
Is the Media Landscape Shifting?
By: Bob Powers, Vice President of Government Relations
In the last few weeks we have seen a new, scholarly, and highly professional FCC begin to take shape, as directed by FCC Chairman Julius Genachowski, who has begun to tackle serious new communications issues, creating a backbone of new trends to come. Everything is on the table. Rules of the web, broadband deployment, spectrum issues, LPFM, perhaps localism, and anything else you might think to include. Washington insiders consider Genachowski an earnest student of technology - one who has surrounded himself with superior talent, a leader not intimidated by his staff, but freely calling upon their expertise when in settings with others. Many of these talented staffers have taken serious pay cuts simply to join Genachowski at the FCC. That, say insiders, speaks volumes of the type of leader that he is. Early on, he and his staff also seem very willing to hear from folks in all aspects of industry. We are told that our new FCC Chairman is also very pro-business. Time will tell where Mr. Genachowski stands. Does he have a hefty liberal agenda that will affect content, or will he remain focused on regulation that will truly help to promote increased communications ability for all? The latter is a tough job for anyone. NRB President & CEO Dr. Frank Wright, Senior Vice President of Communications & General Counsel Craig Parshall, and I met with Chairman Genechowski last month.
He seemed truly engaged on our issues as he conversed with Dr. Wright, earnestly seeking our input. That can be rare in this town. Localism and Equal Employment Opportunity (EE0) rules may come up again at the FCC, and when they do, NRB will ensure that your needs are clearly presented before the Commission. It is not an overstatement to say that in the coming days, new broadband initiatives will affect all sectors of communication. As ordered by Congress, the FCC must report on its broadband proposals by Febuary 17, 2010. Just recently the FCC posted a report by The Advanced Communications Law and Policy Institute at New York Law School on its homepage (www.fcc.gov). The 150-page document, titled Barriers to Broadband Adoption, will be used by the FCC to build its broadband plan. More to come in the next few weeks. For questions, please email bpowers@nrb.org.
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Executive Summary Frank Wright, Ph.D., President/CEO November 20, 2009
Earlier this week I had the opportunity to attend a high-level meeting regarding sound recording performance royalties, also called the “performance tax.” On one side sat a large and impressive array of capable and articulate music industry representatives, and on the other side sat a small complement of local AM/FM radio broadcasters.
Rep. John Conyers, Chairman of the House Judiciary Committee, requested this meeting because he wants to move H.R. 848, the Performance Rights Act, to the House Floor for a vote. Two years ago this legislation, which creates a new royalty on radio every time they play sound recordings, seemed destined to move quickly through Congress. But after a dedicated coalition rose in opposition, of which NRB has been an integral part, the legislative train slowed to a crawl. While H.R. 848 did make it out of the House Judiciary Committee, it also faced a worthy opponent in H.Con.Res. 49, the Supporting Radio Freedom Act, introduced by Rep. Gene Green (D-TX). This resolution states categorical opposition to any type of sound recording performance royalty, and since it has 253 co-sponsors from both sides of the political aisle, its mere existence has stood as a substantial roadblock to the Performance Rights Act. In fact, it has stalled H.R. 848 in the legislative never-land between a committee vote and actually getting placed on the Floor Calendar for a Floor vote.
Realizing that H.R. 848 is essentially dead, its Congressional promoters have recently turned to the only other avenue at their disposal: attempting
to get the two sides of this issue to “negotiate a settlement” even though there is no Congressional mandate for a new performance royalty. Laying aside the irony of Members of Congress trying to circumvent the legislative process, I sent a letter to Rep. Darrell Issa (R-CA) yesterday because in this week’s meeting he asked a very salient question: “Will the broadcasters modify their opposition to H.R. 848?” In my response to his important question, I explained, in very concrete terms, why NRB considers the Performance Rights Act to be a dangerous piece of legislation that would devastate radio.
First, I told Rep. Issa that H.R. 848 is based upon a fundamentally flawed premise. At its core, the Performance Rights Act assumes that all the value in the radio airplay of music flows to radio broadcasters – a notion that is disproved by both reason and practice. Advertisers, sponsors, and program syndicators pay for placement on radio for one reason: they receive substantive and significant benefits from over-the-air carriage. Yet H.R. 848 conceptually and functionally ignores the demonstrable value of this radio airtime.
Second, I explained that the Performance Rights Act maintains a polite fiction. It addresses the concept of a performance royalty as a stand-alone issue, while ignoring the multiplicity of other royalty regimes under which broadcasters already labor. This does a grave disservice to broadcasters. According to a recent report prepared by the NRB Music License Committee (NRBMLC), the average NRB radio member will pay “roughly double” in music licensing fees alone in the 2008-2012 period. And that increase builds upon significant increases in years prior. Furthermore, any royalty requirements would impose direct and indirect reporting and record-keeping compliance costs on broadcasters, which makes the total costs of operating under the existing royalty regimes far greater.
