FEINGOLD INTRODUCES PAYOLA BILL Bill Holland – Billboard A leading lawmaker long critical of radio consolidation introduced a bill Friday that seeks to close loopholes on payola-like practices and stop alleged “muscling” practices by broadcast-venue owners from forcing performers to play for reduced fees or for free.
Sen. Russ Feingold, D-Wisc., who introduced a broader radio consolidation bill in the last Congress, says he narrowed the focus of the “Radio and Concert Disclosure and Competition Act of 2005,” after examining evidence unearthed in New York State attorney general Eliot Spitzer's July 2005 $10 million settlement with Sony BMG.
Feingold says that in addition to payola, “there are other abuses of power over airplay decisions by radio stations and their corporate parents, especially when the conglomerate also owns concert promoters and venues. This cross-ownership sets up a situation where the same corporation that is negotiating a contract for an artist to perform at its concert also controls the lifeblood of that artist's success - airplay of his or her songs.
“The result,” he added, “can be intense pressure on artists to play radio station-promoted shows and, often, to do so for less than the normal rate.”
Moreover, he adds, “for any artist who deigns to refuse the direct or implied extortion from the conglomerate, as Don Henley's courageous testimony in a 2003 Commerce Committee hearing clearly explained, there is the risk of retaliation.”
The bill would simultaneously strengthen the FCC's ability to prove violations and punish offenders, close the loophole allowing indirect payola, and prevent radio-venue cross-ownership from hindering fair competition. It will also offer greater transparency through disclosure of the payments to radio stations from artists, labels, promoters and others who may have an interest in improperly influencing airplay decisions
It also requires radio stations to disclose all receipts of payments or consideration that could be used as a front for payola along with a list of the songs played every month, broken down by label and artist.
Artists' groups praised the introduction of the bill.
"Payola has always been a big problem for recording artists and it has been exasperated by the horizontal and vertical consolidation of the media,” says Randall Himes, assistant national Executive Director of Sound Recordings for the American Federation of Television & Radio Artists. “Updating the law in this area is long overdue."
In addition to AFTRA, supporters include the American Association of Independent Music/A2IM; the American Federation of Musicians, Consumers Union; Free Press; the Future of Music Coalition; the National Academy of Recording Arts and Sciences, Inc.; and the Recording Artists' Coalition. |