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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.")

148 of 364 comments (clear)

  1. Come on and ride the Train by Kasmiur · · Score: 2

    Customers getting screwed by the RIAA whos getting screwed by Clean channel

    WOO WOOO

    --
    -THIS SPACE FOR RENT!
    1. Re:Come on and ride the Train by gorilla · · Score: 3, Insightful

      It's the bands who are being screwed, not the RIAA. Any promotional costs are charged back to the artists, against their royalties.

  2. Beach? by rizzo · · Score: 4, Funny

    What is this "beach" you speak of? It sounds suspiciously like something that involves "fresh air" and "natural light".

    --

    "More organs means more human." - Zim

  3. Bah! by dattaway · · Score: 2

    Shouldn't it be the other way around? I thought radios had to pay the RIAA for each single played. Who's screwing who? Or is this some cartel keeping out the little players?

    1. Re:Bah! by Kamel+Jockey · · Score: 2

      Shouldn't it be the other way around?

      This is much like the relationship that TV networks have with local affiliates. The networks pay the affliates to broadcast their shows, even though its the network that creates and produces them.

      One could make the argument that it should be the other way around, but I'm guessing that in the case of TV at least, the networks need the local affiliates more than the local affiliates need the networks (possibly because the networks don't own their own broadcast facilities?), so as a result, the payola flows in the unexpected direction.

      --
      In case of fire, do not use elevator. Use water!
    2. Re:Bah! by Turing+Machine · · Score: 2, Informative

      I thought radios had to pay the RIAA for each single played.

      Nope. They pay the composers through ASCAP, BMI, and SESAC. The artists and their record companies (RIAA, in other words) don't get anything for radio airplay (unless they also happen to be the composers, of course).

      The controversy over the recent webcasting fees mainly lies in that the Copyright Office ruling requires that the webcasters pay BOTH the composers AND the artists, so the total fee is a lot more than for traditional radio. If you're the both the singer and the songwriter (or if you're a record company who's screwed the copyrights out of the singer/songwriter) you get paid twice. Sweet gig if you can get it.

    3. Re:Bah! by Zeinfeld · · Score: 3, Insightful
      Shouldn't it be the other way around? I thought radios had to pay the RIAA for each single played. Who's screwing who? Or is this some cartel keeping out the little players?

      This is true, the radio companies do pay for paying the music and the labels pay to get it played. The reason for this is that it is two different groups paying and being paid.

      A long time ago the recording industry agreed to separate mechanical reproduction rights from performance rights. When a CD is made it is governed by the mechanical rights. A radio or Internet broadcast is a performance right. The labels take 100% of the mechanical rights and the composers get 100% of the performance rights. Doing the split this way means that the composers don't have to trust the labels to honestly report their sales.

      That is why the recording industry does not want Internet radio, p2P or the rest, they don't own the rights. The real point of the Hollings bill (what is it called this week? DALEK?) is that once the vehicle is on its way an ammendment will be slipped in behind closed doors to steal the performance rights from the composers.

      This situation is a bit like the situation in Israel, Shaorn would like peace but he cannot resist the temptation to appropriate the Palestinian's property for settlements. Then when the inevitable attrocity happens they go asking for sympathy. In the same way the RIAA is scared stiff of the threat of piracy but it just can't resist the temptation to loot, just as they could not resist the temptation to steal artist's recovered rights in the DMCA. But when Napster or Bearshare comes along the threat to private property is soooo desperate that immediate legislation is required to force all PCs to be tricked up with DRM within 24 hours.

      Ultimately I think we will see radio displaced by Internet Radio and Satelite Radio. The cost advantages of addressing a larger market are devastating. The real problems are lack of the right standards for distribution and the lack of appropriate hardware. I don't want to tie up my PC with Internet radio, nor do I want to have to lug a PC with me just for radio. I want my Internet radio device to connect to my home network via WiFi and play any station I might want to listen to, or play from my (ripped) CD collection on the main server.

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
    4. Re:Bah! by jedidiah · · Score: 2

      >>Then when the inevitable attrocity happens

      Armed resistance doesn't require targeting civilians first. Resistance doesn't even require violence. "Atrocities" only demonstrate that the perpetrators are too politically immature to be trusted.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    5. Re:Bah! by Zeinfeld · · Score: 2
      Armed resistance doesn't require targeting civilians first. Resistance doesn't even require violence. "Atrocities" only demonstrate that the perpetrators are too politically immature to be trusted.

      For 40 years the US and USSR were prepared to destroy all life on the planet to preserve their political systems.

      The Palestinians could be a heck of a lot more successful if they applied Ghandian passive resistance. But that is not going to happen and it is utterly futile to demand that one side does not target civilians when the occupying power is targetting civilians.

