[BC] Uselessness of HD

[James B. Potter]

>I'm not sure how the composing and performance licensing agencies verify
income. But I don't believe they require supply of tax returns.  It's an
honesty based system which has worked for many years. However, there is a
clause in the agreement for audits should there ever be a question. ISR that
Ibiquity requires the tax returns and a broken out income statement showing
the HD-2 revenues. A whole different level of intrusion. MM

First -- the 1.7% of gross is the new settlement (at least with BMI)  with
the RLMC group representing the stations and musicians.  See
http://radiomagonline.com/currents/news/bmi_rmlc_settle_performance_fees_061
3/  

Excerpt from that article:  "A 1.7 percent-of-gross-revenue fee structure
(with simplified revenue reporting) for blanket/music format
license-reporting stations, less a standard deduction of 12 percent for
revenue derived from terrestrial/analog and HD Radio multicasting broadcasts
and a 25 percent standard deduction for revenue attributable to new media
uses"

This has been in litigation for years as a class-action suit. They decided
to charge on gross revenues with a minor offset called a 'standard
deduction.'  Since many stations are really squeezed for existence, I argue
for a fee based on something other than gross.  There may be little or no
net profit after expenses in today's business environment.  Private business
enterprises carefully guard their financials for all kinds of reasons, and
music licensing agencies are really over-reaching to request such
information.  

Know what the larger fear is? That Pandora is buying-up all the music
licenses from ASCAP, BMI, and SESAC -- just a rumor now -- so if they own
the songs we play, will we be paying royalties to Pandora also?  

Like Ole Blue Eyes once sang:  "Something's gotta give!"

Regards/J