The Performance Tax could be the biggest problem facing radio in the past 25 years. Due to mismanagement by the recording industry, there is federal legislation that has been introduced in Congress to force radio stations to pay a “Performance Royalty” for the music they air. This royalty would be in addition to the fees radio stations pay to the composers of recorded music (ASCAP/BMI /SESAC) For over 80 years, there has been a mutually beneficial relationship between “radio airplay” and the artist’s “free promotion” The current business model of the record labels has not worked well for them and they now want to “bite the hand that has fed them” While the total amount of money they hope to extract from the radio stations is not been specifically established, we must recognize that this will cripple many radio stations.

The OAB has worked hard to get the support from all five (5) of our United States Representatives. All five have co-sponsored HR 49 which opposes the implementation of a performance royalty on radio stations that play music. We are proud of this bi-partisan support and want to thank Representatives Boren, Cole, Fallin, Lucas and Sullivan for recognizing the unfair position this legislation would impose on radio. Please make sure you pass along your thanks to these elected officials.

Oklahoma Sales Tax on Advertising

Early this year HB 1843 was introduced into the Oklahoma House to propose a sales tax on advertising. The OAB has opposed this tax in the past and continues to oppose its implementation. Not only would it be bad for the economic growth of our state, it would be an almost impossible tax to enforce. The OAB has employed the lobbying services of Jerrod Shouse to help oppose this tax and we are pleased to report that this tax will not become law in 2009. We will monitor the progress of any future proposed legislation in regards to an advertising sales tax.

• Graeme Newell and John Larson for Television News
• Paul Weyland, Pat Bryson and Doc Holiday for Sales
• Jacobs Media for Digital Media
• SBE Conference for Engineering
• Joe Castiglione for Sports Marketing
• Tim Daniel for Management Training

The keynote speaker at the Thursday Luncheon will be Jim Huntzinger, Chief Economist for Bank of Oklahoma.

Any OAB member may attend any day sessions for a $10.00 registration fee. Lunches will be $15.00.

The Hall of Fame Dinner on Thursday, April 16, will induct Sportscaster John Brooks; Tulsa Radio Icon Jan Dean; and Veteran Tulsa News Anchor Carole Lambert from KTUL. The reception starts at 6:00pm with dinner at 7:00pm. Tickets this year are reduced to $40.00 per person.

Friday will be Student Day at the convention with over 200 Oklahoma College students joining the OAB members in sessions and events. The OAB will award six $2000 scholarships to award-winning students at the noon luncheon.

The OAB Awards Ceremony is Friday, April 17, with a reception at 6:00pm and dinner at 7:00pm. Tickets are also $40.00.

In addition to the Oklahoma Army National Guard, our sponsors include: Griffin Communications; OG & E; American Media Services; AT & T; Oklahoma Natural Gas; SESAC; ABC Radio Networks; OERB; Chickasaw Nation; Bank of Oklahoma; Cherokee Nation; Media Services Group; and ASCAP.    

We encourage you to make your hotel reservations now. The OAB rate of $139 expires March 16th. Make reservations online at the Renaissance or call 800-264-0165.

See you in Tulsa!

This could be the single biggest issue facing broadcasters in 2009. Passage of this ill-conceived tax on radio broadcasters would be devastating to radio operators and potentially to television stations. The OAB has both sets of attorneys working on our behalf. We expect Congressman Berman (D-CA) to introduce his legislation the week of 2/2/09. Our goal is to have enough co-sponsors for a resolution to defeat the bill. Our battle will not be as easy as it was with the 110th Congress, given the shift in political power. We do not expect to lose any support from any elected officials who co-signed our resolution last year. We shall see how the newer members of Congress react.

It appears the proposed legislation will (1) exempt the first $1,250,000 of gross billings for a radio stations, and (2) unfairly exempt other industries such as hotels, nightclubs, etc., that also play recorded music. Our contention is that radio has always provided a more than reciprocal value of promotion for recording artists, and that passage of this bill could force certain stations to either go dark or cease playing music.    

Proponents of the bill (primarily the Recording Labels) argue that their business model has been in decline and they need new revenue streams to offset their losses. We argue that their poor business practices should not allow them to “bite the hand that feeds them.” We need to make it very clear to anyone that will listen, that radio broadcasters continue to pay their rightful fees to the composers of all musical adaptations (ASCAP/BMI/SESAC).

We believe that in Oklahoma we have the support of Representatives Sullivan, Cole, Lucas and Fallin. We also believe we have the support of Senator Inhofe. Senator Coburn has “recused” himself from the debate and Congressman Boren is an unknown at this time.

DTV Transition

At his point the fluid nature of the “hard date” for transition has been very problematic. Broadcasters have in good faith performed above the standards asked for by the government and now to delay the date seems to be rewarding bad behavior. Individual stations will make their choice as to when to transition exclusively to digital. The OAB and NASBA have worked hard to make sure that any broadcaster who wants to transition on 2/17/09 can do so without penalty.

Oklahoma was one of very few states that conducted statewide “Soft DTV Tests”. We did three in Oklahoma City and Lawton, and five in Tulsa. In these tests we employed live operators who were members of the SBE. This coordinated effort was duly noted by the FCC and was in addition to the significant efforts that the individual stations employed on their own behalf. We need to thank the generous support of OETA who provided the phone banks and the numerous volunteers who donated their time.