• Record labels have enjoyed free promotion of music by local radio through airplay, promotional giveaways and in-studio artist visits for more than seven decades.
  • Both Congress and record label executives have acknowledged the tremendous promotional value of radio in record sales (See more under What the Experts Say)
  • Record labels are clinging to a failed business model.
  • A large percentage of performance tax revenues would flow to the record labels, three out of four of which are owned by foreign-based conglomerates.
  • Organizations that pays royalties to ASCAP, BMI or SESAC, including restaurants, hotels, and retail stores are threatened by the expansion of the performance tax.
  • Radio has operated in the public’s interest since its inception. In 2005 alone, the average radio station ran 169 public service announcements PER WEEK with a projected value of $5.05 billion in donated airtime. Radio’s contribution to their communities exceeds $10 billion annually when direct contributions, fundraising drives and other efforts are added.
  • Consumers cannot make perfect digital copies of local radio – or music played in bars, restaurants and other venues.