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Music Media

Music Industry Seeks Payola Inquiry 298

An Anonymous Coward writes "The big media story of the day seems to be that the RIAA, artists, and others in the industry are complaining that there are monopolies (such as Clear Channel) forming in the radio broadcast industry. The group is stating that the practice of "independent promotion" is really a new form of payola and that it is hitting the artists' bottom line directly." Another submitter writes in with another story on the subject and the industry's Joint Statement on Current Issues in Radio.
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Music Industry Seeks Payola Inquiry

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  • Hmmmmm.... RIAA or Clear Channel? Sometimes there just isn't a white hat in sight.
    • RIAA or Clear Channel? Sometimes there just isn't a white hat in sight.


      Internet-based radio stations are going to help, as will I think the DMX stuff out now. Now, fans, not lawyers, will get to decide completely what is the listening interest. Internet radio has gotten mixed results, and I was sad to see Fat Free Radio [fatfreeradio.net] disappear because what I listen to isn't often found on the airwaves.

    • by morgajel ( 568462 )
      don't get your knickers in a bunch.

      think about it, have you actually LISTENED to a clear channel station? around here, they're usually the ones pumping out brittney and the rest of the rotten ilk. they're just a TRL that plays more than 50% of the song.

      let RIAA and clear channel pummel each other. if RIAA makes it easier for "independent stations" to be heard, good for them.

      I'm NOT a RIAA fan, but sometimes even the worst of people/groups can hit the nail on the head, even if they don't use the best methodology.

      fuck clear channel and fuck the RIAA.
      I hope the RIAA bankrupts clear channel and exposes themselves as frauds in the process.

      sincerely,
      -a musician.
      • of course, ClearChannel just bought 40 new Apple Xserve's, so as much as I hate them, I can never completely hate them
      • "You know, Mr. Roosevelt, if we let Hitler have his way in the East, eventually the Nazis and the Communists will kill each other, then we can have a free hand in Europe."

        "Good idear, Mr. Churchill. So I should delay that invasion of Europe until the war's almost over?"

        "Yes Mr. President."

        "And there's no chance the Russians will win and overrun Eastern Europe and set up Communist satellites for fifty years?"

        "No, Franklin."

        "Excellent, Winston."

        Something about learning, history, mistakes, doomed, etc. I don't remember the quote =)
  • The music industry opposes the "payola" that they willingly pay to get the music they want to be on the radio on the radio. Why don't they all just stop paying. Then the radio stations will need another method to decide what is played.
    • Re:I am Confused (Score:3, Insightful)

      by killmenow ( 184444 )
      No, see...they don't actually oppose payola. When there was more competition in the radio business, payola was cheaper because all the stations had to compete. Now that Clear Channel owns most of them, there's little competition, so payola costs more.

      What RIAA really opposes is MORE payola. Not payola in general.
      • Oke, I think I understand, it's just like buying CD's, isn't it?

        Good luck RIAA, we know your pain...
        The /. comunity is full of understanding, please raise the price of CD's a bit to fund the fight against this great injustice!
    • Re:I am Confused (Score:3, Insightful)

      by Saint Nobody ( 21391 )
      because all four companies would have to stop paying at once, otherwise whoever stopped first would be screwed. nobody wants to be the first out of the gate on this one out of fear of retaliation from clear channel. so they had their industry lobbying group start whining that their monopoly is being hurt by another monopoly in a different industry.
  • by cybrpnk2 ( 579066 ) on Friday May 24, 2002 @11:24AM (#3579289) Homepage
    A brief history of the original 1950s payola scandal is here [about.com]. Another interesting payola scandal that I don't think ever went anywhere is that Salon ran an article [salon.com] accusing the US government of payola for having Hollywood run anti-drug plots...
  • by donnacha ( 161610 ) on Friday May 24, 2002 @11:26AM (#3579309) Homepage


    It's probably worth noting that the Music Industry slime-wads aren't actually worried about the corruption of the play lists that payola causes.

    From the article [yahoo.com]:

    Deregulation of the radio business and rampant practices that skirt 40-year-old anti-payola laws stifle competition, drive up music promotional costs and make it harder for new artists to gain attention, the artists and record labels said in a joint statement addressed to the federal regulators and Congress.

    That's right, it's all about the mighty $.

    Why buy into a game you already own?

    • Newsflash: Corporation Concerned About Money!

      Seriously, though, these are the promotional costs that make $3 worth of production and $.50 worth of media cost $18.99 at your local Best Buy. For all the whining Slashdotters do about "Why do CDs cost so much?" they should be firmly behind any effort to eliminate the influence of independent promoters on the music industry.
  • by viking099 ( 70446 ) on Friday May 24, 2002 @11:26AM (#3579312)
    That's why I usually only listen to NPR or CDs while I'm in my car. I can't stand the horribly limited playlists of the radio stations any more.
    Not to mention the 20+ minutes of ads (not including the DJ's yapping away) in every hour of music.
    And from what I've heard, Clear Channel can be a rough company to work for. The corp HQ selects the playlists and the DJ doesn't get to choose very many songs to play, unless they're working after 9:30 or 10:00 pm (and who's listening then anyways?)
    When I'm at work, I listen to Wolf FM [wolffm.com]. They've got some ads, but the ratio of music to ads is very high.
    • by Binky The Oracle ( 567747 ) on Friday May 24, 2002 @12:13PM (#3579652)

      I lost my last shred of faith in commercial radio when the 80s stations showed up. I really like 80s music, and you would think that with an entire decade to choose from, I wouldn't hear "Come on Eileen" and "Too Shy" every single day! But I do.

