IS THERE PAYOLA IN THE RADIO BUSINESS?

[ACcountryFan]

The Other Foot
The FCC sweeps Eliot Spitzer's payola findings under the rug

by Douglas Wolk
August 22nd, 2005 5:40 PM

...Payola, the music business likes to claim, is deplorable; it's just that everyone does it. And expensive gifts to radio programmers? That's about maintaining good relationships. Who doesn't like a good relationship? 

Read the rest at VILLAGE VOICE

It occurs to me that perhaps Clay refused to allow any payola for his music on the radio.  Not that he would necessarily have any say in it at the time Measure of a Man was released.  But it does sound like a practice in which he would not be eager to participate....  just something to consider.

======================================
Simply put: these radio people and legal eagles have an answer for everything. They justify their actions so convincingly that it's hard to tell when reality begins and the lies end. The part i quoted sums it all up. They justify payola by presenting it as "maintaining good relationship between radio and record labels?".

Pamela: That's a good starting point. I don't think Clay WANTS payola to be associated with his career whenever writers or historians write about his place his pop music. That word to me just makes careers seem illegitimate because of it's reputation with pay-for-play. I mean, Clay's out there selling CDs and concert tickets on the strength of his talents and his fan base...with no airplay to speak of. As always, Clay is doing quite well without radio...but airplay wouldn't hurt, either...but if this new payola is the thing that's keeping some OFF radio while others are on radio, i'm glad Clay seems to want no part of it.

[Pamela]

The Cloud Over the Grammys: Stars React to the New Investigation Into Paying for Play on the Radio
New York State Attorney General Conducted Two-Year Probe

Feb. 8, 2006 --  It's party time at the Grammy's, but there is a cloud of scandal hanging over the music industry in the form of the most comprehensive investigation into corporate payola in the industry's history.

Paying to play records on radio — payola — seems as old as the recording industry itself, but this time it's not low-level promoters under investigation; it's the record companies and the conglomerates that own thousands of the nation's radio stations.

ABC News interviewed those stars as a follow-up to Chief Investigative Correspondent Brian Ross' ABCNEWS.com exclusive.

Outside legendary music producer Clive Davis' annual pre-Grammy party, a number of major figures in the music business said they aren't surprised it's still happening.

"I heard about that. That's been going on a really, really long time. I think back in the '70s they used to pay people with hookers and cocaine, and now they're just doing it with straight-up money. So they can all go out and buy their own hookers and cocaine," said Taylor Hawkins, the drummer for the band Foo Fighters.

"Honestly, payola has existed since the beginning of the music business, so it's not like its some brand-new thing that never happened before," said singer Alicia Keys.

Music industry figures were reacting to the news that a two-year-long payola investigation by the New York attorney general had now turned to the nation's nine largest radio conglomerates.

New York Attorney General Eliot Spitzer said evidence he has gathered clearly shows some of the radio conglomerates have participated in the illegal practice of accepting payments from record companies and middlemen for guaranteed airplay for certain songs.

"The behavior has been unethical, improper, illegal and a sanction of some severity clearly should be imposed," Spitzer told Ross.

Spitzer and music industry officials told "Primetime" that millions of dollars in payments, gifts and trips are exchanged each year to get music stations to add songs to their weekly playlists.

Spitzer said record company documents obtained in the investigation of Sony BMG and Warner, both of which have settled with the attorney general, revealed payments for songs that became major hits, including Jennifer Lopez's "I'm Real" and John Mayer's "Daughters."

Other artists whose songs are named in the documents Spitzer has obtained include Jessica Simpson, Celine Dion, Maroon 5, Good Charlotte, Franz Ferdinand, Switchfoot, Michelle Branch and R.E.M.

Last night Simpson's father and manager told ABC News, "All I know is we worked really hard to get the record on and it was as honest as I could be. So whatever happened above us, you know I have no answer for."

Spitzer said much of the money went directly to corporate bottom lines, unlike payola scandals of previous decades when individual disc jockeys and program directors received the money.

