NAB Does Not Want A Level Playing Field
May 9, 2007
Suddenly the NAB has something new to focus their attention on. News surrounding the RIAA and others seeking royalties from terrestrial radio stations hits the NAB membership where it counts......in their wallets!!!!
David Rehr labels this as a new tax, and claims that it is unfair. So, for those keeping score, the NAB is fighting the royalty increase on internet radio (a segment that made $200,000,000 in revenue for their membership in 2006), and now is fighting the proposed royalties for terrestrial radio. Funny thing is, he has never stated anywhere that satellite radio paying these fees is unfair.
Rehr stated in a letter to every senator, "For the last 70 years, a symbiotic relationship has existed between radio and the recording industry. Radio has prospered with the use of recorded music, and record labels and performers have benefited from airplay and other promotional activities of local broadcasters. From this free airplay, the recording industry enjoys increased popularity, visibility and record sales." Rehr also notes that "performers also benefit from radio airplay and on-air interviews, often timed to coincide with concert appearances in the radio stations' service areas. "
HMMMMM......couldn't the same type of relationship exist with satellite radio?????
In my opinion, Rehr trying to label this as a tax is a poor path to getting his point across. Taxes are imposed by government for revenues that go to that government. The RIAA and artists are not a government.
For followers of the SDARS sector, it will be interesting to see just how Rehr handles this new situation. He has to choose words carefully, or he will find himself in contradictions (as has already happened a few times) his argument against the Sirius and XM merger.
Whether the NAB likes it or not, the landscape in audio entertainment has changed. The membership of the NAB might do well to adjust.
Readers can access the Rehr letter HERE
Position - Long Sirius, Long XM
5/09/2007 10:02:00 PM
SSG Has Merged. You Can Read All Of The Latest SSG Content By Clicking Here
SSG is not a Financial Advisor. Read Disclosure: HERE