NJBA Weekly Newsletter Friday, February 6, 2009

Performance Tax Battle Begins This Week

Last week Quick News reported that, NJBA President Paul Rotella saw Dick Army lurking around the halls of Congress visiting his former GOP colleagues to urge them to vote FOR the recently re-introduced “Performance Tax”, putting everyone on notice that the performance royalty fight will get down and dirty in the 111^th Congress. And this is just the beginning. Expect a long fight and to see countless recording industry superstars pushing for this fight for “fairness” (pardon the pun) and a media campaign to revile the presidential campaign in support of the performance tax. This law would mandate broadcasters to pay additional royalty fees for playing music over the air. Its passage would cost radio over one billion dollars in new fees. That’s another 6% added to your operating expenses! The pressure to pass this assault on our industry cannot be overstated. Simply put, we will need all of our broadcasters to rally against this measure. Please let NJBA know of any special relationships that you or your colleagues may enjoy with our friends in Washington.

The NJBA has joined our sister state associations in passing a resolution condemning this effort and we are working closely with NASBA and NAB leadership to defeat this industry threatening bill. The purpose of the Resolution is to demonstrate to Congress the strong opposition of all 50 broadcasters (As well as Puerto Rico and Guam) associations to a "performance tax," separate and apart from the NAB's own opposition.  The document can also serve as your "outline" for talking points. To join the fight, check out our website and websites like www.NAB.com or www.freeradioalliance.org for more information about grassroots efforts to stop this offensive legislation. (A copy of the joint resolution against the tax will be posted on our web-site www.NJBA.com under news.)

DTV Transition Date Put Off Until June 12^th, 2009

Congress passed a DTV delay package this week that has extended the deadline for broadcasters to switch from analog to digital TV transmission until June 12^th.  While many stations have already cut over to DTV, the good news is that it is estimated that as few as 10% of consumers will be migrating away from free-over –the-air broadcast  to a pay-TV provider. Moreover, many consumers are very happy with their shiny new converter boxes and we are getting reports that they are "actually impressed" with their new signals and the enhanced HD programming that they are now receiving over the air. NASBA President Dennis Lyle testified before the FCC yesterday to highlight the impressive record of the many contributions made to implement this transition by local broadcasters and state associations.  

Broadcast1Source replaces EEO1Source

Litéra® Corp, the developer of EEO1Source, has just launched Broadcast1Source (www.broadcast1source.com), a new, second-generation web portal for broadcaster compliance with EEO regulations, FCC compliance and ePIF management. Broadcast1Source replaces EEO1Source, the legacy portal for EEO compliance, and includes a number of new and robust features to help radio and television broadcasters maintain compliance with FCC regulations. Broadcast1Source includes all of the features of EEO1Source, along with many others, all included within an easy to use web-based interface. Check out their website for more details of the benefits this improved version offers to stations for enhanced EEO compliance.

 Free Trial of Broadcast1Source Available to NJBA

EEO1Source users that are not currently subscribed to EEO1Source services, but use the free portions of that website, will be given a free 15-day period in which they can log into Broadcast1Source using their EEO1Source username and password. During this 15-day period (which will begin the first time they log into the Broadcast1Source site), these users will be able to access and save to their computer EEO reports and preview Broadcast1Source’s powerful feature-driven web portal and select from the Service Packs available. Of course, current EEO1Source subscribers have been automatically upgraded to the new online portal. They can access their account in Broadcast1Source by using the same username and password they use to log into their EEO1Source account.

 Another Jersey Shore Station Changes format.

Just a few weeks after Press Communications switched formats from Rock to CHR on FM 106.3, Millennium Radio (the Owner and Operator of N J 101.5) has announced that they will provide a “Shore Alternative” format on the HD-2 channel of Asbury Park’s WJLK-FM (94.3), right in the Boss’s back yard!

 Advertisers Point to a Better Month

Key advertisers are indicating that they will not be cutting back on Radio and Television Advertising in spite of the gloomy economic forecast.  Procter & Gamble issued a statement this week re-affirming its position that “that the country's largest advertiser appears on track to continue in that role.” Marketing outlays have remained at their traditional levels, and P&G is looking to take advantage of the current ad market to build a greater share of voice. Ford Lincoln-Mercury also announced that in spite of record low industry wide sales in January (Ford lead the way with units sold, beating out GM and Chrysler) Ford Motor Company will continue their successful advertising  co-op program in support of local dealerships that will funnel millions of advertising dollars to radio! Over 24% of all co-op dollars went to radio in 2008.

 New Direction at FCC

NJBA President Paul Rotella met with our FCC Commissioners in Washington again this week in support of NJBA’s initiatives and to articulate the concerns of New Jersey’s Broadcasters. The Commissioners have indicated their renewed interest in working more closely with the NJBA. Commissioner Adelstein and his staff were most generous with their time and hospitality and the Commissioner expressed real interest in the issues presented to him by our delegation.  In an address to the Federal Communications Bar Association on Monday, Commissioner Robert McDowell underscored the positive efforts Acting Chairman Michael Copps has already made at the FCC giving him an eleven on a scale of one to ten in that regard. He also acknowledged the wisdom of waiting for a permanent chair before launching into an FCC makeover. However, he set forth a sweeping vision of such reform, including more transparency in rule making procedures, the DTV transition, fairer fee structures, and improved lines of communication between Broadcasters and the Commission. The NJBA is most appreciative of the warm reception received in our Nation’s capital by this important and very busy agency.

 Liquor Council Increases Cume Age Requirements

The Distilled Spirits Council of the U.S. has mandated that 70% of a broadcast station's audience must be of legal drinking age in all jurisdictions where the station’s signals are watched. DISCUS told advertisers and station owners that they must use the smallest possible Arbitron daypart in calculating this demographic requirement -- not the station’s overall average. The FTC continues to report that self-regulation works with over 92% of advertisers voluntarily conforming to these regs.

 Broadcaster John Madden Makes History

And finally, Good ol’ former NFL coach John Madden made broadcasting and sports history last Sunday when he called the Steelers’ 27-23 Super Bowl win over Arizona from Tampa, becoming the first sportscaster to call the Super Bowl for all four major broadcast TV networks – CBS, Fox, ABC and (last Sunday) NBC. (Here’s a guy that loves football and broadcast, and he knows how to get around the dial!) Congratulations John. That’s sports; now back to the business of broadcast.

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.

Is your ABIP inspection up-to-date?  Call the NJBA office at 888 657-2346 for details.  A timely and inexpensive inspection could save you thousands of dollars in FCC fines.