The FCC’s ongoing probe of payola in terrestrial radio has found an unlikely benefactor: independent artists! In an agreement peripheral to a $12.5M settlement in the FCC’s case against the Big Four (Clear Channel, CBS, Entercom, and Citadel), the station groups have promised air time to your favorite bands. Via Reuters:
Independent recording artists will get a clearer shot at the airwaves under a deal cut by the big radio station groups and indie labels as part of the federal payola investigation.…
While it is not part of the consent decree, a separate voluntary side deal between the station groups and the American Association of Independent Music (A2IM) would set aside 8,400 half-hour blocks of time for independent music.
The free airtime would be granted to companies not owned or controlled by Sony BMG Music Entertainment, Warner Music Group, Universal Music Group and EMI Group; do not have a market share larger than 5%; and are represented as independent through sales tracking firm Nielsen SoundScan.
If you’re wondering why the FCC didn’t just write the indie-friendly arrangement directly into the settlement agreement, you think too much. But to answer, it’s ’cause the FCC was “afraid they would be accused of overstepping their legal authority.” So it’s a good faith agreement with the station groups, and we all know Clear Channel’s word is bond. But most importantly, you can finally justify listening to Z100.
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If any of these shit Clear Channel stations actually start playing music I like, my brain will simply stop working in show and awe. Of course, it’ll never happen. Good faith my ass.
i’ve been hunting for official details on this all day… is this a one time 8400 allotment? annual? spread out over all 8 million stations?
i feel like the ‘over stepping their legal authority’ fear of the FCC is valid. If it didn’t constitute a government taking, it would at least expose them to litigation. Now it’s a basic contract between A2IM and the big boys (maybe?!)
it was pointed out somewhere (cannot remember where) that Clear Channel’s ace in the hole is the fact that these allocations are in 1/2 hour blocks, aka, The New Local Indie Music Show – 4:30-5am Every Tuesday on THE BUZZ.
No!! I don’t want to share my music with anybody who likes Nickelback. I don’t want to hear people trying to whistle Andrew Bird songs when I’m walking down the street. Outrageous.
Actually, the scariest loophole in this deal is that Nickelback are on an indepedent label (Roadrunner).
Interesting timing as a potential deathblow to Internet Radio was released by the Copyright Royalty Board last Friday.
A Royalty schedule was released that would bankrupt all but the biggest (& richest) broadcasters. The deal appears to be to the liking of one group, RIAA-tied SoundExchange. Find much more info here: http://kurthanson.com/archive/news/030507/index.shtml
And sadly all these 1/2 hour slots will be during the early morning when no one’s listening.
http://www.sendspace.com/file/hefxrm
new interesting band to check out.
CD is called Godspeed Uxorious Kakistocracy and it pretty much lives up to the name : )
This is old news, but relevant none-the-less. I’m with that one dude – if I hear music that I like on any Clear Channel stations then I might cease to exist.
The terms of the deal are between 6am and midnight.
The internet radio comment is a bit over stated as well. I work at a LP indie station, and we’ll easily be able to afford the licensing …
I got hopelessly bewildered yesterday hearing Regina Spektor on the radio. I can’t keep track of these things: is she big now? Anyway, I agree with Ron, and am slightly horrified by Lee’s comment.
Internet radio comment is overstated? Radio Paradise will have to shut down and they ain’t tiny.
Dan, have you done the math on how much those new Internet radio fees will cost? It is not an overstatement. Unless you’re already raking in a lot of support from your listeners, I doubt you’ll be able to afford to stay on the air for long.
SomaFM, a station I listen to and support, which is not that big, could be paying over a $1 million in royalties by 2010 and that doesn’t include the royalty fees paid to BMI, ASCAP, etc. Figure the larger outfits like Yahoo and AOL will be paying at least 10 times that amount and most, if not all Internet radio stations will cease to exist if these rate recommendations go through.