MediaBuyerPlanner: Entercom, Clear Channel, CBS Radio and Citadel have agreed to pay a total of $12.5 million to resolve the FCC’s accusations that the broadcasters had accepted gifts, cash and other incentives in exchange for playing certain songs.
If the settlement is approved, it will be the largest fine ever exacted at one time from the FCC, reports The New York Times. “I hope it sends a strong message to the industry that we will be enforcing these rules,” FCC chairman Kevin J. Martin is quoted as saying.
Under a separate arrangement, the broadcasters agreed with the American Association of Independent Music to play more songs from artists who are not with one of the four big record companies. The radio companies agreed to broadcast the equivalent of 8,400 half-hour segments of music, at any time between 6 a.m. and 12 a.m., from such independent artists.
The FCC’s formal investigation into the practice known as payola began after Eliot Spitzer, then the New York attorney general, began an inquiry. Spitzer reached settlements with the Universal Music Group, Sony BMG Music Entertainment, the EMI Group and the Warner Music Group for a total of more than $30 million. CBS Radio and Entercom also settled cases with Spitzer’s office, for a combined $6.25 million.
Related stories:
- FCC May Be Nearing End of Payola Probe
- Entercom Settles with Spitzer for $4.25 Million
- CBS Settles With Spitzer
- Universal Music Pays Largest Payola Settlement to Date
- Clear Channel, CBS, Entercom & Citadel Face FCC Payola Probes
- Radio Reps, FCC Negotiate Payola Settlements
- Entercom First Radio Group Sued By Spitzer
- Payola Goes PrimeTime
- Payola Investigates Nation’s Top Radio Stations
- FCC Opens Federal Payola Investigation
- Sony BMG Makes ‘Payola’ Settlement
