Legal
Radio (Performance)……?Tax?
by Jim Grmes on Feb.19, 2010, under Legal
All of a sudden here in the Boston Market (and I’m sure it’s the same around the country), we’re seeing a proliferation of ads about the “Radio Tax”. These ads, run by your local NAB member stations, are very dramatically proclaiming that if this “Tax” passes, you’ll see the fall of radio in your community and that you should contact your Congressional Representatives now to let them know you don’t like it.
What strikes me about this particular issue, and the media buzz behind it, is the level of drama being brought into it….(I could get on an entire rant about misleading drama in political advertising). In contrast to what those against the legislation would have you believe, the RIAA and its supporters want you to think that many a musician are starving because of the “greedy broadcasting corporations”.
When I first started thinking about this subject and started looking into it, my idea for this writing changed. I started off thinking that I would comment on how our Government is being prodded into getting involved in something (again) that should be left to the private sector, but then I found that what really bothered me more was the hype that both sides were putting on this issue. In most cases what we hear about the issue from the 30 second spots on radio and TV (and the 1.5 minute news pieces) is generally designed to generate a fear-response.
Here then, is what I hope will be a matter-of-fact presentation…..you’ll have to decide how you feel about the issue and by all means, inform your Representatives, whether you are Pro or Con
Is this really a Tax?
No….it’s a fee, mandated by government legislation, yes, but not collected by the Feds. Here’s a copy of the resolution H.R. 848 courtesy of the NAB’s website
Will all your local stations fold as a result of passage of this act?
No, although smaller stations will suffer and yes, some of them may fold up their tents and close or sell (or change to talk-radio)…the larger, corporate owned stations will likely negotiate deals that will keep them operating.
Will Artist see great financial gain from this action?
I believe, as do many of the more reasonable-minded, that musicians will see very little of the money from this. In fact I believe that the passage of this kind of legislation will ultimately have a negative impact on the overall revenue from music sales. Keep in mind who is really behind this effort. It’s the RIAA (Record Industry Association of America), a group of record companies. Not the artists so much. And let’s face it, the popularity of any given song, and its sales are directly tied to radio air-time. You cannot argue that fact. It’s like any other aspect of marketing, the more eyes and ears you touch, and the more often you touch them, the more you’ll sell. Its math people….
Don’t radio stations already pay fees to play music on the air?
Yes…..but not to the record companies. They pay the artists (composers, studio musicians and such) through the ASCAP/BMI licensing fees they pay. Unlike other services, chief among them being satellite and internet, Radio and TV stations are allowed to be on the air, in part so that there is a common and FREE means of getting information to the people. Every Broadcaster is obligated to provide Federal, State and Local Governments a means of getting emergency information to the people. (This is now known as the EAS system). If you choose to, you can listen to your Radio (and watch your TV), over the air, absolutely FREE OF CHARGE…..for as long as those stations are broadcasting. Radio stations are not allowed to charge record labels to air your music…..they receive no income from that. In fact they already have to pay those licensing fees I just mentioned.
Here’s a link to a Blog response I found in the Dayton Daily News Blog: Blog Link
The responder, Dave, has an interesting take on this matter. Please read!
So if I have an opinion its this: Both sides, PLEASE tone down the rhetoric and give people FACTS that they can digest, form an opinion on and then take to the people that represent them in Congress if they choose to. But more importantly, why does our government have to be involved in this at all? This is, by every definition, a matter for the private sector, no matter how you paint the issue. And then finally, I say that personally I’m against the “tax” or “fee” or whatever we choose to call it. It will not have a significant impact on the people that its proponents claim will be helped, the only real beneficiaries of this will be the record labels themselves…….period.
