Record labels and performers have thrived from radio airplay – which is essentially free advertising – from local radio stations. Record labels are urging Congress to impose a tax on local radio stations that are, ironically, their greatest promotional tool.
In previous Congresses, legislation backed by the record labels was introduced to impose a new fee on local radio stations, simply for airing music on the radio. Radio’s free promotion is worth more than $2.4 billion annually in music sales, concert tickets and merchandise to record labels. Here’s how:
- Local radio continues to be the top source for listeners seeking new music.
- Free radio airplay provides the recording industry increased popularity, visibility.
- Promotion by local radio goes beyond the music to include concert and festival promotion, on-air interviews and social media marketing.
Recognizing the promotional value of free radio airplay, Congress has repeatedly rejected the record labels’ attempts to impose a harmful performance tax on local radio stations.
The Local Radio Freedom Act (H. Con. Res. 13 and S. Con. Res. 6), which opposed any new tax, fee or royalty on local radio stations, has strong bipartisan support in the 115th Congress. Encourage your Representatives to support the Local Radio Freedom Act.