Payola: The criminal conspiracy against music

This is something music-industry-insiders and musicians are more or less aware of but the general public and average radio listener not:

The music you listen to on the radio was not chosen by the DJ because it is good. It was played because it was paid for by a record company

Paying for music to get played is highly illegal...and yet, not a song on commercial radio gets played without first paying ten-thousands or even hundreds-of-thousands of dollars to the radio station.

What Payola is:

Payola, in the American music industry, is the illegal practice of payment or other inducement by record companies for the broadcast of recordings on music radio, in which the song is presented as being part of the normal day's broadcast. Under US law, 47 U.S.C. § 317, a radio station can play a specific song in exchange for money, but this must be disclosed on the air as being sponsored airtime, and that play of the song should not be counted as a "regular airplay." The term has come to refer to any secret payment made to cast a product in a positive light (such as obtaining positive reviews). Some radio stations report spins of the newest and most popular songs to industry publications. The number of times the songs are played can influence the perceived popularity of a song.

After a number of scandals in the 1950s, new laws and restrictions were imposed and these are supposed to protect us from this practice.

Unfortunately, loopholes were quickly found and the criminal practice never ended...it only got stronger:

Third-party Loophole

A different form of payola has been used by the record industry through the loophole of being able to pay a third party or independent record promoters ("indies"; not to be confused with independent record labels), who will then go and "promote" those songs to radio stations. Offering the radio stations "promotion payments," the independents get the songs that their clients, record companies, want on the playlists of radio stations around the country. This newer type of payola was an attempt to sidestep FCC regulations.

Since the independent intermediaries were the ones actually paying the stations, it was thought that their inducements did not fall under the "payola" rules, so a radio station need not report them as paid promotions.

Among musicians, it is common knowledge that in order to get into the "playlist" or "rotation" of a commercial radio in any city, you need at least 20 000 Dollars.

It is a popular misconception that radio stations "choose" whats "hot" in the charts and play that. Instead, record companies, with their superiour budgets, choose what radio stations play and thats how songs become "hot" in the first place.

The focus of record companies is mostly not actually a long-term relationship with an artist and a build-up of recognition and fans over the years, but "one-hit-wonders" that make big cash quickly. For this purpose certain "hit-formulas", that have been used since decades, are created. Then, the radio stations are paid, and then a song becomes a "hit".

This is why 80% of the music we deem popular and "hot" doesnt actually sound creative or inspiring but formulaic and dull. Music, the realm of artistic and creative people has been hijacked by cynical and criminal "businessmen"

Concern about contemporary forms of payola prompted an investigation during which the FCC established firmly that the "loophole" was still a violation of the law

Related Articles of Interest:

Payola: Another brick in the Wall

the L.A. Times uncovered documents showing that record labels are still buying radio airplay

Radio Payoffs are described as Sony Settles

To disguise a payoff to a radio programmer at KHTS in San Diego, Epic Records called a flat-screen television a "contest giveaway." Epic, part of Sony BMG Music Entertainment, used the same gambit in delivering a laptop computer to the program director of WRHT in Greenville, N.C. - who also received PlayStation 2 games and an out-of-town trip with his girlfriend.

The only hope we have in combating the dominance of the music industry is through the internet...which gives independent musicians the chance to be heard without being slave to the system.

Untill we can get this done and actually have real music again I will let you in on a little secret that helps me keep my sanity.

It is a local community supported radio station here in St. Louis that plays a variety of music, usually in two hour blocks. Anything from jazz,blues,reggae,hiphop,rockabilly,bluegrass,etc.
I usually listen online and have been exposed to alot of great music that I never would have heard on the commercial radio stations or even on satellite radio.

You can even listen to past shows, meaning if you don't like what you hear live
, then you can listen to a past show of whatever music you do like.
here
is a link. Enjoy!!!

Thanks. I do listen to non-commercial radio and college radio and some internet-radio. Anything that is free of this BS.

I´ll give yours a listen.

[edit on 8-11-2008 by Skyfloating]

How Radio Really Works

More selected quotes from the chosen articles:

We're living in the era where bands are prepackaged for our convenience, and then the packaging itself is repackaged as a serial documercial and sandwiched between paid ads. The kids whose billions pay for this machine are not only fully aware it's a sham, they embrace the cynicism and still manage to enjoy the show.

But although you can hear "Another Brick in the Wall, Part Two" played on L.A. oldie stations today, at the time, you wouldn't have heard it on any station in the city. Total blackout. The record labels used a network (creatively called The Network) through which they exerted control over which songs got on the air.

Note that just coming out and admitting a spin was bought is perfectly legal: if that Limp Bizkit play was paid for, just say so and your station is home-free.

Break the law and you might be fined up to $10,000. Payola is a misdemeanor. Theoretically, someone might spend up to a year in jail, but according to Hit Men , published in 1990, nobody has ever spent a single day behind bars.

