NAB Outlines Negative Impact of Performance Fees

RADIO ONLINE | , , | :am CT

Representatives from the National Association of Broadcasters (NAB) met with members of Congress and the Recording Industry Association of America (RIAA) to reiterate the negative impact that local airplay royalties would have on local radio stations that provide free airplay to its 235 million weekly listeners.

NAB Joint Board Chairman Steve Newberry (President/CEO of Kentucky-based Commonwealth Broadcasting), and NAB Radio Board Chairman Charles Warfield, (President/COO of ICBC Broadcast Holdings) along with representatives from the National Association of Black-owned Broadcasters (NABOB) and the Spanish Broadcasters Association attended the meeting. Rep. Mike Conaway (TX-11), an original co-sponsor of a countering resolution known as The Local Radio Freedom Act, also participated in the meeting.

NAB Executive VP Dennis Wharton said in a statement, "Out of deference to key members of Congress, NAB representatives met today with representatives of RIAA and the music industry to discuss pending performance tax legislation. NAB representatives, along with representatives of minority-owned radio stations, reiterated our strong concerns over the negative impact that the bill would have on the ability of free and local radio stations to continue serving our listeners."

Meanwhile, Utah Democrat Jim Matheson (UT-2) became the 253rd member of House of Representatives to co-sponsor the Local Radio Freedom Act, a bipartisan resolution that opposes "any new performance fee, tax, royalty or other charge" on local radio stations for music aired free to listeners. To date a bipartisan group of 253 House lawmakers and 27 U.S. Senators have publicly expressed opposition to the RIAA-backed legislation.