Former Sen. Gordon Smith, R-Ore., who was tapped last week to become the new head of the National Association of Broadcasters spoke to reporters on Wednesday for the first time since being named to the post. His conversation with the press, which followed an appearance at NAB's Radio Show in Philadelphia, included a bit of perspective on legislation that would impose new fees on AM and FM stations. NAB has been lobbying hard against the bill, which broadcasters say could do great harm. The music industry has argued paying a royalty is only fair since other platforms already pay performers for the songs they play.
Here's an excerpt:
"I don't care whether you call it a fee, a fine, a tax... It taxes [stations'] ability to stay in business. As someone who, by the way in the Senate was very helpful to the artist community...What I've tried to stop for them is unlawful downloading of their material. That's a different issue than saying 'my business model was broken by my neighbor and so to make that right lets break their business model.' The truth is artists need broadcasters, broadcasters need artists. There's a mutual benefit society here, a community of interest that somehow has been lost by pointing to broadcasters and saying somehow they have to make this right by us. I'm anxious for members of Congress to know that these broadcasters are a vital piece of the economic and cultural life of the community they represent. If you want to buy some radio stations in Oregon there are a lot of them for sale. I want them operating. I don't want them out of business."
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