Dear Broadcast Leader:
I
would like to start off by sharing some great news on our efforts to fight the
performance tax. We now have the support of 220 House members, more than a majority
of the House, for anti-performance tax resolution H. Con. Res. 244, the Local
Radio Freedom Act. Currently, 13 senators have expressed their support for the
Senate companion bill, S. Con. Res. 82. This is a great milestone, making it increasingly
difficult for the record labels to garner traction with their performance tax bill.
A key message for broadcasters is that radio stations are the engine driving
billions of dollars into the pockets of record labels and artists. To this point,
NAB released a study conducted by economic research expert Dr. Jim Dertouzos
revealing that $1.5 to $2.4 billion in annual music sales are generated through
free radio airplay. This is a conservative estimate because it does not even take
into account radio airplay's promotional role in increasing ticket sales at concerts,
which was reported to be a $2.8 billion a year business in 2006 by Billboard.
On June 11, NAB Radio Board Chair Steve Newberry and First Vice Chair Charles
Warfield testified at a House Judiciary Subcommittee on Courts, the
Internet and Intellectual Property hearing on H.R. 4789, the performance tax bill.
The hearing garnered extensive media coverage, as singer Nancy Sinatra testified on behalf of artists.
Then on June 26, the same subcommittee, chaired by Rep. Howard Berman (D-CA-28),
cleared the label-backed performance tax bill by voice vote. The subcommittee
is made up of a significant number of members of Congress who represent artist
and record label populations. Although the outcome was expected, NAB and our allies
worked aggressively prior to the mark-up to raise questions and concerns among
the members and staff. We also ran an ad in several Hill publications voicing our concerns. As a
result of this effort, members on both sides of the aisle discussed a variety
of concerns with the bill. While the subcommittee ultimately cleared the bill,
there appeared to be a reasonable amount of discourse and lack of certainty on
the actual content of the legislation.
Even though we have a majority
of House members backing our anti-performance tax legislation, the fight is not
over. NAB will continue its work in opposing the record label-backed legislation.
NAB also continues to work hard to ensure Americans are prepared for the transition
to digital television (DTV). The House Committee on Energy and Commerce Subcommittee
on Telecommunications and the Internet held a hearing on June 10 on the digital
television transition. The hearing focused on the progress that broadcasters,
retailers, cable companies and the government have made toward transitioning to
digital television. It also addressed plans by the FCC to establish Wilmington,
N.C., as a test market for the DTV transition. Paul McTear, president and CEO
of Raycom Media, Inc. and member of the NAB Television Board testified on behalf of the broadcast industry.
In response
to requests from our radio members, NAB recently released three radio spots encouraging listeners to prepare for the transition
to digital television (DTV). The FCC has also made radio spots available for stations
featuring Chairman Kevin Martin and Commissioner Michael Copps.
Also on
the television front, NAB filed comments on June 4 asking the FCC to ensure satellite carriers
provide both standard definition and high definition signals of local broadcast
stations. NAB's main concern is to protect consumer interests and be sure that
subscribers to satellite have access to local broadcasts. Providing both standards
will ensure that satellite customers have adequate access to all local programming.
On June 9, the broadcasting community came together to honor radio and television
stations who serve their communities in extraordinary ways at the 10th annual
Celebration of Service to America awards. More than 700 guests joined the NAB
Education Foundation, Federal Communications Commissioners Deborah Taylor Tate,
Robert McDowell, Michael Copps and Jonathan Adelstein and 17 members of Congress
to pay tribute to broadcasters, Country Cares for St. Jude Kids and entertainment industry icon Quincy Jones.
This year's event was yet another testament to broadcaster's dedication to serving
their local communities. Throughout the evening we heard incredible and inspiring
stories about how local broadcasters are fulfilling the needs of their communities.
Clearly, broadcasters are phenomenal public servants and their stories demonstrate
why the FCC's proposed localism regulations are unnecessary.
In early June,
NAB filed reply comments in the localism proceeding before the FCC, asking
the Commission not to impose burdensome localism regulations. We continue to stress
that broadcasters, faced with increasing competition, must provide quality local
programming to remain relevant with their viewers and listeners. New regulations
are unnecessary and contrary to the public interest. We will continue to make
our case to the FCC and encourage more members of Congress to write letters to
the Commission expressing concerns and objections to the localism regulations.
To date, 161 members and the U.S. Chamber of Commerce have written to FCC Chairman Kevin Martin expressing concern.
NAB continues to advocate for broadcasters in the technology arena, as well
as legislative and regulatory. A new report, commissioned by the NAB technology advocacy program
NAB FASTROAD (Flexible Advanced Services for Television and Radio On All Devices),
outlines the potential benefits that could result from an increase in the penetration
of FM radio receivers in cell phone handsets. The study concludes that cell phone
service providers, radio broadcasters and handset manufacturers all stand to benefit
from the expansion of FM-capable cell phones, a platform that could reach 257
million American subscribers. We're confident that implementation of a new FM-radio
feature would result in rapid penetration, benefiting not only the radio business
and American consumers, but the cell phone, electronics manufacturing and music industries as well.
As many of you are aware, one of my goals is to increase the effectiveness of
our grassroots activism, encouraging action by broadcasters at all levels and
increased coordination with state broadcaster associations. Though I am limited
in my travel because so much is going on in Washington, D.C., I have been able
to interact with broadcasters in New Jersey, New York, Wyoming and Illinois. In
fact, senior members of the NAB staff have attended 10 state association meetings
this month, providing our broadcasters with updates on the issues in Washington
and what they can do to help us be successful.
This past month the NAB
Board of Directors met in Washington, D.C., for our annual summer board meeting.
We discussed the issues mentioned above at length and reviewed our successes and
challenges as we are always striving to improve our advocacy efforts.
We
also held board elections and I am pleased to announce our new executive committee:
- Joint Board Chair Jack Sander, senior advisor, Belo Corp.
- Immediate
Past Chair Bruce Reese, president and CEO, Bonneville International Corp.
- Radio Board Chair Steve Newberry, president and CEO, Commonwealth Broadcasting Corp.
- Radio Board First Vice Chair Charles Warfield, president and COO, ICBC Broadcast Holdings, Inc.
- Radio Board Second Vice Chair Caroline Beasley, executive vice president and CFO, Beasley Broadcast Group
- Television Board Chair Jim Yager, CEO, Barrington Broadcast Group, Inc.
- Television Board First Vice Chair Lynn Beall, executive vice president, Gannett Broadcasting
- Television Board Second Vice Chair Paul Karpowicz, president, Meredith Corporation
- Network Representative John Eck, president, NBC TV Network and Media Works
We have an exciting year ahead of us and I thank these board members for their excellence and dedication.
Finally, I would like to close this month's update by taking a moment to reflect
on the passing of Tim Russert, one of the most trusted and credible journalists
in the history of broadcast news. We were so honored to have recognized Tim Russert and "Meet the Press" with an NAB Broadcasting
Hall of Fame award at the 2007 NAB Show. His contributions to journalism greatly
influenced the course of how politics is covered today. The broadcast community
has lost a reporter who epitomized excellence, and we mourn NBC and the Russert
family's loss. Our Sunday mornings will never be the same. Of course, our thoughts
and prayers are with the Russert family.
If you have any thoughts, questions
or feedback on these or other issues, I would appreciate hearing from you by email or phone: (202) 429-5449.
Best wishes.
David
