FCC payola probe boosts indie music

March 06, 2007 FCC sources said Clear Channel Communications Inc., CBS Radio, Entercom Communications Corp. and Citadel Broadcasting Corp. have agreed to a consent decree that includes a $12.5 million payment to settle payola allegations raised by the commission (HR 1/11). The free airtime would be granted to companies not owned or controlled by Sony BMG Music Entertainment, Warner Music Group, Universal Music Group and EMI Group; do not have a market share larger than 5%; and are represented as independent through Nielsen SoundScan. Payola -- generally defined as radio stations accepting cash or other consideration from record companies in exchange for airplay -- has been around as long as the radio industry and was made illegal following a series of scandals in the late 1950s.

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