NAB goes local to battle performance tax


The National Association of Broadcasters is urging 13K radio stations to seek out their local congressional representative during the August recess and let them know what will happen if over-the-air performance royalties are put into law. The technique adopted by the NAB is a mock invoice which pegs the cost of such a scheme at anywhere between 10%-35% of gross revenues.

"Imposing a tax of this size on free, local radio stations will cripple smaller radio stations," the piece argues. It notes that "restaurants, sports stadiums, hotels and other venues" would likely also be affected by the tax, and then says, "The big record labels like to hide behind their artists, but at least half of all fees end up in the pockets of foreign record label conglomerates, while the rest is divided up among the stakeholders. Often, the artists only receive a few pennies out of every dollar."

NAB reminds legislators that Congress has traditionally recognized the symbiotic relationship enjoyed by radio and recording companies, and asks local stations to use their familiarity with their own representatives to help drive home that point once again.