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Submits Payola Education Guide and Reply Comments on Localism to the FCC
WASHINGTON, DC – Future of Music Coalition — whose 2002 examination of radio station ownership consolidation Radio Deregulation: Has It Served Citizens and Musicians? has been cited as essential evidence by FCC Commissioners and the Third Circuit Court of Appeals — has released a new publication that provides an overview of payola in the radio industry. Released in collaboration with the American Association of Independent Music (A2IM), the Payola Education Guide makes the case that little has changed since the FCC enacted voluntary agreements between radio groups and major labels in April 2007.
The payola settlements of 2007 provided an excellent starting point for radio to make positive changes that would reflect a new commitment to localism and diversity on the public airwaves. Although the voluntary agreements and the set asides for independent artists acknowledged the problem, recent evidence casts serious doubts on broadcasters’ commitment to placing local and independent music in regular rotation."In an era where information and entertainment have become increasingly globalized, it's all the more important that local broadcasters who operate within communities on the public airwaves consider local interests," said FMC Executive Director Ann Chaitovitz. "Local and independent musicians are being foreclosed from radio, to the detriment of communities across the country."
The lack of transparency in the song selection process at commercial radio stations leaves the door open for payola. FMC’s Payola Education Guide offers a historical summary of this pernicious practice, explaining how payola distorts everything from industry charts to album sales. Written in clear and concise language, the guide describes the reasons behind the FCC's 2007 voluntary agreements and independent set-aside, but points out that more needs to be done to ensure that local and independent artists have access to the public airwaves.
In reply comments filed on June 11 in the FCC's ongoing localism proceedings, FMC noted that independent record labels release more than 80 percent of the music in the domestic marketplace and are collectively responsible for roughly 30 percent market share. Yet for the majority of these independent artists and labels, the door to commercial radio play remains closed. FMC conducted a quantitative analysis of playlist data, and found that songs released by the four major labels continue to dominate the commercial radio charts. Due to the proprietary nature of the playlist data FMC cannot circulate this report at this time, however negotiations to enable the release of this report are underway.In its reply comments, FMC highlights concrete ways for stations to make localism a priority, and urges the FCC to take definite steps to collect playlist data so it can track and analyze playlists in order to ensure that stations fulfill their public interest obligations. For the past four years, FMC has articulated a four-part "Fixing Radio" agenda. This agenda is focused on specific, tangible and commonsense policies that will greatly enhance the role that terrestrial radio can and should play in our society and culture. The four parts of this agenda are:
- Prevent further radio consolidation
- Expand and protect community radio
- End structural payola
- Ensure the transition to HD radio benefits musicians and the public
FMC believes that if the FCC and commercial radio stations embraced these goals, terrestrial broadcasters would experience a much-needed revitalization, to the benefit of communities and the stations’ bottom line.
Links:
Change That Tune: A Payola Education Guide for Musicians and Citizens
FMC Reply comments filed in localism proceeding
About the Future of Music Coalition
Future of Music Coalition is a national non-profit education, research and advocacy organization that seeks a bright future for creators and listeners. FMC works towards this goal through continuous interaction with its primary constituency — musicians — and in collaboration with other creator/public interest groups.
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