      Oh, they do give us the all-request lunch hour. As long as your request is on their "approved" list. I actually had a dj tell me that they couldn't play a tune (that he liked a lot and even had in the library) because New York wouldn't let them.

      There is no local radio anymore.

      • Local radio still exists in colleges mostly. College radio plays tons of great unknown stuff, usually local. It's kinda of a mixed bag though, as different djs have VASTLY different tastes, but better than hearing the same song 20x a day
        • by Binky The Oracle ( 567747 ) on Friday May 24, 2002 @01:57PM (#3580299)

          I thought about mentioning college radio, but didn't because it wasn't really related to my initial gripe. Since you bring it up, however...

          With the exception of smaller schools whose transmitters are very low power or cable-broadcast only, even college radio has become increasingly programmed and wooed by major label interests. On the one hand, they aren't really beholden to anyone yet, so you do sometimes get unique and alternative music. More and more, though, I've found that most college radio is simply playing the stuff that's on its way to Clear Channel because the labels swoop in and throw a bunch of swag at the students who gleefully go along because they're now talking with the "big boys." The majors use College as a test bed for new albums. It's the minor leage of commercial radio.

          I highly recommend the book "Confessions of a Record Producer" by the pseudonymous Moses Avalon. He outlines what really happens when you get signed. Here's a rough paraphrase from memory:

          1. Compete with 100,000 other bands to get a contract.

          2. Get signed.

          3. Now you get to compete for label attention with all of the artists already on the label - Madonna, U2, etc. Assuming you make the cut...

          4. Record and press the album. It gets released to college radio as a test balloon. If it flops, your career is over. If it does ok...

          5. Commercial release to limited major markets. If it does ok...

          6. Mass release to multiple outlets and a full-blown PR blitz.

          If you want proof of concept, go to your closest major university station (UCLA, NYU, UT, whatever) with your latest album and try to get it on the playlist. It won't happen except at schools that are too small for labels to bother with, or schools that have a fierce indepent streak in their culture (e.g. Berkeley).

          Yes there are college stations that are still diverse. I think San Jose State is one of those (I never knew if I was going to hear thrash metal, techno, or yodeling), but they are getting fewer and farther between, and with the increasing economic pressure on Universities, look for additional "corporate sponsorship" to bleed over from the football program.

          • Perhaps my views are biased then, since my only exposure to college radio have been San Jose State, and Clarkson U's radio programming, both of which are quite diverse.
      • I just want to thank you. I read your comment at lunchtime, and now I've had fucking "Come on Eileen" stuck in my fucking head all fucking afternoon! I hope your happy! :)
  • Well, of course... (Score:5, Insightful)

    by dcigary ( 221160 ) on Friday May 24, 2002 @11:27AM (#3579313) Homepage
    Well, of course ClearChannel follows "what listeners want to hear". They TELL them what they want to hear. THEY make the play lists. Absoultely absurd response on the part of CC.

    CC: "These are not the bands you are looking for"
    PUB: "These are not the bands I am looking for"

    CC: "You will listen to our drivel and enjoy it"
    PUB: "I will listen to your drivel and enjoy it"

    • by bpfinn ( 557273 ) on Friday May 24, 2002 @12:02PM (#3579576)
      According to Clear Channel research, I apparently want to hear:
      • Commercials
      • Chatty DJs
      • The same 4 songs every hour
      • Make that STUPID commercials. For whatever reason, CC stations seem to run a more obnoxious grade of commercial that is much more poorly made than average.

        OTOH, one CC station here actually has intelligent-sounding DJs that keep their mouths shut when they have nothing to say. But it's a straight-up country/western station and doesn't have any "morning drive" or similar segments.

    • The sad thing is that the radio stations don't even ASK the public about what they like! I used to work for a small radio station and there was this interesting conversation I had to have with major labels every week, it went kinda like this:
      Major Label(ML): I've noticed our band is not in your (billboard)top ten.
      Program Manager(PM): yup, people haven't requested it (because it sucks).
      ML: what would it take to get the band into the top ten?
      PM: (now here is where I fill in my 'wish' card) I would need to do some promotions, how about a stack of CDs T-shirts and a signed item or backstage passes.
      *A bit of dickering, later*
      ML: OK well send that stuff out to you and we HOPE that this'll get us into the top ten.

      This conversation would then occur again to try and get their bands closer to number one - that's when the anty gets upped. You can then ask for interviews, and probably other interesting stuff - and get it. Don't think that all of this stuff is handed directly to the listeners...most are divied up by the radio station owners and the sloppy seconds are relagated to promotions.

      I quiver to think of what the offerings are to larger (real) radio stations! It's sad when thinking that labels who put out some really good product *cough* Thrilljockey, [thrilljockey.com] Touch and Go [southern.com] *cough* can't compete.

      So, the moral of the story is that sometimes 'payola' is not money, but 'promotional goods'.
      *Now that I've divulged this sensitive information , this may be the last time you hear from me before my door gets busted down.
      • You post makes little sense. You say that you were inticed by payola based not on money, but on promotional materials from bands you didn't like?

