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Song Tax?

A

ArtSpooner

Guest
I keep hearing an ad for a group that's opposed to a proposed "song tax". They say that there's a bill in congress which will tax radio stations everytime they play a song. They also say, in the ad, that the money will go to giant record companies which are based overseas.

Anyone know anything about this? Also, how does a tax go to record companies? Taxes are supposed to go to the government. I realize that ads, particularly political ads, are not always truthful, but I also realize that we have a socialist regime in power. Is this "tax" for real?
 
Quote from The Business of Radio:

"A tax is a revenue stream that goes to government. This proposed law would cause a revenue stream to go from one group of businesses to another group of businesses. That is not a tax. It would appear that NAB has chosen to make this struggle a Republicans vs. Democrats battle which is an effort to "do democracy on the cheap".

I agree, NAB is in deception mode using the word tax. Knowing the vast majority of listeners will simply hear the word and think the government is trying to tax THEM.
 
The oldies station Kool 101 in New London, CT is also running these spots.

There is currently a group or fan page on Facebook called "No Performance Tax." Not sure how many "fans" as of this posting, but I am one of those "fans".
 
The performance tax issue; songwriters get royalties, performers don't and they want their piece of the pie. This means more cost to radio stations running the music. Even though WTKK is a talk station, they (voiced by Michael Graham) are running these spots, claiming that the perf tax means increased costs for the owners of stations like WTKK which will affect all stations in the cluster, ultimately.

And yes several huge record companies are now owned by people "overseas"

http://noperformancetax.org/ is calling it a tax, but is it royalties really?

>>The recording industry wants to impose a performance tax that would financially hurt local radio stations, stifle new artists and harm the listening public who rely on free local radio.

Another page on that site says that new artists could suffer, that 3 of the 4 major labels are foreign owned,
that some stations would switch to talk rather than paying higher royalties

At the top of one such page, it says on the upper left "Oppose the record label-led performance
tax (sic) on radio". On the upper right:"Sponsored by NAB"
 
Uh, look what just happened in Wisc....from our own Headlines here at radio-info.com:

>>On Thursday morning, five music radio stations in Wisconsin decided to make a statement against HR-848, the performance rights act currently being considered by Congress. The stations stopped playing music for one hour during morning drive... (they)all simulcasted a talk forum hosted by station personalities about what radio could sound like if the proposed HR-848 performance rights act is enacted. The proposed bill would require radio stations to pay money for artist performance fees to record companies in order to play their music.
 
Act of 96 + PPM + Song Tax = Death to Radio . Pirate Radio is the future of Radio .
 
it is my understanding that this system is in place in the EU and music has not vanished there.

I'm sorry but I think the performers should be compensated for their work by way of a performance royalty.

Greater Media is running many spots against the performance royalty, anf Peter Smyth is always being quoted somewhere about it.
 
MRBIboredop said:
I'm sorry but I think the performers should be compensated for their work by way of a performance royalty.

They are getting compensated for their work. Radio sells records, performers make money off record sales (or download sales as the case may be today). That is how it has always worked and how it should continue to work. Artists get free promotion which leads to sales and radio stations get free content. It is so funny that record companies want this "tax" yet they have promotions staffs willing to do almost anything to get a record on the air. Kind of goes against their argument doesn't it?
 
and the session players get compensated how?

they get a fee for playing the session but nothing else.

How many artists signed away their publishing rights in lousy representation deals and never see a dime.

As a performer they would get some compensation.

Do you think Sib Hashian is getting any money for the work he did on any of the Boston songs he played on from airplay in the U.S?

not unless he is listed as a composer, and to the best of my knowledge he is not.

There is a woman I know of who sang on a one hit wonder back in 1967, the song still gets airplay.
She is working in a home depot as a cashier these days.
I don't think she is "oh how happy" about it do you?
 
If artists want more money, which they arguably deserve, then maybe record labels should stop paying $500 a week to get a song played 13 times on a station in Burlington, VT between midnight and 5 AM only for the song to get no attention and never get played on the radio again.
 
MRBIboredop said:
and the session players get compensated how?

they get a fee for playing the session but nothing else.

How many artists signed away their publishing rights in lousy representation deals and never see a dime.

As a performer they would get some compensation.

Do you think Sib Hashian is getting any money for the work he did on any of the Boston songs he played on from airplay in the U.S?

not unless he is listed as a composer, and to the best of my knowledge he is not.

There is a woman I know of who sang on a one hit wonder back in 1967, the song still gets airplay.
She is working in a home depot as a cashier these days.
I don't think she is "oh how happy" about it do you?

So, by your own admission, the session players get a fee, so, they get PAID. If they think a song is going to be a hit, ask for more money up front. As for artists signing away the rights because of bad representation, that sucks, but artists need to be more careful and hire a lawyer to protect themselves and be sure they're not going to hosed.
 
it is my understanding that this system is in place in the EU and music has not vanished there.

Apples and oranges. First, the concept of "owning" a transmitter is not as common in Europe as it is in the states. Here, you apply for and own a given facility at X height, Y watts and Z location, etc etc etc. In Europe, partly because of a tradition of more government and partly because of geography lending itself to the situation, you tend to see a cluster of facilities, all with roughly equal specs and coverage, and the people "running the station" are providing content but they have little say over the height, wattage and location of their transmission facility. This means you tend to see a lot more state-run media in Europe. The Radio France building in Paris originates, IIRC, either 1/3rd of all radio & TV broadcast in the entire country of France.

