NAMB to Pelosi: Delay Performance Rights Act Vote

RADIO ONLINE | , ,

In a letter to House Speaker Nancy Pelosi, the National Association of Media Brokers says the Performance Rights Act "will be crippling to the broadcast industry" as well as "minority broadcasters" if passed. The letter, signed by NAMB Treasurer Richard Kozacko, notes that the organization's member negotiate most U.S. radio and television deals.

In the letter, Kozacko cites the Minority Media and Telecommunications Council's estimate that if passed, the measure aimed to collect rolyalties for local radio airplay could bankrupt about a third of minority-owned stations.

"We believe that the proposed royalty will also have a very significant impact on another important class of stations -- small market broadcasters providing vital services to rural communities without the economies of scale enjoyed by stations in large markets," the letter continued.

"Further," Kozacko said, "it would impose potentially devastating new costs on radio in three years -- costs which are simply unknown at this time but which could be, based on Copyright Royalty Board decisions for other services, virtually eliminate the profit potential from the radio industry."

Additionally, Kozacko said that the tier system, which would set a lower, flat royalty for stations grossing less than $1.25 million, is nothing more than "a penalty for growth," that he procliams will further deter investors.