      The reason I made the comparison to the RIAA is that in each case we have a group that believes it has a monopoly of political influence and that this will enable it to make and sustain irrational political demands.

      The problem with morality is that it is not comparitive. An unjust demand is not justified by unjustifiable methods of resistance. Suicide bombers don't justify the Israelis apartheid system, the settlements or the occupation any more than the apartheid system, the settlements and the occupation do not justify suicide bombings.

      --
      Looking for an Information Security student project suggestion?
      Try http://dotcrimeManifesto.com/
  4. I'd do it for less. by Myshkin · · Score: 4, Funny

    I'd launch a single for them for $1000. My only over head would be the disc, the duct tape, and the Estes Rocket.

    1. Re:I'd do it for less. by Dr+Caleb · · Score: 2
      I'd pay that to see you launch a Back Door Boys album, but it must ethier 1) not return to Earth, or 2) burn up on re-entry.

      --
      "History doesn't repeat itself, but it does rhyme." Mark Twain
  5. The Music Business is Full of Lowlifes. by errxn · · Score: 3, Funny

    In another shocking story, the *sun rose in the east* this morning....

    --
    In Soviet Russia, Chuck Norris will still kick your ass.
  6. Guide TO Salon Clear Channel Stories by wiredog · · Score: 4, Interesting

    In the index, of course.

  7. Weird by Anonymous Coward · · Score: 2, Insightful

    If the record companies have to pay so much to get broadcast radio to play their music, you think they'd be happy to let the internet radio stations do it for free.

    1. Re:Weird by rapid+prototype · · Score: 5, Insightful

      yes, but the internet is bad. the internet means piracy, which means profits go down. at least that is the 'company line'.

      actually the real reason is the record companies like the CONTROL they have over radio. sure, it costs them money to pay off clear channel, but the record companies really choose who gets played by paying the big bucks -- it's a high cost of entry and they are the only ones with the money. in turn, they strangle the artists by saying "do what we want or we won't have you played. sign our contracts or we won't have you played and you'll never become anything." since (at least before the recent LoC levy on internet broadcasts) the cost barrier to the internet broadcast was very very low, they were afraid of this.

      the real reason the record companies wanted the prices higher was to regain the effectual control of the medium by raising the cost of entry to a price only they could afford. either that, or they wanted it so high, that no one could afford it.

      i actually really believe that the record companies are getting ready to deliver their own internet broadcasts -- and this will be at no cost to them as they do not have to pay their own copyright fees.

      -rp

    2. Re:Weird by jcsehak · · Score: 2

      Actually the real reason is that the internet sucks as a method of promotion vs. radio. Can you listen over the internet:

      --in a car, on your way to work?
      --at work, if you don't sit at a computer (or can't use headphones)?
      --at home, if you have a dialup connection?

      What's more, can you just "flip on" the internet, and with a twist of a dial, browse through a whole bunch of stations? Until technology gets better, radio is still the way to go.

      --

      c-hack.com |
    3. Re:Weird by Erasmus+Darwin · · Score: 2
      "the internet means piracy, which means profits go down. at least that is the 'company line'. actually the real reason is the record companies like the CONTROL they have over radio."

      While you use the notion of control to further the concept of record companies selectively promoting artists, I'd like to propose a slightly different control -- control over which part of an artist's work gets shared.

      In the realm of Internet copyright infringement, there's nothing to restrict the sharer from offering up an entire album. As connection speeds rise, harddrives get bigger, P2P technologies mature, and audio standards get more efficient, it's only going to get easier for people to get entire albums quickly and easily. Throw a CD burner into the mix, and you've severely undercut the desirability of the store-bought product.

      But really, if it's all about the RIAA trying to restrict what acts get exposure then all someone has to do is create a service that provides free exposure for any material that the copyright holder has granted redistribution permission for. The RIAA can say "Don't share Metallica songs." The RIAA can't say "Don't share 'Erasmus Darwin Sings the Blues'."

      The only tricky part is coming up with a technical solution that provides enough accountability in the case of someone attempting to use it illegally. By being able to explicitly defer accountability on to someone else (and not trying to play the accountability shell game that the P2P services tended to enjoy), I believe you could build a service that promoted new artists and one which wouldn't give the RIAA legitimate ground on which to complain.

  8. Re:The music industry is one giant mess. by sphealey · · Score: 4, Insightful
    I really don't see how this type of crap can continue for much longer.
    On the contrary: no one who is adversely affected by this behaviour (read: individual consumers) has the power to do anything about it. And no one who has the power to do anything about it (read: lawmakers, FCC, Justice Dept.) cares (or more charitably, thinks it is a bad thing).

    So I would expect this to continue until someone with political clout (e.g. Clear Channel) is hurt; at that point there there will be a big brawl in Congress but again the individual consumer will not be at the negotiating table.

    sPh

  9. Frustrating by sulli · · Score: 4, Interesting

    They pay Clear Channel, yet shut down SomaFM for not paying more than they already do.

