NJBA Weekly Newsletter Friday, October 5, 2007

War Declared On RIAA

Radio’s biggest challenge is the new performance tax that the record industry is trying to collect from broadcasters. The NAB received an unencumbered ‘NO” from the record industry when it offered to negotiate with them on behalf of broadcaster’s right to broadcast recorded music without paying additional fees to the record companies. Congressman Berman from California is scheduled to introduce legislation this week that could cost the broadcasting industry upwards of seven billion dollars in new fees. David K. Rehr, President/CEO of the National Broadcasters Association is leading the charge against the bill. For 70 years, broadcasters have enjoyed a special relationship with record companies. Playing records and promoting artists on the radio for free while being allowed to play records at no charge to the radio station. This legist ration will cause broadcasters to pay additional fees, above and beyond ASCAP, BMI, SESAC music rights. The Berman bill would take money from broadcasters and give it to record companies. Most if not all of the major record companies are foreign companies. Rehr says the bill would take money from broadcasters that would go for local service here in America and send it overseas. NJBA will be lobbying the New Jersey delegation to keep local service alive and well by not sending more American broadcast money overseas. 

Radio 2020

A combination of NAB, RAB and HD Radio Alliance have joined together in a major program to rebrand radio and get people who take radio for granted to appreciate the medium more then they do now. The program starts with a “Radio Ready” sticker to go on the new radio equipped cell phones, PDAs, iPods and any other appliance that is equipped with a built in radio. The program of rebranding will involve massive marketing over an extended period of time. David K. Rehr will introduce the program to Broadcasters at the Mid-Atlantic States Conference June 2nd and 3^rd at Caesars in Atlantic City. 

Chairman Opposed To More Public Announcements

Kevin Martin, FCC Chairman told broadcasters last week that he is opposed to more public service obligations for Broadcasters. He did ask Broadcasters to come up with a better way of documenting their present delivery of public service as to make it easier for regulators to see all of the public interest broadcasters participate in.  

Case Dismissed

FCC refused to yank the license of WKXW-FM (NJ 101.5) telling two complainants their cases belong in court, not at the FCC. The case brought against WKXW as a result of comment made about Catholic Boys protesting the opening of a strip club in their hometown and a local water company complaining about the station’s coverage of their water quality. The programs were broadcast by the Jersey Guys during their afternoon show.  

Report Pirate stations to the FCC. www.fcc.gov/ed/pirix. 

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