When I was in college I was a DJ on the campus radio station. We reported to the CMJ (College Music Journal, akin to Billboard) and during most hours we had lots of major-label material that we HAD to play. "Heavy rotation" selections had to be played at certain frequent rates, then there were other levels of rotation that I have forgotten over the years.

Since we were a "college" station, heavy rotation consisted of things that the major labels' marketing people considered to be what college students wanted to hear. As in...the music was selected by businessmen and then shoved down the throats of the students. Probably exactly the same thing that happens at larger stations with "pop" music.

Needless to say, as a punk/hardcore afficionado, I was not thrilled when I had to fill in for another DJ during the hours when we had to play heavy rotation. So I mainly did my shows at night and had a WONDERFUL time!

You can see that by this method they are brainwashing the general population. Music is hugely influential, and much information is subconsciously transfered through the medium of sound. That's why they have you sing Jesus songs at church and America songs at school. The information in the lyrics become like hypnotic suggestions as your brain is stimulated by the music to feel good. This is similar to suggestion using humor. By playing mindless uncreative music, the listener of this music will also become mindless and uncreative. Think about it: how many people who listen mainly to mainstream music actually have an understanding and appreciation of music? They're just in it because it's the mainstream thing to do!

I do know for a fact Fred Durst admitted Limp Bizkits record company paid to have 'Faith' played on high profile radio stations.

Awesome thread!

I know that this rule applies heavily in american commercial radio, there are a few stations here that set aside short times for "local groups", but other than that, it's all what's "hot."

This also heavily impacts kids today, because most kids will simply listen to the radio, and take a liking to just that (whatever is on the radio -- note that I say most.) And unfortunately, some of those tracks on the radio may not have as much musical merrit (I believe anything can be music, but what merrit it has, that's different), as tracks that aren't on the radio.

It's a shame really, because I've found that children, especially middle school kids, ages 12-14, lack musical appreciation, or at least, do not actually listen to music for what it really is. They listen for the "beats", the "sad" or "outlandish" lyrics, or the "head banging" sounds. But music is so much more than that as we know.

It's another form of media propeganda IMO, and sadly...it's worked -- and in fact, it is sick.

reply to post by therainmaker


Thats odd because I thought college-radio was free from this. I didnt know the octoposes tentacles reached down that far.

Originally posted by Skyfloating
reply to post by therainmaker

 

Thats odd because I thought college-radio was free from this. I didnt know the octoposes tentacles reached down that far.

Unfortunately no, not the larger-coverage ones at least. My station was one of the more popular Boston-area college stations, and I know for a fact that at least one other area station reported to CMJ...and anyone who reports their playlists to the CMJ had to go along with the major labels' force-feeding program. There was no money exchanging hands at the station level, however we would receive promotional items like a doctor receives things from drug reps. For example, cases and cases of pens with the logo of a new "independent-looking" major label subsidiary on them, cheap sunglasses and knick-knacks, etc. I do not mean parts of bands' press kits, I mean completely free, separately-shipped packages from the labels. Not the distro, not the band, but the labels.

On the other hand,

I'm a musician and I'm currently on tour on several countries.
Everything the OP said is true, and it's extremely difficult to get radio plays if you don't have the money, and unless you're a millionaire or a big label company, you can't do an effective campaign.

But on the other hand, Internet is a major helper of indie bands/artists, until it gets controlled by big companies of course (a question of time from my point of view). Besides, I think we're witnessing the end of an era regarding music industry, with the end of CDs as the main music format. Labels are in big trouble since they can't effectively adapt themselves to free music. And since they have a nasty vicious circle with major radio stations, they're next.
They're desperately trying to change strategies, but it amazes me how they are miserably failing.

Even today as a new artist you have to think twice before signing to a major label, I knew lots of people that got screwed badly since they make your videos/albums based on a general budget they have. Of course this budget goes to major figures, and you get stuck on a three year contract that forbids you to make anything on your own waiting for them to put money on you, which may never occur.

I'd be interested to know if music piracy has curtailed or affected this practice at all. How much money can labels be throwing around when a hefty percentage of people who used to pay for their music, now get it for free?

whats awesome is when the labels spend all this money on payola and then the album still doesn't sell. THis happens a lot in the hip hop scene. just cause your favorite rapper is all over the radio doesn't mean he's actually making any money.

THese record execs really need to figure out how to market their product for the 21 century. or at least they need to get some notion of a clue. the paris hilton album anybody? The idiots over at warner actually funded that album with their own resources (ie... personal monies) thinking that the population would actually stoop that low to buy the paris hilton album. the album sold I think 15K records maybe a little more. complete failure. I wonder why.

And the result is, I no longer listen to music radio. No one I know with any taste does, either. Let the idiot masses consume the garbage that the entertainment and other industries pump out. Those industries and their consumers are becoming more and more irrelevant to the real cultures of quality which are developing all the time.

