For years, the record labels have been begging Congress to impose a performance fee on local radio stations, simply for airing music free-of-charge to you and me.
These music companies don’t want to talk about the billions of dollars in free promotion local radio stations provide to the labels and performing artists each year. They’d rather talk about the handful of radio stations that are owned by bigger companies. And it’s true… six radio companies own just over 13% of all stations in the U.S. That leaves about 87% that are not.
You know what is also true? There are only three major music groups – Universal, Sony and Warner, two of which are foreign owned, and they are making billions. While they claim to need Congress’s help in taking money from your local radio stations, they are literally raking it in hand over fist. One article suggests they are turning over $2.5 million every HOUR.
Let’s set the record straight – at a time when local radio stations are still trying to recover from the devastating impact of the pandemic, a performance tax would be crippling. It would likely result in job loss, less community support and definitely less music for you and me. And the artists? They would lose one of their biggest promotional tools to reach new fans. All so that billion-dollar companies, mostly based overseas, can get bigger.
If this doesn’t make sense to you, take heart that it doesn’t make sense to Congress either. That’s why nearly 200 legislators are standing up for local radio listeners by supporting the Local Radio Freedom Act – a bill that opposes a performance tax.
Add your support for local radio – click here to thank these members of Congress and ask your legislator to support your community!