Performance Tax on Radio

In these tough economic times radio stations across the country are facing a serious economic threat. Congress is being asked by record companies to consider imposing a new fee on radio stations for playing the music that you currently enjoy.

The Impact

Imposing a new performance fee will force many stations across the country to stop playing music. The irony is this new fee that is being proposed in order to help struggling artists, will actually send half of this proposed fee to the record companies, many of whom are owned by foreign corporations, and not to the artists that they claim it will help.

For decades, radio stations have played and promoted music from artists and record labels. Radio stations have always had the liberty of playing music free of charge, and meanwhile artists and record labels have taken advantage of this free promotion. Most importantly, listeners all over the United States have enjoyed listening to music from a variety of radio stations and genres.

The new performance tax will put a financial strain on radio stations across the country. It is unclear how deep the impact will be or the size of this performance tax, but nonetheless it may impact whether your local K-LOVE station stays on the air.

What you can do:

Over the upcoming months, this tax will be voted on in Congress, and there are many ways to get involved:

• Voice your concern. Contact your local member of Congress and ask them to stop the Performance Tax on radio.
• Find your House of Representatives member
• Encourage them not to support Bill HR 848
• Find your Senator
• Encourage them not to support bill S 379
• Spread the word. Tell your friends about the impact that this tax will have and encourage them to contact their local member of Congress.
• Stay informed. K-LOVE will send you updates on these bills in Congress and let you know how you can make a difference.

History

Over the years Congress has repeatedly rejected efforts to impose new fees on radio, but record companies continue to present a one-sided view to Congress. Studies have shown that artists receive great promotional benefit from radio playing their music and both musicians and radio have benefitted from this relationship for many years.

K-LOVE already pays hundreds of thousands of dollars each year to songwriters and their publishing companies for the music we play because they do not benefit from record and concert ticket sales like the artists do. Outside of K-LOVE, many other Christian music radio stations will either fail or be forced to change formats, because they just will not be able to afford the dramatic increase in expenses that these fees would cause.