FAQ

What is the Free Radio Alliance?
The Free Radio Alliance is a grassroots alliance of people and organizations that have joined together to preserve free and local radio.

Why is protecting local radio so important?
Free and local radio enriches our lives. Not only does it provide free entertainment, but radio also employs hundreds of thousands of Americans, delivers crucial information during times of crisis, reaches deeply into underserved communities and gives back to the people in the places local radio operates.

• Local radio stations employ 2.5 million people across the country and contribute $1.17 trillion towards the U.S. gross domestic product each year.

•  Local radio stations give back to the communities in which they operate, generating more than $6 billion in airtime, donations and charitable works annually.

• Local radio stations work with new and emerging artists to bring listeners new and diverse music and give these artists a chance to be discovered.

In addition to its role in the community, local radio touches more than 241 million Americans each week, helping to connect both new and established artists with a motivated fan base that purchases their music and attends their concerts. In fact, 85 percent of music listeners identify radio as the place they first heard new music.

What is threatening local radio?
Despite the free promotion that radio provides and its ability to catapult new artists to stardom, the record labels have made several attempts to impose a performance tax, or fee, on free and local radio stations. This would require radio stations to pay the record labels for use of their music, which could significantly alter radio’s role in bringing free entertainment to hundreds of millions of listeners. Congress has continually rejected the notion, based on the tremendous promotion value radio stations provide to labels and performers. In fact, nearly 200 members of Congress are currently supporting a resolution to prevent the imposition of a performance tax. [LINK TO THOMAS FOR RESOLUTION]

How else would a “performance tax” affect me?
Anyone who listens to the radio would be impacted. Reportedly, the new tax could cost between $2 and $7 billion annually. As a radio listener, the quality of news, public service announcements and community information aired on your local stations may be affected. Radio stations will be forced to generate additional revenue through increased advertisements to compensate for the new tax or decrease the quality of their service to listeners. More advertisements would mean less space for music, news, sports, weather and public service or community service programming. Smaller stations or community radio could actually be forced out of business.

How would a “performance tax” impact nonprofits in my community?
Local radio stations give back to the communities in which they operate, generating more than $6 billion in airtime, donations and charitable works annually. In 2005 alone, the average radio station ran 169 public service announcements per week..

Nonprofit organizations have traditionally fewer financial resources to create awareness about their cause or to ask for help. Radio has always helped these groups elevate their voices through public service announcements, donated airtime and fundraising drives. If a performance tax were levied on local radio, stations would be forced to use more airtime for advertisements. Many nonprofit organizations would lose the ability to get their stories out, and as a result, may not get the help they need from the community.

Where does this “performance tax” money go?
There are four main record labels, three of which are headquartered outside the U.S. These record label conglomerates would pocket a large portion of the tax.

How will the performance tax affect “low power” or community radio?
If a performance tax were levied on local radio, many smaller, community or specialty radio stations might be unable to continue operating. Even if these stations are given favorable treatment initially, the threat of an ever-expanding fee being assessed by the Copyright Royalty Board looms large, as has been the case with Internet radio.

How can I help protect local radio?
Join the Free Radio Alliance to arm yourself with the latest information. It’s easy and free. Sign up for updates using the form at the right.