Broadcasters to pay $12.5 mil in anti-pay-for-play agreement

[Teddy Roosevelt]

John Dunbar
Associated Press
Mar. 6, 2007 12:00 AM

WASHINGTON - Radio listeners weary of hearing the same songs over and over may have something to cheer about: Broadcasters have tentatively agreed to anti-payola settlements that could shake up music playlists at some of the nation's largest radio chains.

Four major broadcast companies would pay the government $12.5 million and provide 8,400 half-hour segments of free airtime for independent record labels and local artists, the Associated Press has learned.

The deal is aimed at curbing payola, generally defined as radio stations accepting cash or other consideration from record companies in exchange for airplay. The practice has been around as long as the radio industry and was made illegal after scandals in the 1950s.

Two Federal Communications Commission officials, who spoke on condition of anonymity because final language has not been approved by the full commission, said the monetary settlement is part of a consent decree between the FCC and Clear Channel Communications Inc., CBS Radio, Entercom Communications Corp. and Citadel Broadcasting Corp.

The agreement was reached at the same time as a deal designed to lead to more airtime for smaller record companies and their lesser-known artists as well as local musicians.

The American Association of Independent Music, a group of independent record labels, has received a commitment from the same four broadcasters for the free airtime, the officials said.

In addition to airplay, the broadcasters and the independent labels have negotiated a set of "rules of engagement" that will guide how record company representatives and radio programmers interact.

The free airtime would be granted to companies not owned or controlled by the nation's four dominant music labels - Sony BMG Music Entertainment, Warner Music Group, Universal Music Group and EMI Group.

Payola, or "pay-for-play," can be difficult to track.

In recent years, independent record promoters have acted as middlemen to deliver payments to radio stations in exchange for airplay. Other forms of inducement include lavish prizes meant for listeners that wind up going to station employees, promises by record companies of concerts by well-known artists in exchange for airplay, and payments for promotional expenses and station equipment.

Under the FCC consent decree, broadcasters would agree to closer scrutiny in their dealings with record companies, including limits on gifts, a promise to keep a database of all items of value supplied by those companies, the employment of independent compliance officers and a new "payola hotline" for employees to report infractions.

Broadcasters would admit to no wrongdoing under the three-year settlement, which would end an FCC investigation into payola practices.

http://www.azcentral.com/arizonarepublic/business/articles/0306biz-payola0306.html

[Primo]

that could be huge

[Jakubs]

That would be great.

[Tanjential]

hm, I wonder if this will/can actually be enforced.

Dre better rap on Bishop Lamont's first single....

-T

[jeromechickenbone]

This is great news.  Let's see if it happens.  Payola is a HUGE problem.