The National Association of Broadcasters and musicFIRST continue to battle over performance fees for terrestrial radio broadcasts. In the latest volley, musicFIRST has sent a "gift" to NAB president David Rehr.
See, the NAB has been consistently calling the performance right a "tax" - a designation that has been called into question by even lawmakers.
So musicFIRST sent the Rehr a copy of the American Heritage College Dictionary, “to help the NAB more accurately understand the meaning of a tax.”
Even Senator John Sununu (R-NH), at the Senate Commerce Committee hearing on the Future of Radio, asked NAB Radio Board member W. Russell Withers why he referred to performance fees as a "tax" when the word implies that the government would be collecting the money.
Perhaps the dictionary will help answer that.
"A performance right is not a tax," said Martha Reeves, a founding member of musicFIRST. "It is fair compensation for artists and musicians who, through their voices, their inspiration, and their hearts and souls, bring music to life on the radio. It is compensation earned by artists and musicians that is long overdue."
"It seems that the NAB will do anything to avoid paying artists," added John Simson, Executive Director of SoundExchange and also a member of musicFIRST. "They tried calling royalties a 'tax' years ago when they moved heaven and earth to avoid paying songwriters, but they lost that one."
NAB spokesman Dennis Wharton fired back by completely avoiding the issue and instead said that the recording industry is trying to "bail out a failing business model."
"It is undeniable that free airplay of music on America's hometown radio stations generates millions of dollars in annual revenue for both artists and the foreign-owned record labels," Wharton added.
Undeniable? Tell that to Bruce Springsteen, who's album "Magic" debuted at No. 1 on the U.S. Billboard 200 chart and sold about 335,000 copies in its first week - despite very little radio airplay. According to Fox News, Springsteen's album was snubbed by radio giant and NAB member Clear Channel, which reportedly sent out an edict to its classic rock stations not to play tracks from "Magic."
Undeniable indeed. Maybe we need to send another dictionary to Mr. Wharton.
[FMQB]

NAB spokesman Dennis Wharton fired back by completely avoiding the issue and instead said that the recording industry is trying to "bail out a failing business model.">>
That's pretty funny, coming from the NAB. No sense of irony, I guess.
My two favorite asses duking it out.
RIAA vs. NAB ...... gotta love this.
"The Terrestrial Tax" will cause more commercials which will cause less listeners which will cause lower commercial billing which will cause even more commercials and even less listeners.... Which will cause more Satellite subscribers!! ...... gotta love this.
I wish Mel and Gary had the Balls to do something like this.
Funny... Very Funny.
i still think that Rehr holds a striking resemblence to Stuart Smalley.
I'm good enough, I'm smart enough, and doggone It, people like me!