Posted by chicagomedia.org on February 04, 2009 at 19:22:43:
In Reply to: Return Of The Performance Rights Act posted by chicagomedia.org on February 04, 2009 at 19:20:22:
NAB Calls Performance Rights Act A "Record Label Bailout"
February 4, 2009 | FMQB
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NAB President/CEO David Rehr has penned a letter urging lawmakers to oppose legislation introduced today that would that would have radio stations pay a controversial performance royalty. A measure opposing today's Congressional action is expected to be introduced shortly. The NAB has strongly fought the proposed performance royalty, referring to it as a "tax" and today as a "record label bailout."
"Local radio broadcasters consider this fee a 'performance tax' that will not only harm your local radio stations, but will threaten new artists trying to break into the business as well as your constituents who rely on local radio," wrote Rehr in his letter, sent to House speaker Nancy Pelosi. "Although the proponents of H.R. 848 claim this bill is about compensating artists, in actuality at least half of this fee will go directly into the pockets of the big record labels, funneling billions of dollars to companies based overseas."
"Although the big record labels have seen their revenues decline over the last decade, local radio broadcasters are not the reason the recording industry is losing money, and it should not be the industry to fix it," added Rehr.