NAB Radio 'Tax' Talk Questioned
The National Association of Broadcasters' campaign to characterize a music industry royalty collection effort as a "performance tax" appears to have hit a snag. At least one member of the powerful trade group's board does not agree with its nomenclature.
After using NAB's wording in his testimony before the Senate Commerce Committee on Wednesday, Russell Withers, who owns 30 radio stations and six TV stations, said he believes the verbiage is inaccurate.
"I disagree with 'performance tax.' It's a 'performance fee,'" he said in response to a question from New Hampshire Republican John Sununu. The NAB has released a flurry of documents that portray the campaign to pay musicians for songs played on AM and FM radio as a "tax."
Nevertheless, Withers upheld NAB's argument that radio and record labels have "always enjoyed a mutually beneficial relationship -- free music for free promotion." He called the music industry effort an attempt to compensate for "slowing sales and a flawed business model for the digital age."
Read more about the hearing in Technology Daily's PM Edition.
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