Advocacy Performance Fee

NAB, Lawmakers Are Standing With Radio Against a Performance Fee

This appeared first in the February 17th issue of Small Market Radio Newsletter.

In February, I testified before the House Judiciary Committee in opposition to a new performance royalty on broadcast radio. This decades-old legislative fight pits hometown broadcasters against foreign-owned record labels.

The recording industry has long relied upon the greatest hitmakers and the most popular musicians to advocate for a terrestrial performance royalty on broadcast radio. And while these famous names may grab the headlines, lawmakers recognize the deep connections local radio has in communities across America and with the constituents they serve.

This is not just rhetoric. Over the past two years, legislators have seen firsthand the positive impact that radio stations – small and large – had on their communities that were otherwise reeling from the pandemic. Broadcasters have done some of our best work, bringing communities together and providing trusted information that Americans have relied upon to overcome so much adversity. And we have done all of this in the face of our own unique challenges and increasingly fragile economics.

Lawmakers have always understood the unparalleled value of radio in their communities, but local radio’s incredible collective work of the past two years has heightened our brand.

As a result, our congressional support has never been stronger. It is no accident that more than 230 lawmakers support the Local Radio Freedom Act, a congressional resolution that opposes any new performance royalty on broadcast radio. Some, including our adversaries in the recording industry, dismiss this cosponsor number as little more than symbolism. Yet NAB’s conversations in the halls of Congress reveal something very different. Because of the work that stations are doing in their communities every day, these lawmakers want to focus on policies that support the radio business, not ones that undermine it, and that sentiment goes far beyond just a name on a resolution.

However, NAB takes nothing for granted and we will never give up the fight when it comes to policies that impact your stations.

To that end, we will continue to remind lawmakers that the radio industry may not trot out celebrities to make their arguments for them, but broadcasters are true superstars when it comes to providing and creating jobs in every local community in the country. Broadcast radio stations are directly responsible for more than 116,000 jobs nationwide, generating over $17 billion in economic impact. As an important platform for advertising – particularly the small businesses that make up the backbone of our economy – broadcast radio also helps stimulate the creation of more than 440,000 jobs and generate over $321 billion in economic activity. That is a significant impact, beyond the day-to-day difference stations are making in their communities.

We are ensuring lawmakers are aware that radio is where their constituents turn to on a daily basis to get the news impacting their neighborhoods or lifesaving emergency information when disaster strikes. NAB continues to tout the tremendous efforts of local broadcasters throughout the pandemic. Radio stations have offered comfort to those cut off from their loved ones, crucial information about staying healthy and getting vaccinated, a boost to struggling small businesses and restaurants, at-home concerts and a continued connection to community.

NAB’s advocacy is also underscoring broadcasters’ critical role not only as first informers, but also citizens. From food drives to toy collections, charity walks to fundraisers, radio stations are steadfast partners with organizations providing critical assistance to struggling families and making a real difference in people’s lives. Every day, tens of millions of Americans tune in to their favorite radio stations to be entertained, to be informed and to feel connected.

But no one can tell this story as well as you can.

To that end, it is extremely important for all broadcasters to reach out to their representatives and senators and explain the devastating impact a performance royalty would have on their stations and the service they provide to local communities. I urge broadcasters to explain how policies like a performance fee would hurt your ability to make payroll, invest in new equipment or serve listeners. For small market broadcasters, having to pay even a $500 performance royalty could mean cutting live coverage of high school basketball games or no longer hosting a remote broadcast from a food bank during the holidays. Reach out to us anytime at nab@nab.org to get contact information for your legislator and other resources to help you start this dialogue.

NAB will continue advocating against a job-killing performance fee, and we will win this fight with the support of all broadcasters.

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Curtis LeGeyt, President and CEO, National Association of Broadcasters

President and Chief Executive Officer
NAB

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