NAMB To Pelosi: Performance Tax Would Bankrupt One-Third Of Minority Stations
June 8, 2009 at 3:50 PM (PT)
The NATIONAL ASSOCIATION OF MEDIA BROKERS has sent a letter to Speaker of The House NANCY PELOSI opposing H.R. 848, the Performance Royalty bill, stating that its passage could cause irreparable harm to minority and small-market broadcasters. NAMB sided with media brokers who work for the MINORITY MEDIA AND TELECOMMUNICATIONS COUNCIL, who warned that up to one-third of minority-owned stations would go bankrupt should a performance royalty become law.
Also being hurt by such a royalty would be small-market broadcasters who lack "the economies of scale enjoyed by stations in large markets. We are also very concerned about the impact on other new entrants to the industry -- who are already scared because of the credit crunch and will become even rarer because of the uncertainties imposed by the potential of a performance royalty."
At the very least, NAMB Treasurer RICHARD L. KOZACKO wrote, the House should "defer consideration of legislation until it receives a GAO study on the impact of the legislation on the radio industry."
Read the entire letter here.