The National Association of Broadcasters (NAB) released a response addressing claims made by the musicFIRST Coalition, an organization backed by the Recording Industry Association of America, on June 5, 2008.
Commenting on statements made by musicFIRST, NAB Executive Vice President of Media Relations, Dennis Wharton issued the following statement:
"musicFIRST's latest missive fundamentally distorts today's radio market and misleads policymakers on the devastating consequences of a potential $7 billion tax benefiting RIAA and the foreign-owned record labels.
"Ironically, the 'comparison' put forth today by the RIAA-backed group fails to acknowledge the most significant aspect of this entire debate: the comparison between increased free radio airplay and the resulting hike in music sales.
"Make no mistake: America's hometown radio stations expose musical artists new and old to 235 million listeners every week, generating untold millions in record sales for the music industry. Indeed, it is the unparalleled promotional value of free, local radio that has made America's music industry the most successful in the world.
"NAB welcomes this debate, and we encourage Congress to call record label executives to the table and answer to their well-documented decades-long abuse and exploitation of musicians."
To date, eight U.S. Senators and more than 200 House members are on record in opposition to any new "performance fee, tax, royalty or other charge" for local radio airplay of music. Senators that have expressed opposition to the RIAA-backed effort include Sens. Blanche Lincoln (D-AR), Roger Wicker (R-MS), Wayne Allard (R-CO), Sam Brownback (R-KS), Lisa Murkowski (R-AK), Ben Nelson (D-NE), James Webb (D-VA) and Jon Tester (D-MT). The House resolution, introduced last year, was authored by Reps. Gene Green (D-TX) and Mike Conaway (R-TX).
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