NAB Opposes Radio Performance Royalty
• In response to the legislation introduced this week by Reps. Ted Deutch (D-FL-22) and Darrell Issa (R-CA-50) that would impose a performance royalty on local radio stations for over-the-air music airplay, NAB President & CEO Gordon Smith issued the following statement, that reads, “NAB strongly opposes the American Music Fairness Act or any imposition of a performance royalty on America’s local radio stations. For decades, broadcast radio has enjoyed a mutually beneficial relationship with the music industry, launching and sustaining the careers of countless artists, promoting album sales and streams, and helping to foster a robust music-creation environment that is the envy of the world.”
The statement continues, “We thank the 138 Representatives and 18 Senators who are currently cosponsoring the Local Radio Freedom Act, which acknowledges the long-standing connection between radio and the music industry as well as the tremendous service hometown radio provides to local communities every day.”
The basis of the Local Radio Freedom Act reads, in part, “Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over the air, or on any business for the public performance of sound recordings on a local radio station broadcast over the air.”
In conclusion, Smith said, “Broadcasters remain open to working with the record labels to reach a comprehensive and reasonable solution to this issue that reflects the incredible value provided by local radio to musicians, labels and our millions of listeners over-the-air and online. It is unfortunate that the record industry refuses to have those discussions.”
