Radio bigs’ ‘payola’ settlement...Real Change, or Just Another Smoke Screen?

Today, in an article entitled "Radio bigs’ ‘payola’ punishment may help local music make waves," Jesse Noyes, a reporter for the Boston Herald Business Reporter, reported on the details of the payola settlement between the FCC and the four conglomerate radio ownership groups who were supposedly, "Looking to settle 'payola' charges with the FCC, Clear Channel Communications Inc., Citadel Broadcasting, Entercom Communications and CBS Radio - all of which have stations in Massachusetts - agreed to pay $12.5 million and to boost the amount of local and independent music they play."

Some main points of the settlement reported by the Associated Press included a 'side deal' with the American Association of Independent Music that "the broadcasters will offer 8,400 half-hour blocks of free airtime for independent artists," citing unnamed FCC sources. Noyes goes on to say that "under the new agreement, stations would have to set aside time for artists not signed to the largest four record labels in the country."

While there are some that are optimistic over this new development, there is still a lot of skepticism going on, especially, with true independent record labels who believe this is to good to be true. Although the settlement defines independent music, as music not signed to the "largest four record labels in the country," it does not address the issue of indirect connection, which has and does allow access to radio airplay. Even the smallest social connection, or previous employment with a major label is enough to bring down market-entry barriers.

People do not realize how easy it is for "music industry veterans" aka. major label connectees to start a business and operate as an "independent," while enjoying the benefits of free market access compliments of their former engagement, and still very much alive association, with the majors. It's the same snake only dressed up differently. The real proof will be in how much true independent music actually gets radio airplay, if any, in the future vs. how many "industry veterans," and posers actually eat up the dedicated 8400 half hour slots. Time will surely tell.

Legend Heart Records Issues Open Letter In Response To Free Press, Future of Music: Stop The Confusion, Stop The Discrimination

FOR IMMEDIATE RELEASE PORT ORCHARD, WA / PR FREE / Feb 02 2007 --

This is in response to a press release dated January 24, issued by media reform activists at Free Press, Future of Music, and Industry Ears entitled "Slap on the Wrist Won't Stop Payola," in which they expressed grave concern over lenient terms reportedly contained in a potential payola settlement between the FCC, and the four major radio ownership groups. Most of the items proposed by these media activists to the FCC made sense, for all intents and purposes. However, two items stand out as potentially dangerous loopholes, first, that "independent" music should be included in "music testing pools," and second, that new music testing should include titles from labels and artists that have met unspecified “airplay criteria.”

First of all, these items are unacceptable because radio has proven to be untrustworthy and prone to major label favoritism, corruption, and payola. Subjecting labels and artists to music testing pools, or vague airplay criterion, would only create a vacuum in the market, and serve as another loophole for radio. It would also preserve the oligopolies in both recording and broadcasting industries. True Independent music has a right to equally share the public airwaves with major labels and their affiliates, including labels with major label "management" agreements in place. These media reform organizations are on the right track, but they failed, or forgot, to include true independent music in their proposal to the FCC. They also failed, or forgot, to distinguish the difference between true independent record labels, and labels that claim to be independent, but are in fact, not. The people must know the truth. Record labels with an affiliation or connection to a major label, are not truly independent.

Even the smallest connection to a major label brings down market entry barriers. A true independent record label has a right to open for business, create new and innovative music products, and bring those products to the commercial radio marketplace without having to submit to a major label, without having to submit to corruptible and untrustworthy "music testing pools," and without having to meet vague airplay criterion that would likely be lopsided in favor of major labels. No, this is definitely not the answer. Discrimination against true independent music would surely continue.

Section 2 (a) of the Small Business Act of 1958 states, “The essence of the American economic system of private enterprise is free competition. Only through full and free competition can free markets, free entry into business, and opportunities for the expression and growth of personal initiative and individual judgment be assured. The preservation and expansion of such competition is basic not only to the economic well-being but to the security of this Nation.”

Legend Heart Records is a true independent record label based in Port Orchard, WA. The company has been in operation since 2003.

More information is available at:http://www.LegendHeart.com.

Source link to: “Slap on the Wrist Won’t Stop Payola”:http://www.commondreams.org/news2007/0124-02.htm