"We have people in suits coming in with documents rather than cash payments under the table to a DJ," Spitzer said.

The nine radio conglomerates that have received subpoenas from the attorney general are Clear Channel, Infinity (now CBS Radio), Entercom, Emmis, Citadel, Cumulus, Cox, Pamal and ABC.

The nine companies together control several thousand radio stations across the country. In statements to ABC News, five of the companies said they are cooperating with the attorney general's investigation and take the matter seriously. The other companies did not respond to requests for comment.

©ABC Primetime

[ACcountryFan]

"Honestly, payola has existed since the beginning of the music business, so it's not like its some brand-new thing that never happened before," said singer Alicia Keys.

©ABC Primetime

===============
To me, this statement is a perfect example of an artist who benefits from payola. That's a good girl, Alicia...justify it by saying it's been going on since the beginning. Actually, i don't believe it's been going on since the beginning of the music business. I'm not naive but yet i'm not a crass cynic, either.

I happen to agree with the view that payola started with the creation of rock music and how the people associated in radio at the time wanted ROCK music to catch on and the only way to do that was latch onto a young listening audience and replace the older DJ's with young DJ's who played up this "new music" as if it were the greatest thing to come along. TONS of bad songs that "rocked" were played and although we may never have proof, it's safe to assume that payola was a big factor in the creation, promotion, and domination "rock music" had over traditional "pop music".

Thanks or no-thanks to payola, depending on your views, mainstream pop acts had to find a new home...ahhhh, the advent of Middle of the Road radio...re-named Easy Listening...and then re-named for the final time, Adult-Contemporary.

The bottom line is, instead of ridding radio of payola and other practices where radio gets large sums of money or gifts from record labels in exchange for airplay, everyone just shrugs their shoulders and says: "what can ya do??? this is radio circa 2006.".

[Pamela]

FCC Launches Payola Probes of 4 Radio Giants
 
Documents are sought from Clear Channel, CBS, Entercom and Citadel, sources say. The agency's step comes after settlement talks stall

April 20, 2006
By Charles Duhigg / Times Staff Writer

The Federal Communications Commission on Wednesday launched formal investigations into pay-for-play practices at four of the nation's largest radio corporations, the biggest federal inquiry into radio bribery since the congressional payola hearings of 1960.

Two FCC officials with direct knowledge of the matter confirmed that the agency had requested documents from Clear Channel Communications Inc., CBS Radio Inc., Entercom Communications Corp. and Citadel Broadcasting Corp. over allegations that radio programmers had received cash, checks, clothing and other gifts in exchange for playing certain songs without revealing the deals to listeners, a violation of federal rules.

The FCC requests, known formally as "letters of inquiry," are the first step in investigations that could result in sanctions ranging from financial penalties to the revocation of stations' licenses.

An FCC spokeswoman declined to comment. Representatives of the four radio companies could not be reached for comment.

In the past, radio executives at firms including Clear Channel, the nation's largest station owner, have said that company policies prohibit accepting gifts for airplay and that internal probes have not revealed widespread wrongdoing.

The four broadcasters have been negotiating with the FCC for weeks to forestall a federal inquiry by offering to discontinue certain practices and pay limited fines. But those talks stalled last month over the issue of how much the broadcasters should pay.

Clear Channel proposed a fine of about $1 million, according to people with knowledge of the negotiations. Some commissioners were pushing for as much as $10 million, those sources said.

"We were in the process of trying to reach settlements, but when talks were inconclusive, we decided we needed more information," said an FCC official who spoke on the condition of anonymity because the investigation was continuing. "We will continue to speak with the parties and to hold those who have violated commission rules accountable."

The FCC requires that radio listeners be informed anytime there is an exchange of items of value for airplay of specific songs.

