Radio Stations Could be Headed for Trouble - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

2-8-2009

Radio Stations Could be Headed for Trouble

The radio industry could soon be in trouble... The Recording Industry of America (RIAA) is lobbying congress to pass a performance tax.  A tough economy, competition from satellite radio, i-Tunes and online downloading has record labels worried their profits will continue to dwindle. So, many of them are banding together and asking congress to pass the performance tax, which would charge stations a fee per song, in addition to multiple royalty fees they already pay. "BMI, SESAC, and ASCAP are a per song royalty based on the songs and the producers and the record label. The performance tax is an additional fee that would be going to the record labels depending on who owns the masters on whatever songs are being played," says WTAMU Director of Broadcasting Dr. Leigh Browning. RIAA claims this tax is necessary because the artists are suffering. Opponents of the bill say the majority of this tax money would line the record labels pockets, not the artists, and that's where the problem lies.
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