NAB: To Fight Performance Fees

In response to Thursday's announcement by Rep. Mel Watt (D-NC) that he will introduce legislation that would negatively impact local radio stations across America, NAB Executive Vice President of Communications Dennis Wharton issued the following statement: 

"NAB strongly opposes a new performance tax that would kill jobs at America's hometown radio stations while diverting millions of dollars to offshore record labels. We continue to support private, company-by-company negotiations that are driven by the free market, as is reflected by recent deals between broadcast radio stations and independent music labels. We appreciate the support of 154 members of Congress who know that local radio remains the premiere platform for exposing new music and generating sales for record labels." 

"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 such public performance of sound recordings," reads the Local Radio Freedom Act.

In recent months broadcasters and music labels have entered private-market agreements, without the need for government intervention, which permit radio stations to pay sound-recording performance royalties in exchange for lowered digital performance fees. Examples of such agreements are those between Clear Channel and RPM Entertainment, Entercom and Glassnote Entertainment Group, and Beasley Broadcasting and Big Machine Label Group.