The NAB joins internet broadcasters in fight against higher royalties

In Kurt Hanson's RAIN blog, he explains that the National Association of Broadcasters are frustrated with how Sound Exchange is handling the royalty issue as well. The NAB are a powerful ally to have in this fight and I am feeling pretty good about our chances to continue on. Kurt's website is found here http://www.kurthanson.com .

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Broadcasters who stream online won't take the new webcast royalty rates lying down, says the NAB in their latest and most forceful statement on the issue which guarantees "unequivocal support" for the Internet Radio Equality Act.

According to a press release, the NAB extended an offer to SoundExchange on June 6 that sought to negotiate a settlement with the record industry group for the NAB's member stations, the terms of which have not been disclosed. According to the NAB, SoundExchange has not responded to that offer.

"We are disappointed by SoundExchange's continued reluctance to respond to the good-faith, reasonable offer put forth by NAB nearly two months ago," said NAB Executive Vice President Dennis Wharton. "NAB will now turn our attention to aggressively advocating in support of Rep. Inslee's legislation to ensure that local radio broadcasters who stream content online are treated fairly."

Since the introduction of the IREA, many webcasters and radio industry figures have openly urged the NAB to take a strong stance in support of the bill. Beginning with a statement on April 30 in which the group pledged to "work with Congress to craft a solution", the NAB has continued to ratchet up their language in public support for the legislation [previous RAIN coverage here].

Today's announcement is joined by a statement from NAB chief David Rehr in response to a question regarding performance royalty for broadcasters posed to President Bush during a recent appearance in Nashville [previous RAIN coverage here].

In a letter to President Bush, Rehr argued that the levying of a performance royalty on AM/FM radio would "upend the long-standing mutually beneficial business relationship that exists today between record labels, recording artists and broadcasters." He also urged the President to speak out against a performance royalty for broadcasters should the question be posed to him again in the future.