The National Association of Broadcasters hosted a virtual town hall Thursday to brief NAB members on the issues it will be fighting for as Congress begins its 118th session and the House of Representatives switches party control.
NAB President and CEO Curtis LeGeyt was joined by senior executives and public policy experts to offer updates on the association’s work, priorities and initiatives. LeGeyt opened the town hall and shared a few of the organization’s top priorities for 2023.
Here are few radio related priorities the NAB will be battling:
The Performance Tax
It’s an issue that never seems to go away.
The NAB says Congress has repeatedly rejected the record labels’ attempts to impose a harmful new performance tax on local radio stations. “This would financially cripple local radio stations simply for airing music. It would jeopardize local jobs, stifle new artists and harm local radio listeners. Broadcasters strongly support the Local Radio Freedom Act (H. Con. Res. 33, S. Con. Res. 9, 117th Congress), a resolution that opposes a performance tax and was supported by more than 250 bipartisan members of the House and Senate during the 117th Congress – including a majority of the House of Representatives. Broadcasters stand ready to work with Congress and the recording industry on a balanced music licensing proposal that promotes innovation and recognizes the benefit to artists and listeners of radio’s free, locally focused platform.”
Ownership Rules
While this one is about to get a closer look from the FCC, it’s not an issue broadcasters agree on 100 percent. The NAB says as competition from Big Tech increases, policymakers should urge the FCC to modernize TV and radio ownership rules to reflect the current marketplace and account for the rise and influence of digital media. “This is particularly important as it relates to restrictions on local radio ownership, which have not changed since 1996. To continue offering a free service available to all, broadcasters must be able to compete on a level playing field for audiences, advertising and investment.”
While many of the larger companies are pushing for more deregulation, smaller broadcasters do not agree that owning more stations will solve any financial problem radio companies may be having.
Advertising and Taxes
The NAB wants to keep a close eye on this one. Right now, under the U.S. tax code, advertising is treated as an ordinary and necessary business expense deductible in the year it is incurred. However, in the last few years, some in Congress and state legislatures have proposed changes to the tax treatment of advertising to raise revenue. The NAB says, “This would have a devastating impact on radio and television stations, as well as local newspapers, by making it more costly for businesses to advertise. Local media rely on ad revenue to serve their communities with essential news, emergency information, sports and entertainment programming. The proposed changes also raise significant First Amendment concerns and ignore the important consumer benefits that advertising provides.”
Take a look at the NAB’s full policy agenda HERE.