        You ignored the bands you did like because they can't afford to compete? Even an unsigned band must have CDs they could give away. It would be even easier to get interviews, autographs, personal apperances etc. These types of things are very expensive for major artists, but cost next to nothing for smaller labels. This seems like a playing field where they could compete.
      • "The sad thing is that the radio stations don't even ASK the public about what they like! "

        Of course they do. A friend of mine gets called every week and they play a couple dozen song clips and ask her to rate how familiar she is with the song, and how much she likes the song. These are the surveys that define ClearChannel's playlists.
      • by KelsoLundeen ( 454249 ) on Friday May 24, 2002 @02:07PM (#3580357)
        This is off-topic (more or less), but I felt an urge to contribute my own personal experience in the pre-digital radio industry:

        I used to work for an FM station, too -- KQ102 in Canton, Missouri -- and it was pretty interesting. It was from 1988-1989 -- and seemed to be the time right before "digital" took over everything FM.

        Everything we played was on 45s -- vinyl -- and each 45 was rated according to its "tempo."

        There were thousands of 45s at the station and about ten different tempo numbers. A #1 song was really, really fast -- and a number 10 was really, really slow.

        Someone listened to all the music and -- based on the tempo -- placed them into the appropriate tempo bin.

        Now, our mission was to look down at our playlist and play songs of varying tempo. We had markings like 1-5-8, or 2-6-10 to indicate the next three songs (fast, medium, slow) and breaks for each commercial or public service announcement.

        The idea was that you were supposed to take a 45 from the front of the bin, play it, and then put it in the back of the bin. Of course, it didn't work like that, since our playlist was based on tempo and not song titles -- so all the shitty stuff was in the back of the bins never to be touched, and all the good stuff was in the front.

        And we only had to hit our commercials plus or minus two minutes -- and give our top of the hour station announcements within 60 seconds plus or minus -- so we had a *lot* of leeway to play what we felt like, when we felt like it. It was fantastic, actually.

        We broadcast out of a tiny white house that had been converted into a radio station. Transmitter in the living room, main booth in one bedroom, production studio in the other, and the sales office in the kitchen.

        And we had a *huge* listener base. I used to do a lot of Friday and Saturday night shifts -- from 8pm to 2am -- and, man, I had groupies. I couldn't fucking believe it. People would hear your voice -- on account they'd be playing you at parties and in their car -- and they'd drop by in droves to see what you looked like. It was sick and bizarre, but it was loads of fun. We'd be sitting in the booth and staring out the window into the backyard and see all these people back there, waving and trying to get your attention.

        It was really a bizarre thing but amazingly exciting. The fact that we were spinning 45s, playing more or less what we wanted (within reason) made for some amazing nights of music.

        Sadly, KQ102 was put out of business by the rise of digital and the fact that they were one of the last stations in the area to still use vinyl. We actually had *turntables* -- as if we were a college radio station. It was a trip.

        Great fun. Huge listener base. Gave away lots of prizes and cash.

        But it was pretty much stomped out by corporate radio.
  • by dave-fu ( 86011 ) on Friday May 24, 2002 @11:30AM (#3579339) Homepage Journal
    Boo hoo. They fought for deregulation and now they're feeling the bite in a purportedly free market of monopolies. Fuck them all. They made their bed, now sleep in it.
    Am I supposed to lose sleep knowing that they've gotta pay their indies $10K/song/station to get an add because the stations are all owned by the same conglomerate when the record labels have joined into a conglomerate and engaged in price fixing?
    I don't listen to radio (except for the independent, supersuave WFMU [wfmu.org]) and I can't wait until inevitability catches up with the RIAA.
  • Pot, kettle, black (Score:5, Insightful)

    by JoeWalsh ( 32530 ) on Friday May 24, 2002 @11:31AM (#3579341)
    Oh, so the industry that is effectively controlled by five companies is saying the radio industry is too concentrated?

    Oh, boo hoo. Live by the sword, die by the sword.
    • The group is stating that the practice of "independent promotion" is really a new form of payola


      In other news, the American Medical Association is warning that cigarettes may kill you, and NASA has released a press release stating that the sun is "very, very hot."


      I mean, isn't it totally common knowledge that independent promotion is payola vaguely disguised? I can only assume ClearChannel is making noises to push a little bit harder, squeeze a little bit more, and this is the RIAA pushing back. 'Cause this has been going on forever.

  • Like Movie Theaters? (Score:3, Interesting)

    by --daz-- ( 139799 ) on Friday May 24, 2002 @11:31AM (#3579344)
    It sounds like what might happen in the next few years is that companies like Clear Channel will do what they say they don't and only start playing the artists that they have on tour or promote.

    You'll only hear certain artists on stations that are owned by the company that promotes their label or tour.

    It'll kinda be like movie theaters where certain movies are only carried by Regal, or General Cinema, etc.

    Remind me why big media companies are a good thing again?
    • because they can give larger campaign donations.

      an industry with many small players suffers from the fact that none of the players can give very much and most of them don't want to give any at all, because a) they don't need any news laws or b) they figure someone else will fight the fight for the industry.

      in an industry with a few large players, however, each of the players can give very large donations, and they tend to stick together to a) fix prices for mutual benefit and b) buy the legislation they need in order to self-perpetuate.

      congress knows this and adjusts the industry accordingly. for instance, deregulation is just congress's way of allowing an industry to clump together, creating large generous conglomerates. it makes congress's job much easier: fewer checks to cash, and each check is larger.

      -c
  • by Skidge ( 316075 ) on Friday May 24, 2002 @11:35AM (#3579378)
    "It is blatantly absurd that they attempt to hold the radio industry accountable for the creation or execution of business practices that they control," [Clear Channel spokesperson] Taylor said. "The money comes from them."

    The recording industry is complaining that the recording industry is paying to have certain songs played on the radio. They why don't they just stop paying?

