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Radio Distortion Bulletin #16

16 July 2009

A case of fuzzy math... According to Atlantic Broadcasting CEO Brett Denafo:

"A lot of these local stations in all markets all over the country will probably end up going dark, it would kill them, something like for us here at Atlantic Broadcasting, you're talking about $300,000 a year in a tax that would devastate Atlantic Broadcasting." NBC40

THE FACTS: Must be the new math...Atlantic Broadcasting's three music stations make less than $1.25 million. The Performance Rights Act has specific accommodations for these smaller stations. By law, Mr. Denafo's three music stations would only have to pay a maximum of $5,000 each per year - $15,000 total for all the music they can play - a far cry from the $300,000 he seemingly pulled out of thin air. Stations just like Atlantic Broadcasting's are covered by the PRA's accommodations:

  • Stations with revenue less than $100,000 per year pay only $500 per year
  • Stations with revenue between $100,000 and $500,000 / year pay only $2500 per year
  • Stations with revenue between $500,000 and $1.25 million per year pay only $5000 per year
  • Noncommercial stations with gross receipts less than $100,000 / year pay only $500 (other noncoms pay only $1000)

These small but fair payments for all the music that stations can play won't -kill‖ local radio stations, as Big Radio claims. The Performance Rights Act will simply compensate performers for their hard work.

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