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Issues in Radio

During the past two Congresses, some members of Congress, at the behest of the big record labels, introduced a bill to impose a performance tax on local radio broadcasters. The Performance Rights Act would have imposed a devastating new fee on local stations simply for airing music on the radio – airing the music that provides free promotion to the labels and artists. A new performance fee could financially cripple local radio stations putting jobs at risk, stifle new artists trying to break into the recording business and harm the listening public who rely on local radio.
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Nearly everyone has a mobile phone - it's how people keep in touch with family and friends while on the go. For little cost, manufacturers can include a receiver for broadcast radio in mobile phones that would give consumers a convenient new way to access free radio service, and more importantly, improve public safety by ensuring that broadcasters' Emergency Alert System (EAS) messages and critical information reach the widest possible audience.
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In the 45-day period prior to a primary or caucus, or the 60-day period prior to a general or run-off election, Congress has limited what a radio or television station may charge a political candidate for airtime. Candidates are entitled to a lowest unit charge (LUC) - also referred to as lowest unit rate (LUR) - during these periods, which is the lowest advertising rate "of the station for the same class and amount of time for the same period." This provides a candidate the benefit of all discounts offered to a commercial advertiser for the same class and amount of time, without regard to the frequency of the candidate's advertising.
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The 112th Congress is expected to present several initiatives of concern to broadcasters because of their likely impact on advertising. These include granting streamlined rulemaking authority to the Federal Trade Commission (FTC) and addressing the trend of childhood obesity through restrictions on food marketing. Advertising revenue is critical to broadcasters. Restrictions on advertising will harm stations' ability to continue serving local communities with vital news and information and high quality entertainment programming. In addition, proposals to limit advertising are constitutionally suspect restrictions on commercial speech.
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Radio and television broadcasters are an integral part of their local communities. From promoting local causes and organizations and providing local and national news and entertainment, to acting as a lifeline in times of crisis, broadcasters are meeting the needs of their communities every day. Despite this record of public service, the Federal Communications Commission (FCC) has proposed a return to burdensome regulatory requirements on local stations under the guise of "localism." These requirements are not only unnecessary, they in fact threaten stations’ ability to best serve the diverse needs of their communities.
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Broadcasters are proud partners with the federal government in delivering lifesaving public safety messages in times of crisis. Since the 1950s, broadcasters have been the backbone of the nation’s public warning system, and even in this digital age, radio and TV are the lifelines for emergency information.
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During recent congressional deliberations about the structure of healthcare reform legislation, proposals have been discussed to eliminate the business expense deduction for the cost of pharmaceutical advertising. Proposals to eliminate the business expense deduction for the cost of advertising would represent a constitutionally suspect restriction on commercial speech protected by the First Amendment.
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Local radio and television stations believe localism is best sustained by permitting broadcasters to compete effectively in the digital multichannel marketplace. Allowing stations to compete in the marketplace by reforming unnecessary restrictions would help them maintain economic vibrancy and the ability to serve their local communities in an ever-changing and competitive media landscape. Out-of-date restrictions on ownership of broadcast outlets that do not reflect current competitive realities in the digital age should be modernized.
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Broadcasters believe that there is no need for further congressional action on the issue of indecency on broadcast stations. Imposing further additional burdensome regulations on local radio and television stations alone would not be an effective way of limiting children’s potential exposure to allegedly indecent material. Moreover, continued improvements in blocking technologies address indecency issues in a manner more consistent with the First Amendment than some of the government’s recent legislative and regulatory actions that have chilled broadcasters' speech. Following the FCC’s changes in its indecency enforcement policies in recent years, NAB has worked to show how these policies adversely impact broadcasters and their programming.
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Forty-nine states and the District of Columbia provide, either by statute or by judicial decision, protections to journalists so that they are not forced to reveal the identity of confidential sources. Yet no such protections are provided at the federal level. Compelling the disclosure of confidential sources has a chilling effect on the flow of information to the public, and discourages "whistleblowers" from coming forward with evidence of waste, fraud and abuse in government and the private sector. Congress should support legislation such as the Free Flow of Information Act, which protects the confidential relationship between reporters and their sources, promotes the reporting of important information to the public and accounts for legitimate law enforcement and national security concerns.
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