MUSIC BIZ TO FEDS:
CHECK OUT RADIO PAYOLA
With tomorrow night’s ABC-TV 20/20 ready to put the spotlight back on independent promotion, the music industry has called for a federal investigation of "questionable promotion practices" by Clear Channel and other powerful radio station chains and for the FCC to enforce payola rules.
The letter, signed by a coalition of trade groups, including the RIAA, is expected to be released tomorrow. The document challenges the legality of standard independent promotion practices, and evokes the federal payola statute, which was first enacted 40 years ago to prohibit stations from accepting money for playing songs without disclosing the arrangement to listeners.
Some promoters have gotten around the anti-payola law by paying broadcasters annual fees not directly tied to airplay of specific songs, charging labels only when a song is added to the playlist. Since Congress deregulated the radio business in 1996, consolidation has dominated the radio landscape, with Clear Channel emerging as the dominant player, with more than 1,200 stations, 10% of the nation’s total.
Clear Channel and Radio One had alienated record labels by insisting they use designated independent promoters to pitch song to programmers at their respective chains.
Now, record companies and artist groups want the government to look into how this consolidation is affecting the community of listeners.
In a letter obtained by the L.A. Times, the coalition, including AFM, AFTRA and the Future of Music, said: "We are deeply concerned about payola… as well as the problems caused by consolidation. New rules must be written by the FCC to prohibit payments to radio stations from independent promoters unless such payments are made public."
The missive goes on to ask for the FCC to better police the nation’s broadcast congloms, which it claims "have failed to serve the public interest." It calls on Congress to prohibit payments to broadcast stations designed to influence airplay, closely examine vertical integration of ownership in broadcasting, concert promotion and entertainment venues. monitor the escalating power of Clear Channel and to provide a decent radio outlet for klezmer music.
