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Radio One Owner Cathy Hughes on Why She's Against Paying Artists for Playing Their Music

Cathy Hughes

The Performance Rights Act has radio stations and some music artists pitted against each other. Now that Congress is involved, they will try to decide whether or not radio stations should be forced to pay artists for having their songs play over the FM and AM dials. It's an issue that has Cathy Hughes, founder and chairperson of Radio One, Inc., riled up. Hughes is one of the 240 sponsors of the Free Local Radio Act, a counter bill that would prevent the Performance Rights Act from getting a pass through the Senate. She believes imposing this "tax" on radio stations will be the death of Black radio. Currently down 400 workers, Hughes contends that she would rather hire her employees back then to have to pay royalties to artists like Beyoncé and Jay-Z. She tells ESSENCE.com why she believes the Performance Rights Act is unfair, the story behind who would really benefit from the passing of this Act, and why she's considering legal action against the NAACP.

ESSENCE.COM: Why are you so against the Performance Rights Act?
CATHY HUGHES:
It won't put Radio One out of business but we are fighting this for the brothers and sisters who aren't large enough to fight for themselves. This Act would immediately put a third of Black radio stations out of business and severely affect my subsidized formats like my talk radio and gospel stations. Neither one of them have caught on with advertisers but are popular with listeners. In some markets, my FM gospel stations have been number one, but couldn't translate it into advertising dollars and so we've had to cut back because they're not at a point where they can fully sustain themselves. Based on our present royalty payments, we're looking at paying about $1 million a month. My corporate headquarters works a four-day week now because we can't afford to be open on the fifth day. The number one category for Black radio is automotive and we know what's going on there. If I had an extra million dollars a month, I would hire my employees back. We have more Black folks working collectively in our company than the radio industry has in total. So believe me, it would drastically change the way we do business.

ESSENCE.COM: You've said that you consider yourself a little fish in a big pond. Why is that?
HUGHES:
There are a total of 209 radio stations owned by African-Americans. I own 52 of them. Clear Channel owns 1,100 by themselves and there are 11,000 plus stations in total. Even though I'm the largest Black owned, I'm the largest amongst a pool of little fish. I am not a big boy. We are miniscule compared to Clear Channel and this is just the worst time in our country's history to impose a tax on the radio industry. Congresswoman Sheila Jackson Lee told our CEO last week, "I don't believe this will put you out of business." Sheila Jackson Lee has never had to cover a payroll with over 1,000 people or operated a radio station. We're a public corporation. This isn't opinion. She can look at our books, instead of commenting on something she knows nothing about.

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RT @essenceonline: Radio One Owner Cathy Hughes on Why She's Against Paying Artists for Playing Their Music Radio One Owner Cathy Hughes on Why She's Against Paying Artists for Playing Their Music @essenceonline
Tell her son to withdrawal that 10 million dollar bonus and they could afford it.
Posted at 8/01/2009 1:06 AM by Ari
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In a phrase Ms Hughes, I hope your empire does crumble.
Posted at 7/31/2009 3:57 PM by Mike Flagg
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Ms Hughes crying poormouth in the magazine is truly disgusting. Her quote, "There are a total of 209 radio stations owned by African-Americans. I own 52 of them. Clear Channel owns 1,100 by themselves and there are 11,000 plus stations in total." I'm going to go out on a limb here and say that math is not her strong suit. Perhaps Congressman Conyers should look into busting up monopolies when he's done with the Performance Rights Act. Radio monopolies do not serve the public interest anymore than television and newspaper monopolies do. They are there to serve the public interest on the public airwaves.
Posted at 7/31/2009 3:56 PM by Mike Flagg
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Ms. Hughes fails to mention the $10mil bonus she paid her son last year. Perhaps she should have taken that money and used it to provide another day's work for her employees. $10mil??!!
Posted at 7/30/2009 3:07 PM by JG
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Ms Hughes is sorely mistaken when relating that this act would put one third of minority owned radio stations out of business. It would not. These stations are able to pay the $500 to $5,000 anually per the Performance Rights Act. Ms Hughes would still be able to give her son, the CEO of Radio One, his annual Ten Million Dollar bonus as well as whatever millions she rakes in. She says, "If I had an extra million dollars a month, I would hire my employees back." Now Ms Hughes could have the one million per month she is clammoring for if she DIDN'T give her son the 10 Million Dollar Bonus this year. And Ms Hughes, stop crying poor mouth when your corporate behemoth, Radio One, pulled in 316 Million last year. It is disingenuous and insults the employees you let go in order to make your son the Ten Million Dollar Man.
Posted at 7/29/2009 10:50 PM by Mike Flagg
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