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Radio Distortion Bulletin #5

5 June 2009

From the May 12, 2009, open letter from Radio One, Inc. Chairperson Cathy Hughes:

"In the midst of this economic depression, black radio stations simply do not have that financial ability."

THE FACTS: Cathy Hughes conveniently ignores the economic damage done to the thousands of minority artists, who in these tough economic times need the income they should be receiving from the broadcasters' use of their music.

The Performance Rights Act balances the interests of all parties to ensure that the performers and broadcasters can weather the recession together. The bill provides broadcasters with a 3 year delay (1 year for stations with revenue in excess of $5 million) before they have to begin paying.

Meanwhile, for all of Cathy Hughes' talk of economic hardship, Radio One promotes itself as "the urban radio specialist...one of the fastest growing radio companies in the country, with 53 stations in 16 cities." http://www.radio-one.com/about/. While crying poor, according to SEC filings Radio One is paying CEO (Cathy Hughes' son) Alfred Liggins III $7.26 million + $2.95 million in deferred compensation (Business Week) - roughly equal to the amount paid to songwriters and music publishers. Surely they can afford to pay the performers for the music that generates Radio One's income!

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