    Of course, all the labels will have to agree to do this, since if all but one stops, and this payola really works, that one label will have tons of airplay.
    • by jonerik ( 308303 ) on Friday May 24, 2002 @11:44AM (#3579458)
      The recording industry is complaining that the recording industry is paying to have certain songs played on the radio. They why don't they just stop paying?

      Good question. For one thing, it looks an awful lot like collusion, which is illegal under U.S. anti-trust laws. For another thing, it's been tried before - about twenty years ago - when record labels actually banded together to put indie promoters out of business. It almost worked, too, but so many artists (whose careers depend on airplay and the sales the airplay generates) complained that the labels were forced to back off.
    • Of course, all the labels will have to agree to do this

      Well, they've done fine one that point so far, so I really don't see how that could be a problem...
    • The recording industry is complaining that the recording industry is paying to have certain songs played on the radio. They why don't they just stop paying?
      Yeah, they attempted that [salon.com], but chickened out when the artists realized that their songs weren't being aired:
      In 1981, upset about the influence amassed by a group of powerful indies known as "The Network," Warner Bros. and Columbia (before CBS sold the label to Sony) launched a boycott. Like today, powerful indies then were getting $3,000 or $4,000 an add, even though they rarely talked to station programmers. According to Fredric Dannen's 1990 music industry exposé, "Hit Men," the boycott quickly collapsed after the labels' marquee artists -- Loverboy (a platinum act at the time) and the Who among them -- revolted after having trouble getting their songs on the radio.

      Personally, I think the record labels should have just stuck with it. After all, it was only a short-term loss, but surely would have been a long-term gain as other record companies bought into the idea.

    • by Ooblek ( 544753 ) on Friday May 24, 2002 @12:18PM (#3579690)
      The recording industry is not, contrary to popular belief, one large company. I keep wondering why the RIAA is claiming that "their" stuff is getting pirated, when they are really nothing more than the music-industry's version of the anti-software piracy association. A non-profit organization that has unlimited sources of fund to specifically exist to exterminate practices that are not in the interest of the members.

      The music industry, for the most part, does not control the radio stations. Getting your song played is an endeavour in marketing, costing money like any other marketing device does. Did you think that new songs got played on the radio because people actually liked them? No, someone does some sort of market analysis and them determines which artists get that kind of exposure. The catch is that the music publishers, like any other business, does not like to pay for this. So they try to get new artists to sign contracts that pretty much makes it so that the burden of funding the marketing effort is the artist's cost of doing business. This is essentially what Courtney Love was complaining about in that big speech she did that knocked the industry. I find it ironic that she found their practices against anything she learned in high-school economics and at the same time downplayed the importanct of extended education by claiming all P2P had was "college boy" music. I believe had she gone to college, she probably wouldn't have been backed in a corner and forced to sign a record contract that had all this marketing expense tacked onto it. No one forces the artists to sign their contracts. However, as you hear about how some of the most popular bands lived before signing (shoplifting in order to eat, squatting in abandonded buildings, etc), you understand why they sign the first paper stuck in front of them. Have a college education or alternative career as backup, then you have more leverage to say no to certain items in the contract. It also depends on your selected manager, who has a lot of power to screw the artist too. I used to work in music studios, and some of the managers are ex-roadies. Most roadies are dumb as a box of rocks. (Like the time the Fleetwoood Mac roadie couldn't figure out why the circuit breaker kept popping when he plugged 2 refrigerators into an outlet.)

      The whole payola thing got quashed, now they figured out a new way to get money to play music. They will figure out a new way to do it if their current way gets outlawed. The great thing about P2P is that you get to hear a lot of music that is not played on the radio. To tell the truth, I don't listen to the radio much anymore since I don't tend to like what they choose to play. If I had my choice, there would be a station that played Oakenfold, Sasha, Van Dyk, and all the other European artists that really know how to make music but have not gotten enough exposure in the US to make them mainstream. I guess this is what "college boy" music is....but I'll tell you, I'd rather listen to this than hear the "real music" that has Courtney Love droning and screaming into the microphone. (Who would have thought SHE would consider herself an audiophile?)

      (If you like Courtney Love and you are insulted by this, sorry, but get over it.)

      • some of the managers are ex-roadies. Most roadies are dumb as a box of rocks.

        Most musicians aren't much smarter. If they had any brains they wouldn't be put in a position where they feel like they have to sign the infamous "standard contract". Of course, you already said that.

        And strangely a lot of roadies seem to be musicians who aren't able to go anywhere on their music skills. And then there's the managers and musicians who end up as scouts. It's like one big mental midget circle jerk.

        Wow, that really sounds like flamebait. Oh well, being a musician myself, I feel I have a right to say that, flamebait or not. Besides, it'll be amusing trying to get my karma back up to the cap ;-)

      • To tell the truth, I don't listen to the radio much anymore since I don't tend to like what they choose to play. If I had my choice, there would be a station that played Oakenfold, Sasha, Van Dyk, and all the other European artists that really know how to make music but have not gotten enough exposure in the US to make them mainstream.


        Let's take Paul Oakenfold, and examine this for a minute... He's a dj... so how is he "making" music? (I know he produced a couple of tracks on the Swordfish soundtrack but they suck anyway)

        My point is that Oakenfold isn't about the music any more than any pop band from the US. He's also all about the image. He appeals to people that like things that seem more "underground", like yourself, though it's still all an act. I have a question for you: Would you still like the artists you mentioned if their stuff was pushed and accepted like current pop? Would you really?

