In a bid to warn their member stations about potential new SoundExchange royalty rates, the National Association of Broadcasters issued a mock statement of royalties due that amounts to between 10 - 35 percent of stations' revenue. The big idea here is that terrestrial radio stations will be incented to contact their Congressional representatives while they are in their home districts, before they return to Washington at the beginning of September, possibly taking action on royalty rates soon after.
[Update: musicFIRST responds]
Here are the bullet points included in the mock invoice (PDF):
• Congress has historically recognized the great value of radio promotion and airplay enjoyed by record labels and their recording artists.
• Imposing a new performance tax on local radio broadcasters would radically alter the balanced, fair system that has worked well for broadcasters, artists, composers and the recording labels for many years.
• Imposing a tax of this size on free, local radio stations will cripple smaller radio stations. It has been reported that the recording industry is seeking fees upwards of 10-35% of industry revenue, which for my station would mean $______________ annually. (Multiply percentage by your station's gross annual revenue).
• Such a tax would not only affect radio stations, but restaurants,
sports stadiums, hotels and other venues that air pre-recorded musicfor their patrons.
• The big record labels like to hide behind their artists, but at leasthalf of all fees end up in the pockets of foreign record labelconglomerates, while the rest is divided up among the stakeholders.
Often, the artists only receive a few pennies out of every dollar.
SoundExchange has been lobbying Congress (in apparent violation
of its charter) to enforce performance royalties for sound recordings,
as have already been implemented for internet and satellite radio.
Broadcasters claim that radio's highly-programmed setlistsstill offer the labels a viable platform for promoting the sale ofmusic, and as such, they shouldn't owe these royalties.
(via RAIN)
