FCC settlement in "payola scandals" to include 4,200 hours of free airtime to indie labels/artists

According to a recent article, it seems the four major broadcasters (Clear Channel Communications Inc., CBS Radio, Entercom Communications Corp. and Citadel Broadcasting Corp) have agreed to anti-payola settlements, which sources at the FCC state will total $12.5 million paid to the federal government, but of more interest, 8,400 half-hour segments of free airtime will be provided to independent labels and their artists, local musicians, and notably will not apply to any companies owned by the nation's four dominant music labels -- Sony BMG Music Entertainment, Warner Music Group, Universal Music Group and EMI Group.

Payola, a basic form of bribery in the broadcasting industry where cash or other "considerations" are given to radio stations or specifically DJ's in exchange for playing specific records, was made illegal in the late 1950's but can be very difficult to trace or prove. Often, the bribes come in the form of prizes originally intended for listeners, but instead stay with station employees. New regulations hope to curb that by requiring tighter records, including a database of prizes, be kept to ensure all money, prizes, etc. are properly accounted for.

Another aspect of the deal will be the creation of a "rules of engagement", to be negotiated by the broadcasters and independent labels. These will guide interactions between all music labels (independent and major) and radio stations, to ensure that dealings between parties are fair on all accounts, without further payola. Specific dates and time frames should be announced by the FCC once the settlement is finalized.