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CBO Says Airplay Royalty Costs Would Be Substantial


In a report published earlier this month, the Congressional Budget Office estimates that the total cost of royalty fees for local airplay on commercial radio broadcasters "could be substantial." CBO says rates have not been established for about 1800 radio operators that currently have gross revenues of $1.25 million or more. However, estimates for those with gross revenues of less than $1.25 million per year would pay a total of about $16 million annually.

If the Performance Rights Act is passed, CBO estimates that the cost of complying for publicly-owned stations would be about $500,000 a year.

Under the bill, small, publicly owned, and religious stations would pay lower royalty fees than large and commercial stations. Those broadcasters could elect to pay a flat annual rate set by the bill.

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