Daily Hip-Hop News:
Anti-Payola Settlement Gives Indie Artists Radio Time
Wednesday – March 7, 2007 by Jolene “foxxylady” PetipasLocal artists and independent record labels will be getting more airplay in the near future all thanks in part to an anti-payola settlement between the government and four major broadcast companies.  

According to the Associated Press, Clear Channel Communications, CBS Radio, Entercom Communications and Citadel Broadcasting, which together own more than 1,500 radio stations, agreed to pay $12.5 million in fines to end an investigation into payola and put an end to the practice.

As part of the agreement, all four broadcasters will provide 8,400 half-hour segments of free airtime to independent record labels and local artists. The free airtime would be granted to companies not owned or controlled by the nation’s four dominant music labels – Sony BMG Music Entertainment, Warner Music Group, Universal Music Group and EMI Group.

All the afomentioned major labels have been involved in the payola scandals which they resolved with multi-million settlements in the past two years.

In addition to airplay, the broadcasters and the independent labels have also negotiated a set of “rules of engagement” that will guide how record company representatives and radio programmers interact. The new “rules of engagement” are aimed at requiring equal access to radio music programmers for all record companies as well as transparency in their dealings.

“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, told the AP. “Without a doubt, nothing else comes close.”