Bob Hughes, Pat Hughes and Jonathan Schwartz, owners, Compass Radio of San Diego; Congressman Brian Bilbray; Darrel Goodin, general manager, Lincoln Financial Media; Jamie Hartnett, executive director, California Broadcasters Association - Southern CA; Dave Armstrong, general manager, Salem Communications; Sharon Massey, executive director, San Diego Radio Broadcasters Association; Debbie Wagner, president and general manager, Clear Channel Communications

A team of local station managers met with San Diego Congressman Brian Bilbray in early June to talk about the Performance Tax Bill under consideration in Washington. The fee has been proposed by the Recording Industry Association of Amercia and record label conglomerates (mostly foreign owned) in an effort to recapture lost revenue from their failing business model.

For more than 80 years, labels and performers have thrived with free promotion from local Radio stations. The proposed tax will hurt local Radio stations by requiring them to pay additional fees to play music. Stations already pay fees to performance rights agencies BMI and ASCAP. The new fees will also negatively impact new artists trying to break into the business as well as listeners who rely on local Radio for emergency information, news, weather and entertainment.

Free airplay, which touches 235 million listeners a week, drives music and concert sales, which ultimately results in compensation for the record labels and performers. Despite the growth of new media, a vast majority of Americans continue to be exposed to new music on the Radio more than through any other source. A recent economic study concluded that the promotion from Radio airplay is directly responsible for $1.5-$2.4 billion worth of music sales for the big record labels each year. Read More…

Posted under Behind the Mic, Community Cuts, Radio