Opposition to Performance Royalty Grows


Music-Record2The Free Radio Alliance is working diligently to prevent the imposition of performance royalties on local AM and FM radio, and a number of organizations have joined the fight.

The organizations include NOBEL/Women, the Intertribal Agriculture Council and the US Hispanic Chamber of Commerce.

“Each of these groups has a diverse mission, but they are united in the fight against a performance royalty on local radio stations across America,” said Free Radio Alliance spokesperson, Peggy Binzel. “The Free Radio Alliance is delighted that they have joined the cause. From black women legislators to tribal farmers to Hispanic-owned businesses, these groups understand that weakening free, local radio stations is bad for their communities.”

Non-profit NOBEL/Women is an organization of black women legislators, both current and past, who believe that preserving free local radio service protects an important option for women trying to keep a family budget in order.

The Intertribal Agriculture Council relies on free radio for vital information on the weather and other issues, and believes radio is an important resource for all in the agriculture business.

The US Hispanic Chamber of Commerce is thinking ahead – it notes that music is played in many small businesses, and is convinced that if the performance royalty is imposed of radio, the labels will come after them next.

Hispanic Leadership Fund President Mario Lopez added, “Nothing good usually happens when the government inserts itself in the middle of an established business relationship, especially when it tries to impose a new tax.”

Binzel added, “Business owners who play recorded music in their establishments understand that if the record labels succeed in imposing a performance tax on radio stations, they will be the next target,” said Binzel. “There is no question that the record labels are engaged in a divide and conquer campaign. First, the labels are targeting radio stations; the ink won’t even be dry on the legislation before the record labels take aim at extending the performance tax to all establishments that play recorded music. The Free Radio Alliance is delighted that more organizations, like the US Hispanic Chamber of Commerce, that represent local business owners are joining the fight.”

RBR+TVBR observation: It is not a surprise to see radio operators enthusiastically get behind FRA on this issue. To see others recognize the harm is awesome.