‘We are in a kind of a ‘perfect storm' with the bad economy and the unfair competition we are facing from Clear Channel, owner of 1,200 radio stations, and VIACOM and the Arbitron listener rating system known as the Portable People Meter.'There was a bill past, they certain people fighting for those on the radio, that will require all radio stations to pay royalties for playing music, combined with revenue losses in a bad economy, corporate takeovers, and skewed ratings used to snag dwindling advertising could mean the loss of an important source of information.
With Michigan Democrat John Conyers' success bringing the legislation, “H.R. 848, The Performance Rights Act,” out of committee and a step closer to congressional vote, Black station owners and their defenders say the bill will help push the already struggling stations out of business.
“This industry is already on the verge of bankruptcy, this tax will push us over the brink,” warned Alfred Liggins III, president and CEO of Radio One, the largest Black owned radio company in America with 59 stations. Radio One's revenue dropped 10 percent in 2008 and was down 30 percent in the first quarter in 2009, said Mr. Liggins, whose mother, Cathy Hughes, started the company.
“We have been forced to reduce our payroll and if this bill passes we will be forced to cut costs further, and we will have to lay off more people,” he added.
The Conyers bill, which came out of committee May 13, grants performers compensation from traditional radio broadcasters. Stations that gross less than $1.25 million a year could pay a flat fee, instead of royalties based on song plays. Broadcasts of religious services would be exempt from payments.
In simple language, the bill, according to activists, creates a performance tax or royalty fee on radio stations for airing free music to listeners. The standard in the industry has been stations playing music for free, with artists and record companies benefitting as air time promoted record and CD sales.
So we need to fight to keep out progressive thinking radio people on the RADIO....
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