Rockbites: Rivals unite against de-facto payola, consolidation

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May 2002 • Rockbites Alternative Daily

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Rivals unite against de-facto payola, consolidation
28 May 2002

This past Friday, a broad coalition of US music-industry and artist groups—encompassing some traditional arch-rivals—issued a joint statement to the US Congress and the US Federal Commmunications Commission denouncing de-facto payola. The irony is hard to miss: one of the signatories, the Recording Industry Association of America (RIAA), is the primary source of the bribe money that’s under attack.
    Also endorsing the joint statement, among many others: The Washington based nonprofit Future of Music Coalition (FMC), who work hard year long to influence reform in RIAA practices.
    While direct payola—bribery of DJs to play particular songs—was outlawed more than 40 years ago in the US, the law was too poorly conceived to exert significant effect. A simple system of middle-men called Independent Record Promoters (IRPs), who shuttle funds from the RIAA to radio DJs, completely circumvents existing payola law.
    Continuing consolidation of large US radio stations, primarily by the aggressive Clear Channel Communications, compounds the problem. Clear Channel now owns more than 1,200 large stations in the US and syndicates its music shows to an additional 6,500. They own concert venues, billboards, booking agencies, and concert promotion companies along with their majority radio share and yet are not considered a monopoly.
    Clear Channel boasts access to over 110 million US listeners per week. Their current, eerily Big-Brother-esque slogan is How Many Ways Has Clear Channel Reached You Today?
    According to numerous reports, Clear Channel-owned stations allegedly operate under an unwritten payola policy which the major record labels, for all their power, claim they must follow—funnelling hundreds of millions of dollars each year through IRPs into Clear Channel’s profits. The profits come at the expense of consumers, who pay more for CDs, and at the expense of artists, a higher proportion of whom fail due to lack of exposure.
    Michael Bracy, Director for Government Relations with the FMC, said, “...artists, songwriters, labels, and retailers are united in opposition to large broadcasters' claim that consolidation has improved commercial radio. Rather, commercial radio is anti-artist, anti-competitive and anti-music fan. The joint statement... emphasizes the music community's support for non-commercial radio and webcasting. It is vitally important for the federal government to prioritize support for these non-commercial outlets that program music not out of pursuit of profit, but out of love of art.” | Joint statement to Congress & FCC | | Clear Channel Communications | | Clear Channel coverage on Salon | | Future of Music Coalition | | top of page |

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