The FCC's action comes amid New York Atty. Gen. Eliot Spitzer's pay-for-play probe, launched in 2004, which has alleged wrongdoing by both music and radio companies. In February, Spitzer sued Entercom, alleging that high-ranking executives had implemented scams to trade cash for airplay of songs by such artists as Avril Lavigne, Liz Phair and Jessica Simpson.

Entercom has denied the allegations.

The other three radio companies are also under investigation by Spitzer, who has shared his evidence with the FCC.

Radio programmers at stations around the country say that fear of regulatory scrutiny has scared them into airing fewer new songs. Instead, many stations are sticking to less diverse playlists.

Bryan Tramont, who served as chief of staff to former FCC Chairman Michael K. Powell and is now an attorney in private practice, said the inquiry appeared to be more than a fishing expedition.

"The FCC would only launch a formal investigation if they had information leading them to believe possible violations have occurred," he said.

Other FCC insiders said this new stage of investigation could put broadcasters more at risk of previously undiscovered evidence of wrongdoing being found. The investigation could give the FCC access to millions of previously unexamined documents. It could also expand to include stations and radio executives across the nation.

"Until now, we've been limited to the evidence Spitzer gave us, but a formal investigation will compel the radio companies to answer certain questions, which are usually pretty exhaustive," said another current FCC official familiar with the inquiry. "It will all be on the record now, and once we start demanding documents, we can keep on going until we're convinced we've found everything."

Spitzer has been critical of the FCC's negotiations with radio companies, saying that if the federal government allowed stations to settle it would undercut his efforts to force tougher sanctions and rules on the industry.

"Unfortunately the FCC, contrary to good public policy, has not pursued an investigation of the underlying facts," Spitzer said in April. His representative could not be reached for comment.

The last time the FCC took action on pay-for-play allegations was in 2000, when it fined two stations in Texas and Michigan $4,000 each for not disclosing payments received from A&M Records in exchange for playing songs by Bryan Adams.

But the investigation launched Wednesday was evidence of the FCC's vigilance, said federal officials.

"The chairman has always taken these allegations seriously," said one FCC official, referring to FCC Chairman Kevin J. Martin. "We're not worried about criticisms."

The FCC's new investigation is the largest federal radio bribery inquiry since Congress opened hearings on pay-for-play in 1960. Those inquiries resulted in the first federal "payola" laws and killed the career of famed disc jockey Alan Freed, who pleaded guilty to two counts of commercial bribery and was fined $300.

LA Times (registration required)

[ACcountryFan]

FCC Launches Payola Probes of 4 Radio Giants

....Two FCC officials with direct knowledge of the matter confirmed that the agency had requested documents from Clear Channel Communications Inc., CBS Radio Inc., Entercom Communications Corp. and Citadel Broadcasting Corp. over allegations that radio programmers had received cash, checks, clothing and other gifts in exchange for playing certain songs without revealing the deals to listeners, a violation of federal rules.

The FCC requests, known formally as "letters of inquiry," are the first step in investigations that could result in sanctions ranging from financial penalties to the revocation of stations' licenses.

An FCC spokeswoman declined to comment. Representatives of the four radio companies could not be reached for comment.

In the past, radio executives at firms including Clear Channel, the nation's largest station owner, have said that company policies prohibit accepting gifts for airplay and that internal probes have not revealed widespread wrongdoing.

The four broadcasters have been negotiating with the FCC for weeks to forestall a federal inquiry by offering to discontinue certain practices and pay limited fines. But those talks stalled last month over the issue of how much the broadcasters should pay....

LA Times (registration required)

[/quote]
-----------------------------------------------------------------------------------
Thanks for the on-going posts about this new version of payola going on at radio.

Here's a question: These broadcasting giants in question have already owned up to wrong-doing since there was a move to stall things and pay limited fines as i quoted from the post. I can't see why these broadcasters who were attempting to "discontinue certain practices and pay limited fines" in an effort to end an investigation can get away with that...if that doesn't show guilt right there, nothing does...and this can be applied to other smaller radio stations as well...it just takes time and money uncovering the skeletons.