NJBA Weekly Newsletter Friday, February 20, 2009 

SoundExchange Rates Set Through 2015

The NAB has concluded negotiations with SoundExchange covering AM and FM radio stations streaming rates and fees through 2015. The new agreement provides discounted fees of about 16% for 2009 and 2010 and sets rates for 2011-2015, which will gradually increase each year through 2015, from $.0015 per performance this year to $.0025 by 2015. The agreement also removes a few current restrictions including those limiting the frequency of airplay for an artist during a four hour period.

Over 100 Lawmakers Co-Sponsor Local Radio Freedom Act

As of this writing, one hundred and ten members of the House -- 73 Republicans and 37 Democrats -- have co-sponsored the Local Radio Freedom Act, re-introduced this week by Reps. Gene Green (D-TX) and Mike Conaway (R-TX). The resolution reads, "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." The resolution was initially introduced last year, and ended up with the support of the majority of the House; the reintroduced resolution has more than twice as many initial co-sponsors as last year's. The undeniable fact is that RIAA's plea for a record-label bailout will put thousands of radio jobs at risk and threaten the economic viability of a recording artist's greatest promotional asset: Free-Over-the-Air Radio! The NJBA has sent a letter of endorsement to every one of our Congressional representatives and President Obama supporting this measure and recommends that all members contact their representatives and urge them to support this important piece of legislation. Members can visit our website to see a copy of our letter and to access their Representatives in Congress via phone or email.

Maintain Market Identity in Hard Times

Radio Sales Guru Pat Bryson advises how your clients can weather the economic storms by reminding them that McDonalds continues to advertise to hungry customers. They do not take the chance of allowing their market share to erode to other competitors. They know that if a company fails to maintain its market identity during an economic downturn, current and future sales are jeopardized. Maintaining market identity costs much less than rebuilding it later on. History shows that the companies that fare the best during tough economic times do so by continuing to build their brands regardless of the temporary economic conditions. These companies actually increase their advertising and marketing spending during recessions.

DTV Takes Major Step Forward This Week

Over 420 television stations switched to all DTV broadcasts this week around the nation; and the world still turned! The sun came up and no one died. Viewers who depend on over-the-air broadcast signals for their TV programming must install and program a digital to analog converter box to continue receiving these stations over-the-air for free. Questions should be directed to the FCC help line at 1-888-CALLFCC (1-888-225-5322).

Arbitron Announces New PPM Strategy

Arbitron CEO Michael Skarzynski announced a revised  PPM strategy  that would include funding for development of the Personal People Meter’s next generation, allowing listing data to be compiled from a software-only based solution that would enable Arbitron to gather data from several personal electronic devices including laptops PDA’s and mobile phones.

NJBA Alternative Broadcast Inspection Program 

In this challenging economic environment the New Jersey Broadcasters Association is adamant about protecting your station from a disabling monetary fine due to operational or facility violations that you may not be aware of!  This letter and the enclosed brochure explain our NJBA Alternative Broadcast Inspection Program.  When you sign up your station(s) for an NJBA-ABIP Inspection, the FCC is notified that your station is formally participating in the NJBA-ABIP and will therefore be operating at a higher level of station regulatory compliance than might ordinarily be the case.  In return, the FCC has agreed that any station which successfully completes our NJBA-ABIP program has freed itself, with some exceptions, from the risk of FCC inspections for a period of three years, as well as from monetary fines that might have resulted from an FCC inspection that was not preceded by a successful ABIP inspection.

Your station's successful participation in the NJBA-ABIP program is clear evidence of the Station's positive attitude toward regulatory compliance – a significant factor in your favor in the event the Licensee is ever involved in mitigating a violation with the Commission.  A station that participates in the NJBA-ABIP Program receives the same type of input that for example an outside accountant/auditor provides to your financial department; namely the NJBA-ABIP Inspector verifies that adequate FCC Rules compliance systems are in place (or not), that station personnel are knowledgeable and diligent about compliance (or they are not), that your facility is operating as licensed (or not) and that certain things need to be attended to (or not). To request a copy of the agreement, please contact Mary at 1-888-657-2346.  The NJBA-ABIP is a paid member benefit!

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.