Major Broadcasters Hit With $12M Payola Fine

Gr8Apes writes with a just-breaking AP story reporting that the FCC is wrapping up a settlement in which 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 finish line is near after a 3-year investigation. An indie promoter is quoted: "It's absolutely the most historic agreement that the independent community has had with radio. Without a doubt, nothing else comes close."

Re:Just the broadcasters?

[Otter]

This is the FCC, not the police. They don't have any authority over the labels.

Yes, they do

[overshoot]

I thought that radio stations paid the record companies a license fee in order to broadcast their music? Can somebody in the industry (or with knowhow) clarify how this works?

No, they are only required to pay the composers. The artists get nothing, which is why so many of them write their own (mediocre at best) material rather than cover something better. That, and they use the records and airtime to get fans for concert gigs, which is where the real money is.

Now, "Internet radio" is something else. They have to pay per play not only to the composers but to the record labels, and they pay handsomely. Of course, the artists still don't get anything but at least we're being protected from the horrors of radio over the Internet.

Between 6am and midnight..

[unity]

The LA Times had some more details in their article yesterday:
http://www.latimes.com/business/la-ex-payola5mar06 ,1,2865175.story [latimes.com]

The relevant part:
"In a separate agreement, the radio companies have agreed to set aside 8,400 half-hour segments of free airtime over the next three years for local and independent artists. The segments would have to air between 6 a.m. and midnight."

Re:do existing local band programs count?

[PCM2]

Just because an indie label has a distribution deal with someone like sony/BMG doesn't mean that they are no longer indie...it works the same way in the indie film world.

Tell that to the folks that run 924 Gilman Street. [wikipedia.org] You got major label distribution, you don't play Gilman. It's a widely disputed policy, but it does make a certain sort of sense, to wit: By sticking to this policy, corporate interests do not get to infiltrate independent/alternative venues with "submarine" artists who will later be reared up to full major label status. Major labels and distributors aren't owed access to any venue or channel. They have the money to put their bands up at the standard pay-for-play venues, so let them do that, and not crowd out the true local scene from a $5-per-show venue like Gilman.

And BTW, I think you seriously overestimate the both the independence and the worth of a station like Live 105, which is owned by CBS Media. That station is pretty much the definition of corporate radio rock in the Bay Area right now.

Re:What about Air America?

[IthnkImParanoid]

From wikipedia:

Under United States law, 47 U.S.C. 317, a radio station always has had the ability to play a specific song in exchange for money; however, this must be disclosed on the air as being sponsored airtime, and that play of the song should not be reported as a "spin". Some radio stations report spins of the newest and most popular songs to industry publications, which are then published. [...]On influential stations (and particularly on television) payola can become so commonplace that it becomes difficult for artists to get their records/videos played without offering some sort of payment.

There you go. My opinion: if radio stations were allowed to accept money for non-advertising plays of songs, only people who could pay would ever be broadcast, which is an abuse of a government granted monopoly.

Re:What I want to know

[Goalie_Ca]

Time to make a plug for the best independant music radio station in the world. They already have 1 long running podcast.. over 70,000 downloads per week and they just started up 2 more. Best yet it comes in OGG format too :D.

CBC radio 3 [radio3.cbc.ca] and the french canadian station with its own podcast (today its all arcade fire!) BAP.fm [bandeapart.fm]

Informative?? LOL!

[Anonymous Coward]

LOL, what dumbass modded that informative?

Daylight saving time [wikipedia.org] begins on that night in much of the US and Canada. Some other parts of the world have also probably adopted the new start date of March 11.

Summer still begins on June 21 in the northern hemisphere. Sheesh. March 11 isn't even Spring yet.

Quick, mod me funny!