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| Broadcasters To Pay Off FCC To End Payola Investigation |
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 According to a story in The New York Times, the FCC has reached a tentative settlement with four of the largest radio broadcasters in the U.S., effectively ending a year-old payola investigation. Times reporter Jeff Leeds writes that Clear Channel, CBS Radio, Entercom Communications, and Ciditel Commmunications will pay $12.5 million to the federal agency. If approved, the settlement will represent the largest one-time fine in FCC history.
Click "read more" below.
In a separate deal negotiated by the American Association of Independent Music, broadcasters have agreed to include 8400 half-hour segments to be devoted to independent artists not associated with the top four record companies. The segments would have to air between 6 a.m. and midnight any day of the week. The agreement would also allow program directors to listen to the lobbying efforts of promoters from smaller labels without fear of reprisal.
FCC Chairman, Kevin J. Martin, hopes the settlement will send a strong message to the radio broadcasting industry. A Clear Channel executive reminded us that though "no violations were found" they were pleased to announce the settlement, close the door on this investigation and move forward.
But industry critics, such as Paul Porter from Industry Ears, a Washington-based media research organization, think the broadcasters got off too easy and 'only a fool would believe' that this is the end of it.
What do you think?
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