    --

    sulli
    RTFJ.
    1. Re:Frustrating by curunir · · Score: 2

      SomaFM didn't get shut down, they made the decision to shut down in light of the recent LoC decisions on compulsory licensing rates. They're just way too high.

      Since SomaFM and many other net radio stations don't make money and are run as hobbies (Rusty has a day job...I work with him ;), most aren't willing to keep broadcasting and risk being sued. It's one thing to stick up for a cause, but when you risk being sued by the RIAA, you're risking your house, credit history, etc. Given how high profile Rusty has been, it makes complete sense to shut down for now. Many stations are going to keep broadcasting anyways, and at least one will get pounded on by the RIAA.

      The guy who writes the shoutcast server (who's own stream was amazingly cool before it had to shut down last week) is rumored to be at work adding in subscription features so that webcasters will be able to afford to broadcast legally. That will allow others to sign up for accounts and then listen with other shoutcast servers which illegally relay the signal to many other listeners. So, the RIAA would be able to take down your favorite relay, but not your favorite stream.

      Oh...as to your allusion the RIAA being mobsters, the term I've seen coined here on /. is Riaacketeering.

      --
      "Don't blame me, I voted for Kodos!"
  10. Webcasters by Anonymous Coward · · Score: 4, Insightful

    What gets me is that on one hand, the labels are whining that the radio stations WON'T play their music, and on the other hand bitching that webcasters ARE playing their music.

    Free exposure was there for them, but they shut it down!

  11. Satellite radio by EyesWideOpen · · Score: 4, Interesting

    I'm not sure exactly how the whole satellite radio thing works but don't they have their own radio stations for satellite radio (i.e., Clear Channel-free) with their own disc jockey's and whatnot? If so, I wonder how the payola involved in satellite radio compares with that of FM radio.

    --

    As with the sun's light
    My mom was magnificent
    Unquestionable
    1. Re:Satellite radio by Jeremiah+Blatz · · Score: 2, Insightful

      Satellite is, if anything, worse. Instead of being one major player with a few minor ones and thousands of stations, there are 2 companies and like a hundred stations. Satellite is super-scary in that respect. If it seriously displaced terrestrial radio, the amount of control would make today's situation look like anarchy/a free market.

    2. Re:Satellite radio by cheezedawg · · Score: 2, Informative

      Well, considering Clear Channel is a owner of XM satellite radio, my guess is its about the same...

      --
      "The defense of freedom requires the advance of freedom" - George W Bush
    3. Re:Satellite radio by trix_e · · Score: 5, Informative

      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.

      --
      No man is an island, but Gary is a city in Indiana.
    4. Re:Satellite radio by dubiousmike · · Score: 2, Interesting

      If you think Satelite Radio isn't capatalizing on the same business model as regular radio, think again. There is nothing at all to suggest otherwise. If I were driven soley by the bottom line, I definitely would.

      If we all were satelite radio, wouldn't we do the same? Maybe not as most of us are geeks who care more about what is right and less about a big payday at the expense of others.

    5. Re:Satellite radio by Telastyn · · Score: 2

      Wait... Doesn't Clear Channel hold a majority stake in XM (but not Sirius)?

      Somehow I don't think the company is going to suddenly become benevolent just because their transmitters are in space.

    6. Re:Satellite radio by zerocool^ · · Score: 2

      I'm still not sure what to make of satelite radio.

      I mean cable TV caught on, and it has ads, but...

      I have this thing for paying for radio in my car that costs $40/month or whatever it is and still getting the ads. I mean, seriously, is it that much more expensive to broadcast the signals from one satalite than from 1000 radio towers all over the country that they need guaranteed recurring revenue in addition to ads and margin on hardware licencing fees?

      I just keep seeing the commercials that proclaim over 100 channels, 20+ with no ads... and I think why don't they just not have ads on the non syndicated programming, i.e. everything but the talk stations and big music stations (DC101 etc).

      ~Will

      --
      sig?
  12. paraphrasing Richard Stallman... by kipple · · Score: 3, Insightful

    ...who had a speech last weekend in Italy at the hackmeeting 02

    "...for every CD sold only few major artists get 1$. All other artists and musicians do get less than a dollar, if they get any money at all. They say that the rest of the money is spent on advertising the cd; but what if the artists would decide to use the internet as their advertising media? We could develop a system that permits any user to donate a dollar to the author of the song, if the user wants. Actually, a dollar is what an artist already gets..."

    And I like to add:

    • if somebody doesn't like the song, he wouldn't have bought the CD anyway.
    • a dollar is a very small amount of money; there's a bigger chance that a user is more inclined on donating 20 single dollars to 20 different artists, instead of 20 dollars to a recording company (to have a cd where he likes only a song over 20 songs)
    • I think also that this will cause more money to go around; and a bigger cash flow will mean more money for a lot of people (but I was sleeping during my world-economics-110 class)

    So let's start spreading the word, especially to the music artists we know. Maybe it will change something...