The point is that with a state-run enterprise, there's less concern about complying with a rule like the "performance tax", you just add the cost to the budget and keep right on going. This is especially true in Europe where there is, in general, higher personal tax rates (although the corporate tax rate is actually much lower, in general, than in the US) and more acceptance of government having an active role in various parts of peoples' lives. Often the populace is demanding that the government INCREASE funding to various gov't agencies so they can do their jobs better. It's just very different on the other side of the pond, so to speak.

With a private enterprise, of course, it's the opposite: adding any additional cost runs the strong risk of decreased profits...and thus is automatically "bad" in the eyes of the enterprise. Given the precarious fiscal health of both the broadcasting and music enterprises, I'm not surprised both sides are fighting so viciously over this issue.

Another point worth considering is that the overall philosophy you see in Europe also means that you don't see "college" or "community" radio or TV over there like you do in the US. There's no point; the state-run radio fulfills that programming mission of serving niche audiences. And while the NAB doesn't really care about college radio, that is what the Performance Tax will be most damaging to. Not because of the costs; the fees are actually quite minimal for comparatively low-budget operations like college/community radio. It's the RECORDKEEPING that's deadly. Most commercial radio plays media off hard drives using comprehensive automation systems and thus it's not terribly hard to log everything. College/community radio typically plays music from a variety of sources off a variety of media, and they rely heavily on multiple unpaid volunteers with little or no professional supervision. That's a nigh-impossible environment to get consistent and accurate program logs from.

Besides the damage to non-comm radio that the "Performance Tax" would cause, I oppose it on the basic premise that the music industry is losing money due to a thoroughly broken business model, and they're trying to ride the eagle just a little longer by turning on the one industry that has made their business model work at all for decades: broadcasting. In other words, they're cannibalizing themselves to keep the cash flowing for just a few more years before it all comes crashing down...and they don't care that they'll destroy the broadcasting industry in the process.

Mind you, it's not like the broadcasting industry isn't really self-destructive, too....
 
The woman in "Oh How Happy" working at Home Depot..... You don't KNOW what she did with her money since 1967! - And when the writer of Louie Louie (1963) is eeeking out a living on a Montana farm, it's because he got a lousy deal by the record company, or he spent it all.

True, "tax" is an incorrect word, but NAB stands by it, no matter what.

And.... The big labels have been nailing the artists to the wall for many decades. And they'll nail them even moreso if the labels get their way with HR 848; so essentially, it would be a transfer of $$$; where the stations indirectly pay the recording artists INSTEAD of the labels. Therefore labels make more money. Funny how the big labels are "trying to help" the artists. If that were true, it would be the first time in history.

Labels are mostly foreign-owned.... Sony (Columbia), EMI, and the German one. They have about 58% of all music heard in America. Warner Bros, with another almost 20% is domestically-owned. The other 24% are a mixture of domestic and foreign small labels, some of which treat their signed artists OK.

The fees proposed for radio to pay are as high as 10 TIMES what radio now pays in royalties to songWRITERs. This will certainly croak many/most music stations.

Not only are there fees in the HR 848 bill, but there are reporting requirements and display requirements for FM, using RDS or whatever technology develops. Therefore, the labels want (as present in internet streaming) the broadcasters to PAY to play, and at the same time ADVERTISE the label's exact song being played, for free. Therefore, the labels want total control.

The days of the importance of labels is nearing an end. They don't want to go down like other technology-passe' has. Instead, they have a whole century of inventory they hope to make future money from. That past inventory comes in handy when a fever of greed sweeps over them.

Labels claim that songs are 'stolen' off of radio. AM radio? How many cassette recorders still work out there?

This bill will give a little rush to the artists, but as soon as its forgotten by Congress, the labels will say to most of the artists.... "Royalties from us? haha! Only airplay will get you royalties." Pro-HR848 artists like Judy Collins and many more don't see the big picture.

Yes, European artists DO get payment originating from the stations... but a small percentage, and even a smaller percentage for song-writers royalties. And songs "expire" after 50 years. In America, its 99 years. So, more than one factor must be considered sop that only apples and apple are compared. Europe: Some Beatles songs will be royalty-free in 3 years!).

The plan is 50% of proposed new royalties go to labels and the other 50% goes to artists. But that last 50% will be much less, as there will be "Administrative costs" charged by labels, carving out a lot of that 50%.

True, unless one is a big artist, who is big enough to boss around its label, the big labels generally screw the artists. Radio stations are the artists' friends. Labels are artists enemies in most cases. Name one artist who says he/she/they were treated fairly by their big corporate label.

I sure hope that our Congress is smart enough to croak this bill.
 
JIBGUY said:
I sure hope that our Congress is smart enough to croak this bill.

Correcting myself.....

I sure hope that our Congress receives more campaign contributions from pro-broadcasting PAC's than campaign contributions from PACs of the labels.
 
Listening to and seeing the ads on TV, I'm thinking Karl Rove wrote the script.
Whip up the fear factor, and call a performance fee a TAX! Everyone hates that word,
 
So does Jim's Plumbing in R.I. have to pay a fee ? Because Jim's Plumbing phone number is 8 6 7 5 3 O 9 .
 
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