        Don't get me wrong, I mean, I like a lot of stuff from the artists you mentioned. Shit. I even like BT sometimes, but it's not for the image. It's purely for the sound. In fact I like some N'Sync et al songs too. (not to be confused with liking the group in general) But I don't care whether a song is popular or underground or trendy or campy. The only thing I care about is how it sounds in my ears.

  • Oh, Woe is me! I had to had to steal yet more money from the artists I supposedly represent to cover the costs of promotion. Since I'm only making 1400% profit instead of 1500%, I have to settle for a 911 instead of that Ferrari!
  • The answer is... (Score:5, Insightful)

    by r_j_prahad ( 309298 ) <r_j_prahad@@@hotmail...com> on Friday May 24, 2002 @11:36AM (#3579388)
    Tired of payola? Pissed off by the RIAA? Think our elected officials are owned by Hollywood? Then you need..... PIRATE RADIO! Irreverant, illegal, apolitical, and hard to find. Broadcast schedule? What's that? Lots of fun, tho, and guaranteed to pick up the corners of your mouth.

    http://dmoz.org/Arts/Radio/Formats/Pirate_Radio/
  • Seriously, someone should investigate their buying of senators and legistlators over the past 20 years. I'd bet they put organized crime to shame when it comes to greasing palms.
  • This [slashdot.org] is excellent information that all should read.
  • RIAA is evil

    MPAA has nothing to do with music, but they're still evil

    Clear Channel sucks

    Radio is awful, I listen to NPR, CDs and OpenBSD music cd's only

  • by cheesyfru ( 99893 ) on Friday May 24, 2002 @11:46AM (#3579471) Homepage
    Not to side with the RIAA (shudder), but Clear Channel is a pretty ugly [salon.com] company. You probably listen to them now and don't even know it. There's a station list available at http://www.cjr.org/owners/clearchannel.asp [cjr.org]
    • One of the ClearChannel stations on that list, WPLA-FM [planet93.com], happens to play quite a bit of unheard new artists and considers listener input to what they play. Bash ClearChannel all you want for being a large, corrupt corporation but the odds are the station manager at your local ClearChannel station lacks the balls to stand up to management and play what his audience really wants. And there's also the possibility that your market just doesn't support your particular taste in music.
      • Bash ClearChannel all you want for being a large, corrupt corporation but the odds are the station manager at your local ClearChannel station lacks the balls to stand up to management and play what his audience really wants. And there's also the possibility that your market just doesn't support your particular taste in music.
        Clear Channel's entire strategy is to eliminate local managers and talent, and run everything from a centralized control center. Sort of the way Shadow Traffic and Accuweather do it now. They aren't all the way there yet, but for their smaller markets they already have regional control centers where DJ's pre-record up to 8 shows during the course of an 8 hour shift. CC have a local stringer to come on with any breaking news, and of course a local advertising manager, but other than that they have zero presence in the local area. Zip, nada, zero.

        They aren't all the way to their goal of "lights out" DJ'ing yet, but they are getting close.

        sPh

  • How hilarious (Score:3, Insightful)

    by jayhawk88 ( 160512 ) <jayhawk88@gmail.com> on Friday May 24, 2002 @11:48AM (#3579482)
    The RIAA complaining about a monopoly. Heh, that just makes my day.

    You really have to marvel at the arrogance of these people. They truly feel they can do whatever they want without consequence. Yeah I know, 50 years of history proves they have been able to so far, but even the dumbest dog will eventually attack it's master if it's beaten enough.
  • by chompz ( 180011 )
    So downloading music off of the internet is SAVING them money on promotion? It is absurd that they are so confused about thier business practices that they bitch and moan when people "steal" from them, even when it costs them money to put it on the radio.
  • So this is basically the RIAA saying, "Hey, you know, we tried to buy influence to assert more control over what listeners hear, and now a company with enough clout has arisen to force us to keep doing what we've been doing all along. Stop us before we skirt the payola laws again!"

    I mean, they're saying that only the payee and not the payer of payola is at fault. They are probably enviously eyeing Bill Gate's mansion, while theirs is only on the level of, say, Aaron Spelling.

    So they'd like to cut their marketing costs (remember, this is why they say CDs cost so much and that they are a vital part of the process despite the fact that CD recording and distribution no longer requires the resources of a major corporation to undertake), and they'd like the Senator from Disney to do it for them.

    Then later on they'll get bored and command him to mud-wrestle midgets for campaign contributions.

    Dance, puppets! Dance!

    I so don't care who wins this battle.
  • Oh booo hoo hoo....

    Poor poor RIAA, now that there are radio corperations big enough to tell them to stuff it and dictate terms they go crying to the Govt yet again...

    "Wahhh, he's bigger than me! make him smaller! because he wont let me tell him what to do anymore!!! Wahhhh!"

    i hope clear channel get's fricking HUGE. and then slams the door on the RIAA's hands.

    hey, clear channel... ever thing of signing artists yourselves? how about bypassing the record labels directly...
  • One organization is driven by profits to produce the least amount of lowest-common denominator bands that would maximize profits, while the other organization is driven by profits to play lowest-common denominator bands.

    Oh yeah, they get extra points when they can use thier influence as a tool to condition the masses into cattle like passivity.
  • by edremy ( 36408 ) on Friday May 24, 2002 @11:56AM (#3579550) Journal
    RIAA complaining about ClearChannel?

    -or-

    The president of Kazaa complaining that people are pirating their software by using programs like KazaaLite?

    All I have to say is BWAHAHAWHAHWHAW!

  • they only rotate 30 songs on the radio, that means thereare thousands of songs that are never heard... isnt dling a song that isnt on the radio free advertising?
  • Not trying to plug the service, but I'm curious how new ideas like XM will fit into this.

