NJBA Weekly Newsletter Friday, January 30, 2009 

Radio Continues to be Consumers’ Choice

Millions of Americans will be listening to this Sunday’s Super Bowl on radio! National Association of Broadcasters President/CEO David Rehr says, "There's never been more innovation in radio than there is today." As evidence, he noted that some 100 companies featured new radio devices at the recent Consumer Electronics Show, in a range that encompasses HD Radio to MP3 players. Eight of the top 20 free apps for the iPhone are radio applications, according to the NAB and Radio Advertising Bureau. 

To TDV or not to DTV, that is the Question…

This week, the US Senate voted to move the mandatory DTV Cut-over date to June 12^th. However, the House failed to pass their own version of this DTV transition delay bill, leaving the public and broadcasters in a veritable quandary. The confusion about the delay requested by the new administration will leave broadcasters with precious little time to “re-educate” the public about this last minute change. It is estimated that as many as 250,000 NJ homes are not ready for the analog to digital conversion. This is in addition to those viewers residing in signal fringe areas of limited reception, which could leave them in the dark due to the unforgiving cliff effect of digital’s “all or nothing” reception attribute. We expect the House to take this matter up next week, with a vote coming as early as Tuesday. If the DTV delay legislation stalls, February 17, 2009 will remain as the transition date.  

NJBA President Meets with Key Lawmakers and FCC

NJBA President /CEO Paul Rotella met with several members of New Jersey’s Congressional delegation and our two US Senators, and Governor Corzine, this week in Washington. Rotella, along with NJBA Executive Committee member Bob McAllan, also visited with FCC Commissioners Adelstein and McDowell to highlight the legislative and business concerns of NJ Broadcasters, and to talk about ways to help Broadcasters as they face unprecedented challenges and regulatory concerns. In addition, the NJBA is seeking funding to update NJ’s obsolete EAS apparatus, which will benefit every citizen in the Garden State.  

Performance Tax Rears its Ugly Head Once More

As predicted by QuickNews, our “friends” in Congress are once again trying to establish the creation of a “Performance Tax”, which would have a crippling effect on NJ Radio stations. While on the Hill this week, we learned that the recording artist lobby is bringing pressure to bear on GOP lawmakers who oppose this misguided measure, by bringing none other than Dick Army to pressure his former colleagues to support this effort. In addition to perhaps forcing stations off the air and changing formats, the proposal will inevitably have a chilling effect on the miracle of free over the air radio in helping emerging recording artists showcase their talents. With our business facing the worse advertising climate in decades and with the recent layoff of hundreds of loyal, hard-working people in NJ radio over the last few months, the passing of the performance tax is certainly ill-advised, and the NJBA will vigorously oppose this measure. And remember, ASCAP and BMI will begin negotiations to renew the radio industry’s contract with the Radio Music Licensing Committee. The current contract with the two performance rights organizations ends on December 31.  

NJ’s Lisa Jackson Confirmed as New EPA Chief

Congratulations to former DEP Commissioner Lisa Jackson, whose nomination to head the EPA was confirmed by the Senate late last week. NJBA President met with Ms. Jackson in Washington to congratulate this friend of NJ Broadcasters. Jackson said that she is excited to be able to play a part in the new administration and to continue to serve the people and causes she loves. To be sure, New Jersey certainly has the ear of the new President, and we wish Lisa well!  

New Jersey Has a Seat at the Table

Congratulations to Senator Frank Lautenberg on his re-appointment to the 111th Congress’ Commerce Committee.  The Senator, who celebrated his 85^th birthday last Friday, continues to be a faithful friend to New Jersey Broadcasters and we are pleased that we will continue to have the benefit of his advocacy in these challenging times.

Has your station received its ABIP inspection this year?  Call the NJBA office (609) 860-0111 for details.  A timely and inexpensive inspection could save you thousands of dollars in FCC fines.

 QuickNews is provided for general information purposes only and should not be relied upon as legal or tax advice pertaining to any specific factual situation. Legal and tax related decisions should be made only after proper consultation with a legal professional of your choosing.