Shocked, Shocked at Payola

"It costs a record company about $250,000 just to launch a single on rock radio today. That doesn't guarantee success; it just gives the single access to the airwaves. If the song catches on and eventually crosses over to the mainstream Top-40 format, indie costs balloon to more than $1 million per song." Salon.com has a pair of articles on payola today: one on the widening scandal and one specifically on a curious Clear Channel case. For context, here's our latest payola story, or if you want the background on why the labels hate the promoters but can't shake the habit, my writeup from a year ago. (If you want some beach reading on this topic, go check out "Hit Men.")

Comments

Re:A Bad Thing?

[Software]

Music and Radio are businesses, not god-given rights

Actually, radio is a government-given right (or license, to be more precise). In the USA, airwaves are public property, licensed to broadcasters for the public good. That's the theory, anyway, though the practice is somewhat different.

Payola distorts the system. It makes it harder for the public to hear what it wants to hear. Payola is also illegal; that's helps explain why people "jump to the conclusion" that it's a bad thing. Incentives for distribution of music (sales incentives, advertising deals with music stores, etc.) are not illegal, because music sales aren't regulated in the same way.

#include IANAL.h

Missing Link for Online Tonight

[Alien54]

Link - Online Tonight

Re:Satellite radio

[trix_e]

well if the proof is in the pudding, then your guess is wrong. One of the huge downsides of payola from a listeners standpoing is the lack of choice and diversity.

The choice and diversity on XM is amazing, and in fact they have one channel "Unsigned" that is specifically for bands that aren't with major labels. All bands have to do is mail in a CD, and there's a good chance that if it doesn't suck, it'll get played. I listen to that channel all the time, and it's amazing the quality of the bands and music on there... I've ordered several CDs from bands websites based on things I've heard there. (as an aside, the channel is run by Pat Dinizio formerly of Smithereens fame)

I don't know about all of the channels, especially the ones that play more "Top 40" oriented music, and how they determine their playlists, but I do know that the choice is remarkable.

I agree that there is the potential down the road for these services, should they displace traditional radio, to have a duopoly (or monopoly should they merge or one die) and that could be very bad, but at this point I think Satellite Radio is the cure for payola, not another problem.