    I think it's easy to agree that a lot of the slashdot audience despises two things in current radio: limited playlists, tons of ads (well and yappy dj's too I guess). Both of these facts exist because the radio station has to maintain a certain level of income.

    Does XM run ads? Do we know how they pick their playlists?

    Seems to me a subscription based radio is the "next step". Pay a little to get less ads, get more music, get a better variety of music. I just figure paying a subscription will reduce the pressure to maximize profits just a tiny bit, leaving some wiggle room so the radio can actually be enjoyable to listen to.

    Course the question is, does XM achieve this?
  • ...can and will be used against them.

    If the RIAA lawyer are worth there money they would make a great case, again Clear Channel as well as against the RIAA. So lets see what they have to say ;-)
  • Who first read the headline as...

    Music Industry Seeks Payola.

    Z.

    "Nothing new there" I thought.

  • by abischof ( 255 ) <alex&spamcop,net> on Friday May 24, 2002 @12:12PM (#3579650) Homepage
    For reasons I'm unsure of, Salon really seems to really be on top of the poison that is payola [salon.com]:
    • Pay for play [salon.com] "Why does radio suck? Because most stations play only the songs the record companies pay them to. And things are going to get worse"
    • Fighting pay-for-play [salon.com] "Sources in the music industry call for a federal clampdown on the new payola"
    • The "Bootylicious" gambit [salon.com] "Can a hot new single from Destiny's Child help Columbia Records crack the indie promoters' control of pop radio?"
    • Payola City [salon.com] "In the wild world of urban radio, money buys hits -- and nobody asks questions. "

    Man, that reminds me -- I really ought to subscribe to Salon [salon.com] :-/.

    PS Since ClearChannel has a large stake in XM Radio [xmradio.com], I completely expect XM Radio to support payola >:-[. But, does anyone know if SiriusRadio [siriusradio.com] also support payola? I'm thinking of subscribing, but I wouldn't want to do so if they're corrupt as well.

    • I'm thinking of subscribing, but I wouldn't want to do so if they're corrupt as well.

      You actually think that any of them aren't corrupt? I thought somebody with a three-digit uid would have been much more cynical by now...

  • by Animats ( 122034 ) on Friday May 24, 2002 @12:17PM (#3579678) Homepage
    Gee, maybe the RIAA should try distributing their material free over the Internet, to work around the radio monopoly....

    Clear Channel's motto is "How many ways has Clear Channel reached you today". And you thought Microsoft was obnoxious. Their corporate creed is "We believe the ultimate measure of our success is to provide a superior value to our stockholders.".

    Clear Channel even owns Rush Limbaugh. [clearchannel.com] He was a big help in getting Congress to remove all limitations on one company owning all the radio stations.

  • by Karl Cocknozzle ( 514413 ) <kcocknozzle.hotmail@com> on Friday May 24, 2002 @12:18PM (#3579688) Homepage
    ...And it ain't payola.

    Part of the story here is that Clear Channel is also in the "Concert Promotion" business. I put the term in quotes because it's more like legalized racketeering. Their standard procedure, regardless of what specific business they're working in, is to make as much for them regardless of the damage it does to their customers, business partners, and the public. Their theory is, what's good for us is good for us, fuck all others. (I can already see the knee-jerk "the market will decide" Rush Limbaugh clones racing for the reply button about how this is a good thing...Read-on first, please.)

    So CC will do things like leverage all their businesses... So, if you want to play a concert at the desirable venues (ie. Not a shitty dive bar) in XXX City, you'll have to have a "music promotion" contract with WXYZ to get your tunes played, a concert prmotion contract with CC Entertainment which also includes a budget for ads on WXYZ, agree to do these other CC shows in other cities, AND do it all for what CC is offering.

    In other words, CC is victimizing the RIAA membership the same way the RIAA members victimize their customers. (Ie. Accept our lowball offer to do a conecert, or get no airplay the month you play at a competing venue vs. Pay $19 for a CD we paid $2 to create.)

    What we're getting ready for is a battle royale of influence and political contributions, as the two big behemoths who both think they own Congress and have a constitutional right to their obsolete business models go toe to toe, trying to see who can spend the most to get their way.

    If I didn't know that this battle will only result in the consumer being screwed even further, I'd say get some popcorn and enjoy the show. As it is, I'd say go pirate some music on Kazaa and start your own pirate radio station.

    Or just jam CC properties, if you don't feel like you'd make a good air personality... Tuning your 50 watt transmitter to +- .05 mhz of their frequency and driving circles around their transmitter should give their engineer a nice Excedrin headache...
    • Pay $19 for a CD we paid $2 to create.
      Actually, even $2 may be an overestimate [salon.com]:
      The CD itself costs about 32 cents in a large production run, according to Michael Pardo, V.P. of sales for CD duplicator Greenwood Solutions. Add packaging and the price goes to 54 cents. Add the cut for a new artist, somewhere between 10 and 50 cents, and your cost nears a buck.
  • This is Good News (Score:4, Insightful)

    by cybermage ( 112274 ) on Friday May 24, 2002 @12:22PM (#3579714) Homepage Journal
    While the nature of this story sounds mighty hypocritical on the RIAA's part, you've got to love the results. Consider the potential outcomes:
    • (definite) Two antitrust-violating groups burn serious money attacking each other. Money that could be used for evil purposes.
    • (possible) Payola through "independent promoters" gets banned. Radio station formats may open up a bit.
    • (possible) More people, driven by disgust at the practices of either group seek out independent labels and/or stations.
    • (possible) This is one more iron in the fire for RIAA's legal staff. While they're paying attention to this, some kid in Kansas is burning a mix CD for his girlfriend...and getting away with it.
    • (possible) Federal prosecutors decide to "follow the money" and end up prosecuting members of the RIAA for being responsible for funding these practices.

