Broadcasters Agree to Fine Over Payoffs

Jeff Leeds
The New York Times
Tuesday, March 6th, 2007
Page C1, C7
The Story
The Summary: For years, radio stations have been taking payoffs from major record labels in exchange for promising to play their artists more, leaving independent record labels and their artists behind.

The new penalty, which would come as part of a consent decree with the radio companies — Clear Channel Communications, CBS Radio, Entercom Communications and Citadel Broadcasting — would reflect perhaps the toughest F.C.C. enforcement of the decades-old regulations that prohibit broadcasters from taking secret payments in exchange for playing specific songs. Critics have accused the agency of lax enforcement.

The coalition between broadcasting giants and recording giants has put a choke-hold on the independent labels as well as new and up-and coming musicians. In an industry where looks mean just as much (if not more) than talent, it hurt the truly talented ones.

Payoffs for playtime have been happening for a long time, and has been illegal since 1960.

Media consolidation doesn't help the situation much either. It makes it harder for bands to grow a local fanbase, as most radio stations have set play-lists from their corporate offices, and can't stray from them. Independent internet radio has grown, as has the popularity of satellite radio, but they have drawbacks as well. (as I'm writing I'm listening to my boyfriend's internet radio show)

The new penalty, which would come as part of a consent decree with the radio companies — Clear Channel Communications, CBS Radio, Entercom Communications and Citadel Broadcasting — would reflect perhaps the toughest F.C.C. enforcement of the decades-old regulations that prohibit broadcasters from taking secret payments in exchange for playing specific songs. Critics have accused the agency of lax enforcement.

It's true, since the 2004 "Wardrobe Malfunction" at the Superbowl, the FCC has concentrated less on media consolidation and other dealings of the such, and more on obsenity and sexual content. I'm sorry, but I see a nipple, two even, at least once everyday, most days more. Any one who glances in the mirror before they bathe does. What I don't get to do everyday is here good music from new artists who may not have signed with a major record label.

Mr. Spitzer reached a series of settlements with the four major music conglomerates — the Universal Music Group, Sony BMG Music Entertainment, the EMI Group and the Warner Music Group — totaling more than $30 million. CBS Radio and Entercom settled cases with Mr. Spitzer’s office for a combined $6.25 million.

The settlement with the F.C.C. comes at the same time as a separate arrangement in which the broadcasters agreed to devote more time to playing artists who are not signed to contracts with the four big record companies.

The new agreement sounds intersting:

The deal, negotiated by the American Association of Independent Music, provides that the radio companies will broadcast the equivalent of 8,400 half-hour segments of music from such artists. The segments can run any time from 6 a.m. to midnight any day of the week, according to people briefed on the deal.

Drive time is prime listening time. Between 6am and 9am and 5pm and 8pm are the optimal hours for listenin to the radio. Under these rules the radio companies can shove those in during the work day, or during the late hours when people watch TV or have family time. Listening to the radio isn't one of my evening activities.

I'm glad the FCC is focusing more on the business of media, rather than it's content. I can understand some of the reasoning for some of it's policies, but at the same time, when we fear words we only hurt ourselves. The late embracing of such words as "bitch" or "pimp" and their new meanings has brought the fear of them down. I can call my best friend a bitch, and it's a term of endearment. For more, listen to George Carlin's take on the seven dirty words.