The Federal Communications Commission is being called on to investigate allegations of payola violations. No cash is said to be changing hands, but Sen. Marsha Blackburn (R-TN) says stations offering more airtime for an artist’s songs if the musician performs a free show qualifies as a new twist on pay-to-play. She is asking FCC Chair Brendan Carr to look into the allegations.
“This practice is exploitative and should not be tolerated,” Blackburn writes in her request. “Federal law and FCC rules prohibit radio stations from receiving undisclosed compensation for broadcasting songs, and this principle must extend to free performances for radio stations and networks. Artists should not be extorted into providing free labor in exchange for airplay,” she says.
But some broadcasters see political gamesmanship at play. They note the timing of the request for an FCC investigation came on the same day that she reintroduced the American Music Fairness Act (S.326). That is the bill that would require radio stations to pay a performance royalty for on-air music use.
Blackburn offers few specifics of the alleged violations of payola rules in her letter to Carr, such as the artists or stations she believes are involved. Instead, she sketches out the broad parameters. Blackburn says typically stations “pressure” artists to perform at listener appreciation shows or charitable concert events. She says if they agree, stations reward them with more spins.
Radio programmers might argue that is simply promoting an act coming to town to help drive ticket sales. But Blackburn says that is “exploiting” music acts. And while she makes it clear no one is demanding cash or lavish perks from record labels that would be clearly over the line, Blackburn alleges there are other potential costs.
“There is often an implicit suggestion that declining to perform could result in reduced airplay,” Blackburn says. And while the concerts are “free radio shows,” she says stations receive a financial benefit through ticket sales, sponsorships and other income, while artists and record labels frequently absorb the expenses.
“Artists in the industry have told me that it is not unusual for them to perform anywhere from 10 to 50 such shows in any given year,” Blackburn says. She tells the FCC that the arrangement applies to essentially all artists, regardless of their level of success. “Those just starting out in their career will often perform more, while those that have had more success will have to perform fewer, but they will still be expected to do them,” Blackburn says.
Under federal law, stations are required to disclose to their listeners if they receive money, services or other valuable consideration in exchange for something. Failure to disclose such a “payola” payment is punishable by a fine of up to $10,000 or a year in prison. But the Department of Justice has in recent years left enforcement to the FCC, which has also adopted that requirement in its sponsorship identification rules. The last time the FCC took an enforcement action for violations of those rules was in 2014, when $244,000 in fines were doled out to three different broadcasters.
