FROM THE DETROIT FREE PRESS BY KATHY STINEHOUR
As general manager of Radio One’s Detroit-area stations — WCHB-AM (1200), WHTD-FM (102.7), and WDMK-FM (105.9) — I am very concerned about the Performance Rights Act, which was authored by U.S. Rep. John Conyers and recently passed by the U.S. House Judiciary Committee. This legislation has the potential to devastate hometown radio stations across America, threatening listeners’ access to free music and depriving musicians of an unparalleled promotional platform.
First, nobody is talking about the fact that radio stations promote artists’ music every day, which causes people to go out and buy the artists’ recordings. We drive music sales and increased attendance at concerts. Neither record companies nor artists pay anything to radio for this exposure, which some estimate is worth $2.4 billion annually. We do not get paid by the record companies to play music, and we don’t get a percentage of any sales that result from our promotional efforts.
Also, at least 50% of the funds from the new fee would go into the pockets of foreign-owned record labels so they can pay $10 million in annual compensation to their CEOs, like Doug Morris of Universal. The artists will never see that money. This legislation mandates a transfer of funds away from your community to foreign-based record companies.
The attempt to deflect concern about this new fee with the argument that stations with revenues of $100,000 or less will have to pay only $500 annually is of little comfort to Radio One, which anticipates it may have to pay as much as $12 million annually for its 52 stations. In these harsh economic times, such a fee will adversely impact our ability to sponsor free events, provide critical information and donate to charitable causes. We can’t let that happen.
