Texas Sen. John Cornyn was the radio industry’s chief defender in the Oct. 15 Judiciary Committee hearing on legislation creating a Performance Tax that would pour billions of dollars into the coffers of record labels in Europe and Japan – assuming music radio stations survive.
A Performance Tax would
cost Texas radio stations more than $136 million in the first year.
While the bill passed on a voice vote, the bill sponsor, Chairman Patrick Leahy, D-Vt, acknowledged more study is needed and suggested a floor vote is not near.
There are 26 Senators and 251 Representatives on-record opposing the measure.
Nonetheless, broadcasters are concerned the measure could be slipped into other must-pass legislation before Congress recesses at the end of the year.
Cornyn was the most outspoken opponent of a Performance Tax at the hearing and offered two amendments that were ultimately rejected.
The amendments would have:
- Delayed implementation of the Performance Tax until the FCC has studied and confirmed that there would not be any direct or indirect negative impact on diversity on the airwaves
- Given artists the power to opt their music out of free Radio – a “do not play” list that purportedly would keep Radio a free platform
“Proponents of the Performance Tax argue this measure would achieve ‘platform parity’ and compensate them for their intellectual property,” said TAB Vice President Oscar Rodriguez.
“But they refuse to acknowledge that free, over-the-air radio is not on par with pay-radio.
“Listeners can’t steal recordings over the air, pay-radio is not held to any local community service standard, and broadcast radio provides a promotional value unmatched by any other delivery system,” he said.
“And if this is about payment for intellectual property, where in this legislation is there a requirement that performers and labels pay broadcast radio for the extraordinary value of the listener loyalty, brands and promotional aspects we’ve created as a result of our own intellectual property?”
Radio broadcasters will be called on in the coming weeks and months to redouble efforts to educate listeners and Members of Congress about the impact a Performance Tax would have on stations’ formats and their ability to continue the unmatched public service they provide local communities.