    It is possible to dislike the RIAA and love this at the same time. It's like a machiavellian wet dream. Couldn't have achieved better if we'd planned it.
  • by Rogerborg ( 306625 ) on Friday May 24, 2002 @12:30PM (#3579766) Homepage

    How many US citizens does the RIAA represent? No, I don't mean how many artist or backroom techies or even corporate weasels in suits, because it's not actually representing them. The RIAA (rather the labels that comprise it) are businesses. As such, they represent their owners, not their employees, and not third parties relying on them to market their talents or products. Answering only to shareholders is a fiduciary duty for a publically traded company. If happy employees are the key to financial success, great, but if sacking 95% of them becomes a smarter move, they'll do that without batting an eye. The RIAA represents only the shareholders (or private owners) of the companies that comprise it.

    So, does anyone actually know how many US citizens are shareholders in the music businesses that comprise the RIAA? Do these US citizens know? Do they know or care that their ownership legitimizes RIAA demands on Capital Hill?

    I ask this because I keep hearing about how much money the RIAA represents, and there seems to be some sort of connection between this and the political influence that they have. Now, in a democracy, this can't be true, because then your vote would count more depending on your income, right? And that's not how a democracy works, is it?

    So, let's hear it. Does anyone know how many US citizens the RIAA actually represents (that's US shareholders, not employees)? I'd really like to hear someone in government asking this, because it might (not likely, but perhaps) make Jane Investor start asking exactly where her financial representatives have been gambli^H^H^H^H^H^H investing her money on the stock market, and who she's legitimizing with her investment.

  • She insisted that decisions about airplay are driven strictly by research showing what the public wants to hear
  • "She insisted that decisions about airplay are driven strictly by research showing what the public wants to hear."

    That's bass-akwards. By definition, you can't run a poll asking what people want to hear. What the public wants to hear is something different.

    They hear something and they like then at that moment or they don't. The same thing at another time might get a different result.

    These media corporations have the depth of a puddle of dog urine and the soul of adding machines.

    What THEY want is to use yesterday's content as filler between the ads. I'm sure they'd be happier to do away with the content altogether (All those freaky artists. What do they know? And that noise?) and run informercials 24/7. "Sigue, Sigue Sputnik" writ small and quiet.
  • I work at a student-run radio station, and you wouldn't believe how great the state of music is in america. We get tons of music everyday from great independent artists. But if you listen to Clear-Channel, you're likely to think that American music has reached an all-time low.

    And Clear Channel is the company that imposed a ban on about a 1000 songs after September. It hurts artists when their music isn't played anymore.
  • by beleg777 ( 551987 ) on Friday May 24, 2002 @12:46PM (#3579878)
    RIAA offers bribe. "Look everyone, THEY ARE TAKING BRIBES!" Why are people so stupid? The groups also criticized broadcasting giants, such as industry leader Clear Channel, which owns 1,225 stations nationwide, for flexing their "sheer market power" in ways that can "make or break a hit song." Yeah, nobody wants industry giants to use "sheer market power" to determine the fate of others. Apparently it's bad if such an action crushes a song, but not an artist. Or maybe they should just come out and say that everything that doesn't result in profit for them should be illegal.
  • thinking out loud (Score:2, Interesting)

    by slide-rule ( 153968 )
    I am not really into the "get / listen to music online" scene (so keep this in mind as you read the next paragraph). Steadily over the past few years, I have tapered off buying CD's to almost nil, and I've sworn off the local radio stations (not so much their CC tie-ins, but that their playlists are insanely short; I heard the same song going to work three days in the same week... and it wasn't a great song to begin with. ARGH).

    So now I'm wondering... would it be feasible to setup a slashdot-style online music forum for independent artists to submit music tracks to, such that members of forum could categorize, comment on, rate/rank those submissions to get streamed online? Wouldn't need much of a DJ (per se) as much as a few people to keep the forum running. Heck, if it works, you could probably let members design their on CD for burning for, say, $5 to get sent to them, the proceeds of which go to the forum upkeep as well as the artists themselves. Granted it would take a little while to work up a good user base, but would something like this work? Pros and/or cons?
  • Radio stations aren't out there for for the benefit of artists or record companies, they are out to make money like any other business. If it takes money to get them to play your record, that's fine. They aren't obligated to play anyone's record. They aren't even obligated to listen to anyone's record. I don't see how this is a problem. Why is it "bad" to accept money to play a record? Because someone else didn't get an opportunity to be heard? They are NOT obligated to hear anyone. This isn't socialism here, it's capitalism!

    I will say that eventually this behavior will lead to people to stop listening to a station, as their content will inevitably turn into crap. I personal don't listen to radio for music for that reason. It's all preprocessed pop crap. Their own behavior will drive them out of business, as no one will want to advertise on a station that plays crap and has no listeners. We don't need any legislation to fix this!
    • You've got it backwards. Most people listen to the radio to find out what the biggest hits currently are. They don't think for themselves about whether a song is good or not. They just assume that if it's being played a lot, a lot of other people must like it and therefore it must be great. It just seems bizarre to me that the RIAA would be the ones complaining, since they are the ones who instigated the whole thing. Since they could not directly pay the stations for promoting certain songs, they came up with these middlemen to do it for them. Now the middlemen have more control than they like, so they decide to do something about it.
  • by kalidasa ( 577403 )
    First Microsoft is right for once, and now the RIAA is right for once. Better step up the fur coat exports to Gehenna, 'cause it's getting COLD down there.
  • I found this part to be confusing:

    "Artists, in particular, are hurt because under most recording contracts, promotional costs come out of their royalties", said Michael Bracy of the Future of Music Coalition.