    Oh yea, I forgot: I have no ideas on how much can a CD cost in the US. Here in Europe they cost like 20 euros each (which is more or less 20 dollars..). And please forgive me for my bad English, I hope you got the point and won't start bitching me around for spelling. Cheers.

    --
    -- There are two kind of sysadmins: Paranoids and Losers. (adapted from D. Bach)
    1. Re:paraphrasing Richard Stallman... by jcsehak · · Score: 2

      They say that the rest of the money is spent on advertising the cd; but what if the artists would decide to use the internet as their advertising media?

      How? Banner ads? Building their own site? How are people gonna know to go to the site? Internet advertising is WAY less effective than traditional. Where does that $15-1 go (besides label profits and recording/packaging costs)? Promotion. Sure, the artist gets $1 per CD, but when a lot of money is spent on radio airings, talk show appearances, signs in CD stores, magazinge articles, and commercials, he gets a LOT more of those $1s. Probably more than if he were to get $10 per CD, but do all the advertising himself. And if he's not a big star already, he better be damn good, and ready for some intense touring. Making it without a label backing you is damn near impossible, though it can be done (see Ani DiFranco).


      We could develop a system that permits any user to donate a dollar to the author of the song, if the user wants.

      Here's why the donation model sucks: people are lazy. It's a pain in the ass to fill out credit card information and stuff just to give someone a dollar over the web. And if you don't take credit cards, forget it. Paypal is even more of a pain, if you don't have any funds in your account. As it is, half the reason people buy CDs at all is because they happen to be out shopping and they wander by a CD store. Or they see a CD in the grocery checkout line. The donation stuff would work great if it could let people take a buck out of their pockets and magically send it to the author. But anything more complicated is going to have highly diminishing returns, expecially when you can get the stuff for free anyway, which is what Stallman is hinting at. I think Stallman's ideas might only work in his theoretical world, but hey, look at me I'm following his advice (see sig). No, it's not "The blind leading the blind," it's just that all this RIAA/Clear Channel/payola stuff is disgusting, and it helps to shut your eyes.

      --

      c-hack.com |
  13. A Bad Thing? by simetra · · Score: 2, Interesting

    People jump to the conclusion that Payola is a bad thing. Why? You say it doesn't allow small artists airtime. So what. If they're good, they can get a record contract and get on the air too. Music and Radio are businesses, not god-given rights. The music industry spends a lot of money finding (or making) what people want. Radio stations are businesses also. If they collect money from record companies - who have invested a lot of time and money in their artists - to give them airtime, what's the big deal?

    If you don't like the crap they're trying to sell, listen to a different station, go buy music you do like, whatever.

    --

    "Would it kill you to put down the toilet seat?" -- Maya Angelou
    1. Re:A Bad Thing? by Software · · Score: 3, Informative
      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

    2. Re:A Bad Thing? by jonerik · · Score: 3, Insightful

      If they're good, they can get a record contract and get on the air too.

      Quantity and quality aren't necessarily the same thing.

      The music industry spends a lot of money finding (or making) what people want.

      Actually, considering that more than 90% of major label releases lose money, and that the record industry as a whole has been on a downward sales slide for the last couple of years, a more accurate statement would be to say that the music industry spends a lot of money finding/making what people don't want.

    3. Re:A Bad Thing? by nolife · · Score: 2, Interesting

      If you don't like the crap they're trying to sell, listen to a different station, go buy music you do like, whatever

      Where do you find or hear about this music that you may like? Napster? another P2P with your bandwidth capped CM? another radio station in your area? Online in some crappy quality that you must pay every month to hear? How about some other method that is being sued or has been shut down recently.

      Its not that easy. Clear Channel owns most major markets. In DC they control 90% of the market. They have a pop, rock, oldies, news, casual, and a jazz station. These stations do not compete with each other. The choices are very limited. I don't actually listen to the radio much but I did find WHFS pretty decent but its hard to pick up in my area.

      --
      Bad boys rape our young girls but Violet gives willingly.
    4. Re:A Bad Thing? by HiThere · · Score: 2

      Guess what, not only do I consider payolla a bad thing, I also consider "sales incentives" a bad thing, if they involve paying for product placement.

      The question is, what should be done about it. As has been argued previously the incentives to pay for product placement (or payolla) are large, and it is difficult to detect. These in combination indicate that a law against it would be a bad law, and be likely to be even more socially disruptive than the problem it attempts to fix (c.f., the drug laws and the "war against some drugs").

