Bill could tax radio stations for playing music
Radio stations may soon have to pay more to play music
Mike Kuhlenbeck
Issue date: 2/26/10 Section: News
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Grand View is home to radio frequency KDPS 88.1 FM, which broadcasts Edge88 and Kids Radio Mania. If the bill succeeds in its current form, it could leave a dent in station's budget.
The Performance Rights Act, also known as HR848, calls for radio stations to pay annual royalties for all music broadcast over the airwaves. This would eliminate the 80-some year tradition of "free play, free promotion."
It is standard practice for stations to transmit music without paying fees to musicians and recording companies. This enables broadcasters to promote artists, gain advertisers and increase album sales. According to the National Association of Broadcasters, radio promotion generates roughly $2.4 billion a year in revenue for artists and their labels.
Since the bill's introduction to Congress on Feb. 6, 2009, the Recording Industry Association of America and advocacy group MusicFIRST have been lobbying for its passage.
The RIAA claims that "corporate radio" earns billions of dollars from advertising at the expense of artists. The fee or "tax" for commercial stations would be based on their yearly income. During congressional hearings last year, Jennifer Bendall, executive director of MusicFIRST, said, "Today marks the beginning of the end for corporate radio's loophole."
The RIAA and MusicFIRST claim that noncommercial and college stations would be accommodated, proposing that non-commercial stations pay $5,000 a year and college stations pay $1,000. Record labels would receive 50% of the royalties collected, while musicians would take in 45% and the remaining 5% would go to backup singers.
Stephen Winzenburg, communication professor, said that even though Grand View's radio program will not be hit hard by the Performance Rights Act, he still does not agree with the provisions in the bill.
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