Originally posted by Resinveins
I'd be interested to know if music piracy has curtailed or affected this practice at all. How much money can labels be throwing around when a hefty percentage of people who used to pay for their music, now get it for free?

It's just that they aren't adapting to this new scenario. They're still selling well with major figures, that's why you hardly listen to "different" music on the radio.

I have personally seen how a major recording label went from a luxurious floor on an exclusive building to a modest office on a not-so-expensive building, and it's still cutting staff. They have to change their entire business to prevail, and they don't know how to approach it, so they keep their old habits exclusively with big numbers.

Well, this pretty much explains why metal/hardcore/punk are put underground. Most of the lyrics are about everything that the government doesn't want you to know about. And seriously, when is the last time we really had a rock band that was rebellious and actually stood for something? That is the very nature of rock music. I believe Guns N Roses was the last band of that kind...

reply to post by edgecrusher2199


Off the top of my head Rage Against The Machine... and System Of A Down.

well as somebody who oversees the budgets for the recording process I can tell you that the labels have a serious cash flow problem. not the little labels the big 4. THe recording budget i used to work with for having a major producer produce maybe 3-6 songs for a major artists forthcoming album used to be about 75K in 2005 now they (A&R at the labels and the people in admin, BA etc...) now give us about 35k to work with max to accomplish the same. and each quarter the amount gets smaller.

This cost covers everything (engineers, asst. engineers, studio rental, equipment rental, hard drive rentals, transportation, sometimes lodging, petty cash etc...) except the producers (who usually doubles as a songwriter/arranger and engineer for the album) fee per song. which is usually broken up into three payments that are doled out over time. usually 25% up front, another 25% when satisfactory (Label accepted final cuts of the track) data files are handed over to the possession of the record label. and the other 50% after the album goes into distribution. getting that last 75% is the trick for associate managers, if you want to make it. I've had major labels dick around getting 3k in back end pay to clients i work with. sometimes it takes them 12 months to pay up. you should hear the excuses they give too when they can't pay.

Points on the album sales etc, are a different story and those are issued after the end of each quarter. those usually show up on time. but occasionally you have threaten to sue the label when they haven't paid your client for over a year or two for royalties and balances owed etc...

THe labels will often will fire a poorly performing or simply a hot s A&R exec who has had a poor year but plenty of successes in the past with the label simply to free up money to fund a new artist or project they hope will be their next cash cow. usually this firing is in vain as the new project either doesn't pan out or is a sales failure.

the big thing now is cutting major albums inside the producers home studios (which are nowhere near as nice usually as their lockouts, if they have one, or a full on studio like ocean way or hensen) to cut the cost out in the bid with the label for the project in terms of studio rental, most equipment rental etc...

seb I know what you mean. when impala won their lawsuit against sony BMG a few years ago in european court, effectively annuling their merger. people over at warner bros/ maverick, electra and atlantic were hearing all sorts of rumors like they were going to get rid of their west cost operations all together. no more 3400 warner building just the 550 madison building, or are they 5th avenue ave of the americas? I forget. anyways the people on the west coast were almost told to get ready to move to the east coast or get let go, and even if you do move don't expect to have a job when you get there. this was because warner wasn't doing as good as they wished and were going to merger with emi to stay afloat. the ruling in the european courts threw cold water on that idea for warner and emi.

instead to make ends meet they shut down madonnas label maverick records and got rid of everybody their. they say they just reabsorbed it back into warners but they fired everybody except kevin and his assistant patrick. kevin is old school with warner and tight with perry and craig and jeff the sr vps of a&R over there. glad they kept kevin though although he is sorta shy on pulling the trigger with new projects.

as far as these older execs and chairmen, presidents, vp's, coo go at the major labels they suffer from old man who can\t program the clock on their vcr syndrome. if these same people can't program their vcrs than how on earth are they going to be able to possibly understand the zietgest of the internet and how to market effectively on this new medium? they can't and it's shows.

[edit on 9-11-2008 by BASSPLYR]

[edit on 9-11-2008 by BASSPLYR]

[edit on 9-11-2008 by BASSPLYR]

reply to post by BASSPLYR


I couldn't have put it better myself. And the last thing you said is the same reasoning I use to understand how multibillion dollar companies are going to the sink. Old men with even older ideas, this is a transition time between the "old" music industry and the "new" music industry whatever it turn out to be.
The sad part is as you said, musicians going unemployed, people with great ideas or music forced to do anything else (a friend of mine ended up serving tables for instance).

What I really want to know is what will happen when the Big 4 stop payoling altogether, as I see this can't go on for too long the way they're heading. Would that be the end of mainstream radio too? Or maybe they'll just keep doing what they're doing now, paying for big numbers and little else... can that last forever, or will it get everyone tired at some point?

reply to post by BASSPLYR


You seem to have a very good knowledge of the music industry. What are your thoughts on underground music, particularly metal and why it can't seem to break out of the underground? Is it because metal has a rebellious nature?