Record labels have enjoyed free promotion of music by local radio through airplay, promotional giveaways and in-studio artist visits for more than seven decades.
Both Congress and record label executives have acknowledged the tremendous promotional value of radio in record sales (See more under What the Experts Say)
Record labels are clinging to a failed business model.
A large percentage of performance tax revenues would flow to the record labels, three out of four of which are owned by foreign-based conglomerates.
Organizations that pays royalties to ASCAP, BMI or SESAC, including restaurants, hotels, and retail stores are threatened by the expansion of the performance tax.
Radio has operated in the public’s interest since its inception. In 2005 alone, the average radio station ran 169 public service announcements PER WEEK with a projected value of $5.05 billion in donated airtime. Radio’s contribution to their communities exceeds $10 billion annually when direct contributions, fundraising drives and other efforts are added.
Consumers cannot make perfect digital copies of local radio - or music played in bars, restaurants and other venues.
