoting artists’ concerts; featuring artist weekends; providing opportunities for live in-studio performances; and creating a buzz through on-air ticket and album giveaways, which help to drive concert and merchandising revenue. 

The recording industry suggests the Internet and viral marketing has replaced terrestrial radio as the way to break a new artist. However, despite numerous new methods for artists to showcase their music, including MySpace.com, retail outlets, etc., it’s become apparent that Urban radio’s promotional value is still key and has been proven to make a difference with both established artists as well as new artists.

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