For more than 50 years KDKD AM and for over 30 years KDKD FM has played a signficant role and driving force behind record sales in the U.S. Now, a legislative initiative pushed by the Recording Industry Association of America (RIAA) and the foreign-owned record labels would create a new regime requiring local radio broadcasters to pay a fee, what we consider to be a "Performance Tax" on every radio station simply for playing music.
1. Local Radio makes stars out of new, emerging artists and puts money in the record labels pockets through free promotion.
Free radio airplay promotes record labels and artsits, and generates $1.5-$2.4 billion annually in music sales.
Radio stations reach an audience of 235 million people every week.
Artists recognize that radio is their strongest promotional tool. Artists and record labels all ask us weekly to help them promote new and upcoming artists to our listeners.
Labels have given radio stations gold and platinum albums in appreciation of the millions of record sales radio play generates.
2. Congress has historically recognized the value of radio's free promotion.
In 1971 and 1976, Congress refused to grand a performance tax.
In 1995, Congress again opted not to impose such a tax on the industry. Senate reports are available upon request that there is a "mutually beneficial economic relationship between the recording and traditional broadcasting industries".
3. Local radio should not have to subsidize the failing business model of the foreign-owned record labels.
Although the recording industry has seen its revenues decline over the last decade, local radio broadcasters are not the reason the recording industry is losing money, and it should not be the radio industry to fix it.
Three of the four largest record labels are internationally based, which means that such a tax would take money OUT of U.S. communities and send it overseas.
4. A tax on local radio would hurt artists and listeners.
The record labels would like for you to think this is all about compensating the artsits, but in truth the record labels would get at leasst 50% of the proceeds from a tax on local radio.
A tax could reduce the variety of music radio stations play, and all but eliminate the possibility of new artists breaking onto the scene. The tax could particularly affect smaller, minority-owned or smaller market radio stations, some of which may have to switch to talk-only format or shut down entirely.
5. A tax on local radio would put jobs and communities at risk.
A performance tax puts the 106,000 jobs in the radio industry in jeopardy at a time when a weak economy is already taking it toll on American jobs.
The revenue loss incurred if a performance tax were enacted could also force may radio stations to significantly reduce public service and charitable activities in the communities they serve.
WHAT CAN YOU DO TO HELP?
We encourage you to call, email or write your members of Congress and ask them to oppose the Performance Tax and sign on as co-sponsor to the Local Radio Freedom Act.
We also encourage you to spread the word to radio fans about the negative implications of a performance tax.
HOW WOULD KDKD REACT IF SUCH A TAX WERE DICTATED BY CONGRESS?
"We would certianly have to look at ways of increasing advertising rates to cover the tax. This would certainly be a strain on many of our advertisers and local businesses that depend on us to deliver their messages. We may be forced to look at staff reductions or even format changes to some kind of talk, news or sports programming. If we are not playing music...then we would not be paying the tax.
These kinds of changes would have a ripple effect with listeners...and advertisers...and then who knows that the outcome would be. Local charities and non-profit organizations depend on us to get the word out about their events and fund raising activities...these kinds of station involvments may have to be cut back as well...hurting our communities even more.
Congress has voted against this legislation numerous times...but this time there is a more concentrated effort by the RIAA to get this passed. Thanks for taking a few minutes to read through this material...and we thank you for any actions you take on our behalf to let your voice be heard in Washington."
If you want to discuss this further, please contact me. Bob May, GM
660-885-6141 or email me at bob@kdkd.net
Here is a llst of our Missouri Senators and Representatives with D.C. contact info:
