Performance Tax on Radio

Who SAID we'd agree to pay? Congress: You'd better NOT pass this one!

2010-10-30T08:35:00.000-07:00

So, a few moments before writing this, an "alert" arrives in my e-mail. it's about the performance tax in Congress. Granted, with as many "lame duck" legislators as we expect (or hope) to have that are now in power, the passing of anything is not certain. But...the fact that this "one industry over another" issue based purely in greed has been allowed to get this far troubles me, and it should trouble you, too. The "alert" said this....
The NAB Radio Board voted today to present the record labels with a list of terms by which broadcasters would agree to embrace a performance royalty."

Now, I don't know about you, but as a business person struggling in Michigan already and in a national economy that can't make up its mind to move forward, I'm not EVER going to embrace any kind of tariff on my industry. As I've said before, the music industry as a whole has very talented people, but the record industry itself is full of GREED.

Radio now has the recording industry wanting our dollars. Radio now has the FCC wanting a brand new multi-thousand dollar box installed in all broadcast locations in less than six months, with NO reimbursement for this unfunded government mandate. And, radio has Ms. Nancy Pelosi telling the music industry she'll attach the Performance rights Act to another "must pass" bill if necessary to get it through Congress. Your president's administration has stated the white house favors a tax on radio stations playing music, with the money going to the recording industry. Question: since when has it been the role of our government to steal money from one functioning industry and hand it to another? Can you say, "Bailout?" I thought you could! That's what this administration wants to do for the music industry. Let me repeat that. The MUSIC industry. The industry that gets gold records, concert tours, use in films and TV, endorsements for singers, and millions of dollars from tickets sold to concerts at prices the average American family can't afford!

I don't agree with the NAB trying to negotiate for me. I'm NOT a member of the National Association of Broadcasters. I don't agree with the federal government having any role in private industry when the industry does not deal with life and death situations. I don't like the direction or road this takes us all down, and I intend to make that voice known at mid-term elections. I hope you do as well.

America has become the land of the GREED and the home of the BAILOUT. It's fashionable if your business model doesn't work to cry for a bailout. Notice that the radio industry isn't doing that! We have to compete with mp3 players, satellite radio and TV, and the internet. We survived the advent of the 8-track, cassette, and CD player in your cars, and we're still here. Here because of hard working, talented people who earn their paychecks. Who participate in their communities, and who help others. WION and other local radio stations are not asking for bailouts because times are tight, we're just working HARDER to keep our transmitters humming and our people employed.

The proposed "agreement" for taxing radio would cost this local station, WION approximately $1500 to $2000 per year. Money taken directly from WION, earned from the trust of our advertisers, and send it right to big record companies. Consider this: Just this week, WION gave nearly $1200 voluntarily from our broadcast sponsorships of the local "Chili Dawg Challenge" to Big Brothers/Big Sisters for their area mentoring programs.

Next year, the Federal Government will be TAKING more than that amount from us and handing it to big business. Where would YOU rather see dollars go? Please think of that on election day, and PLEASE contact your legislators.

This issue is not going to die with new people elected to office. In fact, there's no better time than now to tell the government to get its hands OUT of private business, OUT of bailouts, and let capitalism be the norm. Not greed.

(Performance) Fee-Fee Foe-......done? NO!

2010-10-02T17:00:00.000-07:00

It's back in the news this week. The so-called "performance tax" on radio stations. In a nut-shell, if you're new to this topic, it's the music industry crying about not making enough money, and lobbying your government to approve charging radio stations for the playing of music. Stations that already pay the publishers, vs. artists and record companies that already make their money by interpreting publisher's works in recordings, concerts, endorsements of products (commercials) licensing in movies, and digital downloads by the millions.

So, if the government endorses this tariff, they are literally choosing to take sides in a 2-industry dispute that they shouldn't even be involved-in! If you're familiar with this blog or my local on-air and online statements, you know that House Speaker Nancy Pelosi all but promised the music industry she'd get this idea passed through government, and..President Obama's administration is quoted as being in favor of it, as well.

News came out this week in an online trade-publication (the Radio Business Report) that "any vote by Congress this year would have to come in a post-election day lame-duck session." and, furthermore, "as the result of the general election results, they (those who are the "lame ducks") are likely to come to the lame-duck session with a list of things they want to get done in their final days, but they will have a hard time moving any legislation with Republicans likely united in anticipation of their greater power beginning in January."

This is not the end of the issue, however. As a radio station owner/operator, I'm still worried of what comes after the election and into the new term. You should also be concerned. It's human nature to sweep under the rug anything that does not seem of immediate danger. To put-off and procrastinate where issues are concerned if they're not your own. We can't let this happen. The mere fact that we had people in high offices like Nancy Pelosi all but promising another industry to steal money from radio and the Obama administration being quoted as favoring the music industry's ideas scares me, and it should scare you.

