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Radio Distortion Bulletin #22

22 July 2009

From the Big Radio Archive, filed under H for "Huh?":

According to Ernesto Garcia, the program coordinator for local radio station KRGT FM and others, "If I were at a station in Tucumcari, N.M., then I would pay $500 to $1000, or whatever the fee is, a month to record companies... If I were at a larger station in say Las Vegas, Nev., or Los Angeles, Calif., or even Albuquerque, N.M., they would expect us to pay a certain fee a year, about 20 percent of our profits, just for playing Eminem or George Strait." ... Garcia said that commercial stations would be limited based on their location. (Roundupnews.com)

THE FACTS: Now they're just wingin' it... Under the PRA, payments by commercial stations have nothing to do with their location, as Mr. Garcia states, but are based on their annual revenue. For all the music they can play, smaller stations would pay no more than $5,000 a year, not per month (and many would pay as little as $500 a year). The payments are distributed not just to record companies, but to any other recording copyright owner, as well as all performers on the recordings. And it's impossible to guess where Mr. Garcia's "20 percent of profits" claim comes from since the legislation does not set a rate for larger stations (those with revenue above $1.25 million a year), but instead leaves it to a Copyright Royalty Board, which will take many factors into account (including any promotional value provided by broadcasts). From what bizarro universe does Big Radio pull their facts?

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