      But what is the appropriat response? Allowing it to run untrammelled is undesireable. Making it illegal is undesireable. So the solution is probably a bit wierd. Perhaps something like a progressive tax on the number of copies of the same merchandise that you have on your shelves. So if you have 30 different records you pay a low percentage of the sale price on each of them and if you have 30 identical records you pay a higher percentage of the sale price. (Not a good suggestion, as it would require too much bookkeeping, but a guess at the *kind* of thing that might be a solution.)

      --

      I think we've pushed this "anyone can grow up to be president" thing too far.
    5. Re:A Bad Thing? by bilbobuggins · · Score: 2
      You say it doesn't allow small artists airtime. So what. If they're good, they can get a record contract and get on the air too

      This is not true.
      The problem with payola is that most artists getting signed these days has more to do with their looks than their talent.
      The record companies aren't selling music, they sell a product, one they are trying to maximize profits on meaning cross media market saturation and mass appeal to the lowest common denominator.
      Britney Spears being on the radio all the time has a lot more to do with the quality of her videos and the way she looks on posters than it does her music because it's the image they're selling and the image that makes money.
      Getting airplay is just like bonus free advertising, except in the case of payola where it's like traditional paid advertising.

    6. Re:A Bad Thing? by Shelled · · Score: 2

      Some times I wonder if university psyche majors troll this forum gathering material for their research papers. No one could naturally be this obtuse.

  14. Re:The music industry is one giant mess. by phsolide · · Score: 5, Insightful

    When has the music industry not been one giant mess? Wasn't there a payola scandal in radio in the mid-50s or ealy 60s?

    I'm dating myself but when I was a kid you could go into record store (yes vinyl records) and right up front see the rack of the Top 40 "45s". Even 10-year-olds could figure out that the ratings weren't exactly based on what other people thought of the songs. For instance how did a song get into the Top 40 to start with? The Top 40 rack was the only source of 45s in the store and the LP containing the songs on the 45 didn't usually make the racks until well after the "hit single" was in heavy rotation on the local radio station. So who was "voting for" or buying the 45s to get them into the Top 40 in the first place? Nobody heard the songs until the 45s appeared in the rack.

    Periodically obvious poop made it into the Top 40 temporarily. Nobody and I really mean nobody listened to about a quarter of the 45s in the Top 40.

    I've heard that the music industry is totally 0wned by the mob but I'm not too sure about this. If mob-0wnership is the case the situation just won't change.

    --
    Quit playing Monopoly with Bill. Switch to one of many non-Microsoft products today.
  15. Re:The music industry is one giant mess. by Gryffin · · Score: 2, Insightful

    "So I would expect this to continue until someone with political clout (e.g. Clear Channel) is hurt; at that point there there will be a big brawl in Congress but again the individual consumer will not be at the negotiating table."

    Ah yes, welcome to the New America. Of the Corporations, By the Corporations, and For the Corporations. And absolutely no one looking out for us mere "subjects."

    That low-level whirring sound you hear from Massachusetts to Georgia is the sound of our Founding Fathers spinning in their graves.

    --
    Learn from the mistakes of others. You won't live long enough to make them all yourself.
  16. Re:Unpopular opinion by aron_wallaker · · Score: 2, Insightful

    Sure, let them run their business anyway they want to.....the second they start paying a fair price for their bandwidth!

    Your cell-phone companies have been paying through the nose to get the frequency licenses to provide next-generation services, while the radio stations have huge chunks of bandwidth that they seem to have been granted lifetime free licenses for. The justification for this used to be that they 'provide a public service'....payola is not a public service.

  17. Re:Unpopular opinion by phillyclaude · · Score: 2, Informative

    keep in mind that you (assuming you are an American Taxpayer) own the airwaves (IIRC). The radio and TV airwaves are publicly owned by the taxpayers. think about this the next time they are screwing you.

    --
    A computer without a Microsoft operating system is like a dog without bricks tied to its head
  18. Clarification by sterno · · Score: 2

    Cost to a RECORD LABEL: near zero

    Internet broadcasters are going to get screwed I'm sure (and I'm one of them so I'm, to say the least, a bit pissed). But record labels can do their own promotion on the Internet if they'd just let go of the past and embrace the new ways of doing business.

