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Big 4 record labels still use Payola: study

p2pnet news view Music:- “It’s nice to have some good news to report for a change,” said Wired’s Listening Post in early 2007, going on »»»

The non-profit Future of Music Coalition has been working hard to end payola in an effort to put independent record labels on equal footing with the major labels when it comes to getting radio airplay.  To that end, the organization compiled what it calls the “Rules of Engagement” — “basic guidelines that spell out how independent labels and commercial broadcasters can work together in the future” without the insidious influence of payola.

Today, they announced that progress has been made, after the FCC and the broadcast industry agreed to abide by the FMC’s “Rules.”  According to Jenny Toomey, executive director of the FMC, “Payola has existed since the days of piano rolls and sheet music. What was once an aberration became standard industry practice when radio was consolidated in the last ten years. We¹re encouraged to see the FCC and the broadcast industry work together to eliminate a practice which undermines the meritocracy that should be the public airwaves”

But Vivendi Universal, EMI, Warner Music and Sony BMG, the Big 4 labels, are apparently continuing to bribe people to play their music.

Payola, “still appears to be influencing stations to play music from the world’s four major labels, according to a study released earlier this week by The American Association of Independent Music (A2IM) and the Future of Music Coalition (FMC), which brokered the agreement,” says a new Wired post, continuing:

“CBS Radio, Clear Channel, Entercom Communications and Citadel Broadcasting signed the ‘Rules of Engagement’ document declaring to the FCC that they would pay the government $12.5 million, provide 8,400 half-hour segments of free airtime dedicated to indie labels and local bands and cease the practice of accepting cash and gifts in return for inserting songs into their rotations.”

An A2IM and FMC f survey of indie labels found more than 92% reported “no change in their relationship with commercial radio” after the agreement went into effect, says the story,

Almost half of respondents said payola “remains a determining factor in commercial radio airplay” and approximately one quarter of respondents said they’d been “approached, directly or indirectly, with requests for payola since the signing of the FCC settlement”.

Adds Wired:

“The study does not include any hard data from these stations because that information was embargoed, according to an A2IM spokesman (updated). However, a June 2008 FMC filing with the FCC (.pdf) says playlist data supports indies’ claim that major labels continue to dominate commercial radio: “The data strongly suggests that local radio is still effectively closed to independent or local musicians, calling into question the effectiveness of the consent decrees signed by the four largest radio groups and the Commission in April 2007.”
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Wired – FCC, Broadcasters Agree to Anti-Payola Guidelines, March 5, 2007
Wired
– Study: Payola and Major Labels Still Rule Radio, October 24, 2008


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3 Responses to “Big 4 record labels still use Payola: study”

  1. Jay Says:

    That goes the same for Canadian radio stations. Local stations will not play indie bands. And the top Vancouver radio stations will also not play indie music. They say they are top hits radio stations so will only play the songs that get the most play. Its interesting going to the websites of the radio stations and see what songs they have been playing. The top 10 songs you will hear pretty much once every two hours.

    Even when they have a request hour they still play the same top songs. I mean how many times can you request Katy Perry!!!!!

    Radio stations are always giving away tickets to the big concerts but how about giving away tickets to local venues that are playing local bands, or indie bands from across Canada when they stop in town.

    One example was a few weeks ago I tried to get a song from a Montreal band Creature played on one of the two top vancovuer radio stations The Beat 94.5 and The Crave 95.3 I listened to both stations online for at least 8 hours one sunday night as Creature was playing in Vancouver the following monday and their music is the type that both stations play. I should also mention that is was all request that evening the the djs kept saying to email and phone in requests. I sent at least 6 to each of the 2 stations and I know The Beat recieved one cause the on air dj mentioned that he just received a request then said oh never mind. And I know it was mine cause I just sent it.

    They never played the song. Never mentioned anything about the band coming to Vancouver. Its amazing I even still listen to the radio stations.

    And if anyone is curious the band’s song was Pop Culture
    http://www.myspace.com/creaturecreature
    Check them out and their video for the song.

  2. Reader's Write Says:

    If payola is supposed to be illegal, why can’t the government enforce it?

  3. Reader's Write Says:

    Label vs Indie music on Broadcast vs Web::

    http://arstechnica.com/news.ars/post/20070730-indies-need-royalties-too-webcasters-favor-indie-music-over-major-labels.html

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