In the past few months, whispers of other industries being stolen-from in the name of "fairness" have surfaced. TV was recently on the list for the same performance tax. The music licensing agency "ASCAP" which all radio stations must pay already (representing publishers of music) attempted to sue AT&T demanding fees for each time one of your downloaded phone "ringtones" went off, calling it a "public performance." and, as we've often said on the radio, if a fee basically "taxing" a radio station for playing music we've bought and paid-for, then paid the publishers for can be passed, your business could be next. Think of it. A "tax" on your theatre ticket because there's music in the movie...that the producers already paid the rights for. Or, how about a "music surcharge" on your next visit to a local restaurant that already pays a (commercial) satellite music service, because the music industry interprets this as a "public performance?" The commercial satellite services, like radio stations already include the publisher's rights in their contract.

The bottom line is this. As we get closer to elections, know how your candidates feel about the very real possibility that this issue will come-up again, and how important it is to squelch its growth. It does nothing for local business. It does nothing for the radio industry which employs local people. It does nothing but prove that big (music) business can push our government to do unfair things and to favor one type of industry over another, which crushes the whole concept of capitalism and endorses "bailouts" described as "rights."

Our radio station, this election season is airing only network and any Federal political candidate ads because we don't want to be part of the constant barrage of claims from candidates. That does not mean we don't care. It means that we hope you make yourself an educated voter come election time, and if your candidate is unaware of the Performance Rights issue, make them aware. Know your facts, and vote according to how your candidate views the issues that are important to you. This issue is important to all radio stations, especially small ones like ours (WION) because we live, exist, and employ people in a small-town environment. One which has seen enough of business leave the area due to finances, taxes, and the general economy.

Please don't let this issue become unimportant before or after the election. We need to preserve and grow the radio industry, and we need to not let it become another example of a bailout for big business on the backs of small towns and their free source of information and entertainment, radio.

Jim Carlyle

Publishing of a June 2010 Editorial on WION Radio, Ionia, MI regarding the proposed "Performance Tax"

2010-09-27T19:05:00.000-07:00

Recently on this station, you heard us talking about the importance of your contacting your members of congress to ask them to support local radio stations like this one by their voice against a performance tax which is being debated at the federal level.

A performance tax if enacted will cost small radio stations like this one an estimated five thousand dollars per year, with the money coming from this county and being sent to record companies, supposedly on behalf of singers and musicians who claim that radio should pay them for playing their music.

As we have stated in the past, all radio stations pay fees to BMI, SESAC and ASCAP, the music licensors for composers and publishers of original music works. Musicians, on the other hand are expected to make their living by interpreting and performing those works, and by selling their interpretations in the form of CD’s, downloads, concerts, and corporate endorsements. Musicians, by the time they are played on this station are already signed by major record labels and compensated as such. Taxing radio stations to augment artists’ income is simply wrong.

Also simply wrong was President Obama’s administration endorsing this. The federal government already has too many of its hands in private business, and aside from issuing an FCC license for us to broadcast, and enforcing the protection of our frequencies from illegal and harmful transmissions, that is all the government should do within the radio industry.

Just this week, the Michigan Association of Broadcasters informs us that house speaker Nancy Pelosi has announced her support for the performance tax. A tax that could cause this radio station to change its format, eventually eliminating what few jobs we have managed to create in our county. Our current online survey of listeners indicates you appreciate the localism provided by our personalities on WION. If we are forced to pay this tax, our level of localism will suffer as the station may have to return to pre-programmed, non-local talk format, meaning less localism and less of the “information you need” here on WION.

There is also a very real danger that the performance tax, with Nancy Pelosi’s endorsement could be attached to a piece of legislation earmarked as “must pass” and that broadcasters would then be a victim of harmful and needless legislation because of personal agendas of some legislators.

If you’ve not already done so, please, visit our website at eye fourteen thirty dot com, and contact your members of congress. Tell them you value the jobs that your local station created. Tell them you value the programming on your local station, and that this tax could mean the end of local programming.

We’ve worked hard to build this station for you, not for the federal government to promote private and selfish interests of large record companies.

Your business could be next. If the federal government can endors

e taxing the playing of music, they can get their hands further into the running of your business as well.

Contact information for your members of congress and a link to directly contact house speaker Nancy Pelosi are on our website at eye fourteen thirty dot com…

I’m Jim Carlyle, owner of WION, asking you to help support local radio….and its continued growth in your community.

To contact House Speaker Nancy Pelosi, Click here and let her know a tax on local radio stations is wrong and could cost your local broadcasters' jobs, localism via cuts, and even the very existence of some small stations.

CLICK HERE FOR HOW TO CONTACT YOUR (MICHIGAN) LEGISLATORS IN WASHINGTON