RECORDING ARTISTS' GROUPS LAUD PAYOLA PROBE Paul Heine and Bill Holland - Billboard Artists' groups are applauding the ongoing investigation by New York State Attorney General Eliot Spitzer into allegations of payola-like practices in the radio industry. Spitzer's office recently subpoenaed four radio groups, requesting full cooperation with the inquiry.
"We're pleased," says Ann Chaitovitz, director of sound recordings for the American Federation of Television and Radio Artists. "People should be able to hear music on radio based on quality, not on payments."
"The more sunshine on this issue, the better it is for the public and for musicians," says Jenny Toomey, executive director of the indie-oriented Future of Music Coalition.
"If anyone can fix the payola problem without drawing too much blood, it's Attorney General Spitzer," says Jay Rosenthal, counsel for the Recording Artists' Coalition. "Once the broadcast industry realizes how serious he is, positive reform will surely follow."
AFTRA, FMC and RAC have been working together for several years to bring the issue before lawmakers and the Federal Communications Commission, but it is Spitzer's office that has gotten the most traction on the issue.
A source in the FCC's Enforcement Bureau suggests that the agency is in a holding pattern awaiting guidance on the issue when a new FCC chairman comes onboard.
Cooperation Pledged
Clear Channel confirmed Feb. 17 that it has received a subpoena from the attorney general's office and is "cooperating fully with (Spitzer's) investigation into the industry's use of independent promoters and associated allegations of 'pay for play."'
The statement also noted that the company severed ties with independent promoters in April 2003 "to avoid even the appearance of impropriety," and expressed confidence that "the investigation will show the company is in full compliance with the law."
Cox, Entercom and Infinity also have received subpoenas, according to reports. Infinity declined to comment on the report, and officials at Entercom were not immediately available to comment. Cox noted its subpoena in a Feb. 23 Securities and Exchange Commission filing.
Clear Channel, Entercom and Infinity recently have terminated programers over allegations of improper relationships with record companies. The most recent case is Clear Channel's Feb. 17 firing of Sandra Robinson, program director of WGRB (Gospel Radio 1390 AM) Chicago.
Clear Channel e-mailed employees an update Feb. 18 along with a reminder of the company's must-sign, zero-tolerance payola policy.
Big Four
Spitzer's probe of questionable airplay practices was revealed in October, when his office first served subpoenas on the four major record companies.
The attorney general's office asked Universal Music Group, Sony BMG Music Entertainment, EMI Group and Warner Music Group to provide copies of information relating to the labels' hiring of independent promoters in the state to pitch new songs to radio programmers.
The "new payola" issue also has concerned federal lawmakers, but Congress has not yet passed any legislation. Sen. Russ Feingold, D-Wis., introduced a bill last year to probe radio consolidation, including pay-for-play practices. He and Sen. John McCain, R-Ariz., also held several oversight hearings.
The payola probe isn't the first music industry-related investigation by the aggressive New York state attorney general. Last spring, Spitzer announced a $50 million settlement with the major U.S. record companies and music publishers to pay overdue royalties to thousands of current and heritage recording artists. |