| PAYOLA [message #81194] |
Tue, 06 March 2007 01:12  |
JM
Messages: 4
Registered: November 2005
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Junior Member |
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FCC, RADIO INDUSTRY COME TO TERMS ON PAYOLA
Four Majors Agree to Pay Government Total of $12.5 Million and Provide Free
Airtime for Indies
March 5, 2007
It’s over, and the winner is…the indie labels.
Radio giants Clear Channel, CBS Radio, Entercom and Citadel have tentatively
settled their payola problem with the FCC.
The four have agreed to pay the government $12.5 million and, in a separate
pact apart from the FCC decree, provide 8,400 half-hour segments of free
airtime for independent record labels and local artists.
The free airtime would be given to companies not owned or controlled by Sony
BMG, Warner Music Group, Universal Music Group or EMI. Who came up with this
plan, Tony Brummel?
The four radio firms will not be admitting any wrongdoing under the three-year
settlement.
A separate agreement with the A2IM (American Association of Independent Music)
includes a set of “rules of engagement” that will guide how label reps and
radio programmers interact. Broadcasters will more closely monitor their
dealings with labels, including setting limits on gifts, promising to keep
track of all items of value supplied by those companies, hiring independent
compliance officers to make sure the rules are followed, and establishing
a “payola hot line” for employees to report when rules are broken. Anybody
got that number?
“It’s absolutely the most historic agreement that the independent community
has had with radio,” said Thirsty Ear Recordings President Peter Gordon,
who has been leading the negotiations for A2IM. “Without a doubt, nothing
else comes close.”
FCC Commissioner Jonathan Adelstein commented: “I love music, and I want
radio to sound fresh, dynamic and real. But payola gets in the way of authenticity
because money drives the music, not its quality. Taking payola out of the
system will lead to more interesting programming. I especially look forward
to hearing Bayside on my local station.”
When asked for his take on the settlement, Brummel replied: “Victory is the
top independent rock label, according to marketshare. Unfortunately, if you
looked at the rock radio charts, Victory would be nonexistent. This is not
for a lack of trying for airplay. Our artists have real, passionate fans
that could only help these stations’ ratings if they embraced what the people
on the street are actually listening to.”
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