    Why? I thought it was the record company's job to promote music. Shouldn't that come out of their percentage? If it's not worth promoting enough to make a profit, they probably shouldn't have signed a contract with the artist.

    What happens when the record label decides to do a couple $100,000 promotional parties^H^H^H^H^H campaigns on relatively unpopulated tropical islands? "Er, sorry, but your promotional expenses exceed your royalties. You owe us money."

    -ez
  • I'm a (part-time) indie promoter in Canada. I call campus stations and do my best to turn them into major label mouth pieces with free things and celebrity access.

    99% of the people who can afford to play that game are big labels. Universal, EMI, Virgin, La Face, at least as big as Koch.

    Clear Channel must really have their game together if the RIAA is willing to blow their own tool. I mean, what do they think, radio stations are going to *buy* CDs? The campus stations I work with don't have the money to keep the lights on, without free stuff they'd dry up.
  • [sorry about the double post, damn return key.]

    My favourite quote from the article:

    But a spokeswoman for the nation's biggest radio station group, Clear Channel Communications Inc., which was singled out for criticism in the letter, dismissed the RIAA's complaints as "absurd." She insisted that decisions about airplay are driven strictly by research showing what the public wants to hear.
    Man, this woman is on some bad crack.

    Paul

  • I remembered reading several of these articles [salon.com] in the past. Very informative about the whole situation. It's about time someone attempted to do something about it.
  • Imagine there was no AM or FM radio, just ubiquitous wireless networking. Moreover, within an area the size of a city, there was multicasting capability over the network. What would most people tune in to? Bittney Spears, regardless of city.

    That is why there is Clear Channel. They have a significant economy of scale in operating multiple multicast (i.e. FM broadcast) operations in multiple cities.

    Now if we really had that ubiquitous wireless networking, perhaps small stations playing more "interesting" music could integrate listeners from multiple metropolitan areas (around the world) into a large enough audience to be useful. But in any particular city on its own, they would be unable to break even because of the small size of their audience.

    Anyway, I'm not too bothered about the monopolization of the FM broadcast band, because there is always XM, which does provide "interesting" music because they have a nation-wide signal, and a different business model.
  • >Artists, in particular, are hurt because under most recording contracts, promotional costs come out of their royalties, said Michael Bracy of the Future of Music Coalition.

    Yeah, well if the record companies so concerned about the artist then perhaps the record companies should foot the bill of promoting the product themselves.

    • The artist writes the music and the Record company demands that the artist signs over the publishing rights to them.
    • The artist records the CD and the record company charges the cost of the studio time back to the artist to be paid out of their royalties.
    • The record companies promote only the albums that they think can be the next britney buster and they charge that promotion cost back to the artist' royalties.
    • The record companies have a suggested retail price of anywhere from $15 to $18 per CD. If the artist is very lucky they'll get about $1 of that.
    • The RIAA puts Napster out of business by winning a multi-million dollar lawsuit allegedly to regain the royalties that the artist have lost. They then tell the artist that THEIR songs wern't being traded on Napster and therefore the artist don't actually get any of that lawsuit money.
    • The RIAA (Excuse me, exactly how many "artist" are members of the "Recording Industry Artist of America") then calls any customer who wants to listen to their CD's on their computer a "pirate". This ticks off the customer who will then tend to buy even fewer CD's (which hurts the artist further by reducing their royalties).

    This is so transparent. The RIAA is tired of paying the payola system that they themselves helped set up. There is ABSOLUTLY NOTHING about this complaint that actually helps the artist. It's just another way for the record companies to cut more of their cost and rack in even more of their ill gotten cash while doing nothing to help the people who actually write and perform the music.

  • The RIAA has a point, but what they're really mad about is that they want more power to make and break songs. The RIAA has the power to make and break songs. So does Clear Channel. So the reason the RIAA's pissed off is because another organization can break a song that they wanted to make, or make a song they wanted to break. That's all they're upset about. Don't fool yourself into thinking they actually give a damn about artists. Also, this is a tactical move on the part of the RIAA to try to get some good press, after getting so much bad press over their previous wrong-doings.

    That said, politics does make strange issues. For this particular one, the RIAA happens to be right. No sense in refusing help from a powerful ally; just so long as you remember this is like WWII, in the RIAA is like Stalin. The enemy of our enemy is only our friend in that particular case, and only so long as our enemy is a threat.

    In fighting against Clear Channel, the RIAA may be a useful ally. However, they will not be an ally in building a new world order afterwards. They will simply want to replace Clear Channel with an organization they control.

    What is really needed is what Lawrence Lessig proposed -- free airwaves. This is now possible due to current technologies. Free does not necessarily mean unregulated, as Lessig says. The basic idea behind this is that people wanting to use the airwaves are dynamically assigned a frequency upon request. Each person would have some identifier which would help radio-goers find him, no matter what frequency he was on.

    This is very much possible with upcoming technology. We should start moving towards this ideal of free airwaves -- the airwaves need to be revolutionized to be like then net, where everyone has an opportunity to put something on them. Perhaps we can start out by making "half" of the radio-frequencies "free" in such a manner.

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