Finally, I expressed that H.R. 848 falsely assumes that broadcasters can somehow add to their cost structure in order to absorb all the additional costs of a sound recording royalty. Yet nothing could be further from the truth for Christian radio. Like all over-the-air broadcasters, our members do not charge listeners and cannot therefore pass rising costs on to “end users.” Sixty-four percent of NRB’s members are operating non-commercial stations, and they must compete for listeners in the radio marketplace, as well as identify and serve individuals in the donor marketplace. We already know of several Christian radio stations that have gone silent this year due to financial hardship, and I wanted Rep. Issa to know that adding to the existing financial burdens of all terrestrial radio broadcasters would make operation untenable for many, many more. For all of these reasons, NRB will not support the Performance Rights Act in any form.
Simply put, H.R. 848 paints a very bleak picture for Christian radio. We are appreciative of those courageous Members of Congress who have, to this point, supported the Radio Freedom Act, thus slowing the progress of H.R. 848. However, we will take nothing for granted in this legislative debate. The music industry maintains an expensive cadre of lobbyists to work this issue, and they are determined to get the Performance Rights Act passed. On behalf of our members, NRB will remain vigilant and engaged.
The President's Column was prepared with the valuable research and writing assistance of Laurel A. MacLeod.
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Finishing the Race
John Stephen Akhwari is an Olympic legend. In the 1960s he was an elite middle and long distance runner.
He represented his native Tanzania in competitions all across Africa and was the favorite to win the Marathon (26 miles, 385 yards) at the 1968 Olympics in Mexico City.
Arriving in Mexico Akhwari was in peak physical condition. He was well-rested, he was ready and his expectations were very high.
The Olympic Marathon began in the afternoon of October 20, 1968. As Akhwari took his place for the start of the race, here was a disciplined runner with enormous talent and great determination. He would desperately need every one of those qualities before the race was through.
With the sharp report of the starter’s pistol, the runners began their long journey in the warm Mexican sun and John Steven Akhwari moved deftly to the front of the pack.
Four hours later, there were only a few thousand spectators still milling about in Olympic Stadium. In the cool of the lengthening dusk, the last of the exhausted marathon runners were receiving treatment at first aid stations. Some were being carried off in stretchers. The winner of the race, an Ethiopian, has crossed the finish line more than an hour before.
As the last of the spectators prepared to leave, they were startled by the sounds of police sirens approaching the stadium gate. As the gate opened, everyone was soon to realize what was happening. Into the stadium came a solitary figure. Here was the last man to finish the Olympic Marathon, and it was John Stephen Akhwari.
Earlier in the race Akhwari was severely injured in a collision and fall. Urged to quit and seek treatment, he refused. Bloodied and bandaged he continued on, with each step of his shuffling gait rewarding him with sharp pain.
Shaking and grimacing, he hobbled around the stadium track and finished the race. The remaining spectators rose and cheered him as though he had won. After completing his arduous journey, Akhwari limped slowly off the field without even acknowledging the continuing applause.
Later he was asked why he continued in spite of his injury and knowing that he had no hope of winning. John Stephen Akhwari replied: “My country did not send me 7,000 miles to start the race; they sent me 7,000 miles to finish it.”
* * * * *
The writer of Hebrews uses the metaphor of a race to describe our journey as Christians in this world (Hebrews Chapter 12). And the race in view there is certainly a marathon – a life-long exertion of faith.
Among the many nuggets impounded within this metaphor, five should command our regular attention. The first is the directive to run. We often refer to our faith journey as our Christian “walk.” But here the exhortation is to run. Like any physical race, living out our faith requires great effort. It requires a spiritual striving. It requires discipline, exertion and determination. It isn’t always easy, but we must run nonetheless!
Second, we find great comfort in the writer’s description that the race is “marked out for us.” God has a plan for our lives. To discover it requires us to run the course before us today. We so often suffer from a restless search for God’s future will for us. With that focus we often ignore and neglect the very thing before us now. Run the race marked out for you!
Third is the admonition to persist. We are told to run the race “with perseverance.” This is the essence of marathon running. It is also the heart of the Christian life. It is for us to press on, to continue to serve, to keep the faith!
Fourth, we must maintain proper perspective. Here the writer is more direct: “Fix your eyes on Jesus.” Remember why you are running the race and remember who it is that enables you to succeed. Consider Him so that you will not grow weary and lose heart!
Last, note the writer’s emphasis on how many have run the race before us. He refers to them as a “great cloud of witnesses.” These witnesses are not just observers. These witnesses have walked where we have walked; they have run the same race that we are running. Not only that, they have finished the course!
All of which reminds me of the heritage we have in NRB. We walk in the footsteps of those who have gone before us. Not only do we walk in their footsteps, it is safe to say that we could not even do the work we do today had not these faithful men and women preceded us.
Rather than wining the Olympic Marathon, John Stephen Akhwari finished bloodied, bandaged and in last place – but he finished. Where are you in your journey of faith and service? Hopefully not bloodied and bandaged, but if so, take heart! God has called you to finish the race and will welcome you Himself with the everlasting arms of the Savior.
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