Kobe Bryant
03-10-2007, 10:35 PM
Thanks to an anti-payola settlement between the government and four major broadcast companies, local artists and independent record labels will be getting significantly more airplay in the near future.
As reported by the Associated Press, Entercom Communications, CBS Radio Clear Channel Communications, and Citadel Broadcasting, the owners of over 1500 radio stations nationwide, has complied to pay a total of $12.5 million dollars in fines to close an investigation into ‘payola’ and to eradicate the practice completely.
All named broadcast stations will provide 8,400 half-hour segments of free airtime to independent record labels and local artists as part of the agreement. However the time can only be given to companies not controlled or owned by the BiG 4 of music labels- Emi, Universal, Warner, or Sony, as all of said labels have been caught in payola incidents within the past two years, resulting in multi-million dollar settlements.
Not just airplay is being reformatted, though, as broadcasters and independent labels have negotiated set rules of engagement” that will guide how record company representatives and radio programmers interact. The new rules will require equal access to radio music programmers for all recording companies, as well as no favoritism in their deals.
“It’s absolutely the most historic agreement that the independent community has had with radio,” Peter Gordon, CEO of Thirsty Ear Recordings; an independent record label, responded to AP. “Without a doubt, nothing else comes close.”
This is one step closer to opening new ground for variety on the radio.
http://www.defsounds.com/news/view/1054-payola-gets-stomped-out.html
As reported by the Associated Press, Entercom Communications, CBS Radio Clear Channel Communications, and Citadel Broadcasting, the owners of over 1500 radio stations nationwide, has complied to pay a total of $12.5 million dollars in fines to close an investigation into ‘payola’ and to eradicate the practice completely.
All named broadcast stations will provide 8,400 half-hour segments of free airtime to independent record labels and local artists as part of the agreement. However the time can only be given to companies not controlled or owned by the BiG 4 of music labels- Emi, Universal, Warner, or Sony, as all of said labels have been caught in payola incidents within the past two years, resulting in multi-million dollar settlements.
Not just airplay is being reformatted, though, as broadcasters and independent labels have negotiated set rules of engagement” that will guide how record company representatives and radio programmers interact. The new rules will require equal access to radio music programmers for all recording companies, as well as no favoritism in their deals.
“It’s absolutely the most historic agreement that the independent community has had with radio,” Peter Gordon, CEO of Thirsty Ear Recordings; an independent record label, responded to AP. “Without a doubt, nothing else comes close.”
This is one step closer to opening new ground for variety on the radio.
http://www.defsounds.com/news/view/1054-payola-gets-stomped-out.html