It's hard to believe the foreign-owned record labels are asking for a handout from Congress. The major record labels, three of four of which are based overseas, are asking Congress to impose hundreds of millions in new fees on local radio stations to help rescue their failing business model.
It's hard to believe the foreign-owned record labels are asking for a handout from Congress. The major record labels, three of four of which are based overseas, are asking Congress to impose hundreds of millions in new fees on local radio stations to help rescue their failing business model.
The labels argue the money is for "struggling artists," but in truth, at least 50 percent of this fee would be funneled to the labels. And aren't these the same record labels that have long abused and exploited recording artists?
What the record labels also fail to acknowledge is that free and local radio is struggling too. Ad revenues have plummeted and jobs have been cut, a situation that will only be made worse if the record labels get their way.
If it weren't for radio airplay of music, where would the labels and performers be? Radio is the number one way listeners discover new music, and free radio airtime and promotion of music generates $1.5 billion to $2.4 billion in annual sales for labels and artists.
Thankfully, U.S. Rep. Pete Visclosky, D-Ind., has been a champion for free local radio and the communities we serve, opposing this new fee, which many consider a "performance tax." Visclosky is cosponsoring the Local Radio Freedom Act, which would keep radio free from these ridiculous fees.
If enacted, a performance tax could force Indiana radio stations to cut more jobs and reduce the fund-raising and public service initiatives for local charities throughout the state -- all for the benefit of the foreign-owned record industry moguls.
I am grateful that Visclosky is working to defeat this detrimental legislation. You can help bolster these efforts by weighing in with federal representatives who have not yet taken a stand for radio at http://www.saveyourradio.org. Together, we can work to keep jobs in our community, protect our nonprofit organizations and keep radio free.
Leigh Ellis is President of Radio One Communications. The opinion expressed in this column is the writer's and not necessarily that of The Times.
Posted in Opinion on Thursday, August 27, 2009 12:00 am | Tags: Commentary, Guest Commentary, Entertainment, Music, Radio
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