    --
    This sig has been temporarily disconnected or is no longer in service
  19. Statement from Senator Russ Feingold by Kallahar · · Score: 5, Insightful

    Statement of US Senator Russ Feingold on Market Concentration in the Radio, Concert, and Promotion Industries

    "Thank you Mr. President. I rise today to voice my concerns about the concentration of ownership in the radio and concert industry and its effect on consumers, artists, local businesses, and ticket prices.
    ...
    In 1996, prior to the passage of the Telecommunications Act, there were 5133 owners of radio stations. Today, for the Contemporary Hit Radio/Top 40 Formats, four radio station groups - Chancellor, Clear Channel, Infinity, and Capstar - control access to 63 percent of the format's 41 million listeners nationwide.
    ...
    Many of the same corporations that own multiple radio stations in a given market wield their power through their ownership of a number of businesses related to the music industry. For example, the Clear Channel Corporation owns over 1200 radio companies, more than 700,000 billboards, various promotion companies, and venues across the United States. Also, just three years ago, in 1999, Clear Channel bought SFX productions, the nation's largest promotion company.
    ...
    Ticket prices have gone up by nearly 50 percentage points more than consumer prices since passage of the Telecommunications Act - and that doesn't even include the facility fees, parking charges, box office charges or food and beverage increases.
    ...
    It isn't just about who's talented, and who deserves to be played. It's about a shakedown, and that's just unacceptable, Mr. President, for the industry, for the artist, and for all of us as who listen."


    Travis

  20. Re:Unpopular opinion by bugg · · Score: 3, Insightful
    Why does the government need to step in and tell the market how it's "supposed" to work?

    Because the airwaves are publically owned and therefore the usage of them needs to be regulated. The spectrum is limited, and the FCC is granting a natural monopoly of sorts to each broadcaster in each region on a specific frequency. As competition is inherently limited, and the airwaves are in the end owned by the people, the FCC damn well better be regulating the market.

    Would you want every commercial radio station gathering together and agreeing only to play paid advertisements and no music? Well, they can't do that under law (broadcast TV and radio have max times for advertising breaks... although this is often circumvented with a "You're watching XXX... which will be back shortly" message, that's besides the point) and that's a good thing. Payola should be limited in a similar fashion because I shouldn't be forced to listen to music that a record company wants me to listen to on *my* airwaves.

    As for enforcing payola laws, do so only if you do it unilaterally. We don't need to make a 21st century Alan Freed.

    --
    -bugg
  21. CARP compromise designed to stifle sm. 'net radio by ethereal · · Score: 3, Interesting

    Since I couldn't get this story submitted (too much Microsoft crap to fight through, apparently), this seems like a good place to pass on the story: Cuban says Yahoo!'s RIAA deal was designed to stifle competition

    Mark Cuban:

    Now, no one asked me any of these things prior, during, or after the first or second pricing. I'm not sure that this matters. But if it does, here it is: The Yahoo! deal I worked on, if it resembles the deal the CARP ruling was built on, was designed so that there would be less competition, and so that small webcasters who needed to live off of a "percentage-of-revenue" to survive, couldn't.

    As originally seen at: http://www.dnalounge.com/backstage/log/2002/06.htm l#24-jun-2002, although JWZ seems to have taken down that news post at the moment (?).

    P.S. Does anyone else who lost moderator access on the Thread of Doom find that they can't get any stories submitted any more, or is it just me? I'm beginning to cultivate a healthy persecution complex :)

    --

    Your right to not believe: Americans United for Separation of Church and

  22. Alan Freed was an honest man by jonerik · · Score: 3, Funny

    Hilarious. Payola used to at least buy you a hit. Now all it does is get your foot in the door. For a quarter-mil you buy the chance to have a hit. At least Alan Freed gave you an honest hit for your money.

  23. Re:Unpopular opinion by Your_Mom · · Score: 2
    ...while the radio stations have huge chunks of bandwidth that they seem to have been granted lifetime free licenses for...
    Excuse me?

    Broadcast Radio Stations have to renew their licenses every 10(?) years. You know that message on TV/Radio that says "We are renewing our license, the FCC is having a hearing about us, if you have a complaint about us its at $location on $date". That is done every time they renew their license, and if you have a complaint you can file one or show up. Also, I think licenses cost $5000->$10000 dollars (I am probably off, Take with a large helping of NaCl) every time you renew. So, it's not like aren't paying.

    --
    Objects in the blog are closer then they ap
  24. There's a solution .... by i_want_you_to_throw_ · · Score: 5, Interesting

    A fight between the 800 pound gorillas and the public suffers.

    You could launch a record and get it played on the radio for cheaper but it won't be on Clear Channel. Clear Channel does all kinds of evil stuff besides that, like piping in remote DJs and making you think they are local.

    This sort of battle was inevitable when the FCC lifted regulations on radio ownership.

    The solution for you, the public might be to try to patronize stations that are not conglomerate owned.

    I DO listen to one radio station that is both terrestrial and internet streaming: 97X out of Oxford Ohio. Here's some of the NEW stuff I'm enjoying..
    Elvis Costello
    Hives
    Cornershop
    Idelwild
    Girls Against Boys
    The complete playlist is here

    Great music that is bucking the current cock-rock trend of Linkin Park, System of a Down, Korn, etc. being offered by local Washington DC suck ass radio in the form of WHFS and it's "Most Played" list. (It's not Clear Channel, It's CBS, just as bad)

    Then there's Radio Paradise.

