In a letter to House Judiciary Committee members, Democrat Jerry Nadler and Republican Jim Jordan, NABOB President Jim Winston has let it be known he is not a fan of any new taxes imposed on broadcasters.
Winston says the proposed legislation being discussed at a hearing today on Capital Hill could financially cripple many local radio stations and harm the millions of listeners who rely on local radio for news, emergency information, weather updates and entertainment.
“As African American owned radio stations, as well as stations serving other underserved communities, have struggled to survive the downturn in the economy caused by the COVID,” he added. “We remained on-air, providing life-saving news and information, education, and entertainment to the communities we serve.”
Winston also said radio also provides free exposure and promotion for the recording industry and performers through free radio air play, interviews, introduction of new performers, concert publicity, music videos, and social media marketing. “Free radio airplay provides the recording industry increased popularity, visibility and sales for both established and new artists.”
Winston says an industry study estimates that radio’s free promotion is worth more than $2.4 billion annually to record labels. “Imposing a new performance royalty would create severe economic hardships for local African American owned radio stations, as well as stations serving other underserved communities, and in so doing would jeopardize local jobs and harm local radio listeners.”
