AMERICANS FOR RADIO DIVERSITY
news and info regarding the public's airwaves
May 29, 2001
Payments Linked to Airplay
source: LA Times
For 40 years, federal law has prohibited broadcasters from accepting money or anything of value in exchange for playing songs on the radio without disclosing the practice to listeners. But internal documents obtained by the Los Angeles Times indicate that several independent promoters keep detailed logs--called "banks"--listing the date a station airs a song followed by a dollar amount collected from the artist's label. The stations that add the most songs over the course of a year build the biggest banks and consequently earn the largest fees....The documents show that each of the five major record companies--Vivendi Universal, Sony, Bertelsmann, AOL Time Warner and EMI Group--paid fees to an independent promoter associated with a Portland, Ore., radio station that played songs produced by their labels. Officials for these record companies declined to be interviewed.
posted on May 29, 2001 07:14 PM