    Any /. geek would love this station merely for the technical expertise that Bill Goldsmith pulled off when he set this up.

    Just boycott Clear Channel. Turn it off.....

    You needn't follow the flock is you refuse to be part of it.

    1. Re:There's a solution .... by Ricdude · · Score: 2

      In the DC area (definitely east of DC), you may be able to pick up WRNR 103.1, which has as their tagline, "Everything under the sun, in no particular order." If you are *really* sick of alleged "alternative" radio, give them a listen. You will hear a wider variety of music than you could imagine from one radio station: blues, folk, jazz, etc. Hell, I've heard them play Zappa in afternoon drivetime.

      --
      How's my programming? Call 1-800-DEV-NULL
    2. Re:There's a solution .... by gmhowell · · Score: 2

      I'll have to try that. I need something to replace 99.1 on my presets. Can't remember last time I listened for more than 30 seconds.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    3. Re:There's a solution .... by david+duncan+scott · · Score: 2
      It's a no-brainer. Damian's there.

      Mind you, their transmitter is powered by three D-cells and a tired squirrel, so they peter out pretty quickly when I drive to Hunt Valley, but I can get them pretty well everywhere else I go.

      --

      This next song is very sad. Please clap along. -- Robin Zander

    4. Re:There's a solution .... by Danse · · Score: 2

      I live in San Antonio, TX. I can't stand to listen to any station in town anymore (with the exception of NPR). As far as music stations go, we have 99.5 KISS which is the same nu-metal rock crap that is played coast-to-coast. We have the obligatory hip-hop station, the "classic-rock" station that used to be pretty good, but now is just the same stuff over and over. Then we have about half a dozen or so country and tejano stations. Oh and a couple of classical stations. I can't listen to the radio in the car anymore because I'm afraid my brain will jump out of my head and I'll have an accident. About the only thing I can think of to do is to download a bunch of MP3s and get myself an MP3 CD player for the car.

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
    5. Re:There's a solution .... by warpSpeed · · Score: 2
      It's a no-brainer. Damian's there.

      Wow, I was wondering what happened to him. Great play lists, ummm, and a "unique" on air personality.



      It was a long long time ago in central Maryland that WGRX was the best thing in alternative radio (then classic rock, now they are country). About the same time WGRX switched to classic rock, WHFS came into being, and it was very good. Unfortunatly they got to sucessful, and thus too commercial.



      Now there is nothing in Maryland that is half way decent, everything is just regurgitated corperate pop drivel.



      I was hoping Internet radio would change all of this... looks like that dream is shot too.

    6. Re:There's a solution .... by Roblimo · · Score: 2

      Sadly, WRNR shut off their Webcast months ago because of the original decision to charge over-the-air broadcasters additional fees to Webcast their programming.

      This was the other hope: that interesting stations like WRNR would gradually move onto the Internet and keep indendent radio alive even in a world increasingly dominated by Murky Channel, Finite Broadcasting, and the rest of the "10 song playlist" crowd. It was killed last year but hardly anyone seemed to notice.

      Sadly, my home in Elkridge is just beyond the reach of WRNR's tiny signal. Jake Einstein (WRNR owner; Damien's dad) once told me there's not a chance he can get the FCC to license him for more wattage, that I am just going to have to move...

      Oh, well.

      - Robin

  25. Re:The Problem With Clear Channel by Jonny+Ringo · · Score: 2, Interesting

    ok, I'm hearing ya. But, I also think there are others like me who use to listen to radio but no longer do because they were able to break through and find much better music on the internet than on the radio.

    Sadly one of my favorites is no Longer. www.monkeyradio.org, played all sorts of trip hop, acid jazz type stuff that I took to like flys on shit. Monkeyradio.org had to shut down becuase of the IRAA, he's asking for help to send a list of cd's you have purchased because of monkeyradio.org, to help prove that it helps the industry. So if you are a listner help out! I personaly use a stream ripper to get a lot of the songs I like, and I have purchased over $200 worth of music becuase of monkeyradio.org.
    I'm now listing to bassdrive (its linked off of shoutcast under electronic D&B).

    My point? I'll will never go back to radio. I hate radio. It seriously sickens me. So I encourage you to break through!

  26. They deserve it. by Eric+Seppanen · · Score: 2
    Major labels are the ones who decided it's a good idea to start paying to get songs on the air. Now they're crying because Clear Channel owns enough stations to start raising the price?

    The entire major-label-commercial-radio biz is totally corrupt. You might as well make an effort to support independent bands, stations, and labels because there ain't no way this business is going to get cleaned up any time soon.

    --
    314-15-9265
    1. Re:They deserve it. by rhadamanthus · · Score: 2
      The entire major-label-commercial-radio biz is totally corrupt. You might as well make an effort to support independent bands, stations, and labels because there ain't no way this business is going to get cleaned up any time soon.

