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.
NAB continues to work with the Federal Communications Commission (FCC), Congress and the cellular industry to promote the inclusion of radio receivers in mobile handsets for the benefit of mobile phone subscribers. For little cost, manufacturers can include a receiver for broadcast radio in mobile phones. This 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.
Advertising revenue is critical to local TV and radio stations that rely on those dollars to serve local communities with vital news and information and high quality entertainment. As Congress considers initiatives that impact advertising, including restrictions on food marketing and a moratorium on television commercials for new medicines, it should avoid legislation that threatens free speech and increases federal agencies' authority to excessively restrict advertising on which local stations rely.
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 Out-of-date restrictions on ownership of broadcast outlets that do not reflect current competitive realities in the digital age should be modernized.