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Posted By: Jim Liddane on: 05/27/2009 14:45:20 EDT
Subject: RE: What's This New Tax for Free Radio?

Message Detail:
Well, I suppose the best way to drum up opposition to any royalty is to call it a "tax" and then to claim that it is "foreign".

A "foreign tax" no less - they'll be throwing tea into Boston Harbour next.

But both claims are untrue.

First of all it not a tax. It is simply a royalty payment to performers by land-based radio stations - in fact the same royalty payment already being made by internet radio stations in the USA to performers.

Secondly, it is not a "foreign" inspired royalty, unless that is you believe that the people proposing it - namely the Recording Industry Association of America and the American Federation of Television and Radio Artists, the House Judiciary Committee Chairman John Conyers and House Foreign Affairs Committee Chairman Howard Berman, not to mention Neil Diamond, are all foreign agents.

And the royalty is mot exactly going to bankrupt any station.

The smallest radio stations - $100,000 in revenue or less - would only pay $500 a year for the rights to broadcast recorded music.

Stations with $100,000 to $500,000 in revenue would pay $2,500 a year.

Royalty payments would be $5,000 annually for mid-sized stations - those with $500,000 to $1.25 million in annual revenue.

And it is not even new.

Cable, Satellite, and Internet radio already pay performance royalties, but land-based radio does not, so all it does is even the pitch for all broadcasters.

So, put away the muskets - it is not yet time to head for Bunker Hill.

Of course there is an irony here.

When this was proposed some years ago for internet radio, the land-based stations sat on their hands and refused to help their internet relations.

Now, it's their turn.

What goes around, comes around.

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