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News
The MMTC: One-third of minority owned stations could go bankrupt if royalty passes
It’s a sobering assessment by the The Minority Media and Telecommunications Council, which asserts that Congress' proposed performance royalty “would throw at least a third of minority owned stations over the cliff into bankruptcy.” The Council says minority-owned stations would be hit the hardest financially by any new royalty payment, partly because they traditionally bring in less revenue. Furthermore, it argues that “If the bill passes, small stations that get large would have a license to lose money,” and the MMTC says you can’t have lower royalty fee rates solely because a station is minority-owned. The MMTC also cites the position of the National Association of Media Brokers, that any new royalties “will be crippling to the broadcast industry in general, and particularly devastating to minority broadcasters.” Read the MMTC release here.
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