Radio / Television News

NAB 2009: Radio tax would hurt emerging artists, NAB tells Bono


WASHINGTON, DC – Forcing radio stations to pay a new fee for airing music to its hundreds of millions of listeners would hurt emerging artists, according to the National Association of Broadcasters.

The organization issued a release today responding to a statement from musicFIRST, an organization backed by the Recording Industry Association of America. The musicFIRST press release was built around a statement attributed to U2 lead singer Bono, in which the rock-star expressed support for an RIAA-led effort to begin charging radio stations for music aired free to listeners. Bono’s statement was aimed at supporting "many young recording artists out there," according to the musicFIRST news release.

Such a tax would have the opposite effect, actually, said NAB executive vice-president Dennis Wharton.

"The irony is that it will be the less-established performers who will be most hurt most by a performance tax. If radio stations are forced to pay to play music, program directors will be less likely to take a chance playing unknown artists and will instead stick with established musicians like Bono. New artists and niche formats will suffer, and Bono and Britney Spears will become wealthier."

The NAB release also pointed to a March interview with a WHDH-TV Boston news reporter, where Bono explained why his band chose to hold a free concert in Boston. "It’s worth remembering that U2, you know we broke in the United States through Boston and through radio stations like BCN and stuff like that," Bono said, referring to Boston rock station WBCN-FM. "We depend on radio," he continued.

The RIAA down here is continuing to press Congress to pass legislation that would require local radio stations to pay a new fee for music aired free to listeners. Countering the RIAA-backed legislation is the Local Radio Freedom Act (H. Con. Res. 49, S. Con. Res. 14), which opposes "any new performance fee, tax, royalty, or other charge" on local radio stations.

"Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air, or on any business for such public performance of sound recordings," reads the Local Radio Freedom Act, excerpted in the press release.

www.nab.org