      This is VERY true. Here in houston, damn near EVERY station is Clear Channel owned and operated. Just recently the old ones were bought out. The music quality and DJs have since REALLY sucked. I mean, I can flip to the alternative station, the rock station, and the top-40 Hits station and hear all the same songs, with only minor variances. It is just gross. I hated radio before Clear Channel, but now I wish for the ol' days when radio only sucked, not really sucked.

      As for DJs, Clear Channel did not get along with the old ones and they have slowly been fazed out. Not really surprising since Clear Channel executives basically decide on the play loop anyhow. I don't even know what the point of having a DJ is for Clear Channel , except to look normal.

      For the first time in my life, I am honestly getting serious about installing a CD player in my car. I just can't take hearing the "textbook" songs played over and over, very day....

      The "art" of music has been completely replaced by the "money" in music. sad.

      ----------rhad

      --
      Slashdot needs to interview Natalie Portman.
    2. Re:They deserve it. by jafac · · Score: 2

      I guess the whole point is:

      Is the song the PRODUCT, or is it promotional material for the REAL product, the actual CD and/or concert tickets?

      Remember back in the 1970's when "music videos" were nothing more than promotional materials used to sell records to record store owners?

      Then, the promotional materials themselves became the product when MTV was born (actually, when the Monkees were born, but that's almost a different subject entirely).

      Kids would sit and watch MTV commercials to "fund" the content, which in effect, was just more commercials. THAT was a good scam.

      To have to PAY the station for airtime for your "commercial" - that sounds completely fair to me. IF there was a demand to hear the music, people would go out and plop down their $20 for a CD, no radio necessary. Radio-played music is promotional material designed to create that demand.

      --

      These are my friends, See how they glisten. See this one shine, how he smiles in the light.
  27. Number of stations by Kallahar · · Score: 2

    We all know that ClearChannel has over 1200 stations across the country, and that they reach around 60% of the nation's population, but I have a question:

    How many radio stations are there, total, in the US/World?

    I have been unable to find the answer on the net, does anyone have a source?

    Travis

  28. Payola always reminds me... by buckeyeguy · · Score: 2
    of the WKRP in Cincinnati episode where the mgmt. discovers a DJ taking payola... with the usual hilarious consequences.

    As for real life payola, it has to be the main explanation why so much crappy music gets on the air.

    --
    I'd have a personalized plate on my car, but "toxic bachelor" won't fit into 7 letters.
    1. Re:Payola always reminds me... by Darth+RadaR · · Score: 2
      As for real life payola, it has to be the main explanation why so much crappy music gets on the air.

      Also consider that the average city has about 12 or so frequencies of nothing and all of them are playing the same crap. That equals a lot of payola from record companies.

      Any American city will have....

      3-5 top 40 pop stations

      2 country stations

      1-2 R&B stations

      1 "Alternative" station, usually called "X" something or other that is strictly commercial and not accociated with a college in any sort of way (Other than brand-alizing parties)

      1 classic rock station

      1 (50s & 60s) oldies station

      a random collection of news, classical, religious, etc.stations.

      And ALL of them have the same playlist and are without any sort of local flavour. I bet you'd have a hard time finding a commercial DJ who is actually from the city he/she broadcasts to. And the play list is not generated in that city either. So much for local talent and character. Rock on, Generica. ;(

      Sorry for the rant, but I remember when radio didn't suck so bad.

      --
      /*drunk.. fix later*/
  29. Free Advice For Hilary and Cary... by thumbtack · · Score: 2

    So, if you don't like paying the millions of dollars to get marginal music shoved down peoples throats, Quit paying. Simple. Clear Channel still has to get its music somewhere doesn't it? SFX (the concert arm still needs to fill the venues. "The cream will rise"

    Put those so called Indie promoters of of business, and let the market determine the hits, not the pay. Imagine, only good music gets played, (or stays on the charts), the public buys what they like, and your sales go back up.

    Imagine, a business where the consumers actually gets to pick what they want to hear....can't be any worse than the 5% success rate you have now...and you can save millions on payola, and maybe even bribes...err campaign donations....

  30. Yahoo, RIAA, CARP, and Very Bad Deals by Alien54 · · Score: 3, Insightful
    This related item has to do with Something that was Online-Tonight last night. [You can listen to the entire show, or just the relevant hour, conveniently archived online and nicely labelled]

    It seems that the the Deal that Yahoo struck with the RIAA a while back has an awful lot to do with the back room shennaniganns that were somewhat implicate in the CARP arrangement.

    This deserves major news coverage of it's own.

    Kurt Hanson of Save Internet Radio has a letter that he received from Mark Cuban, former owner of audionet.com/broadcast.com/Yahoo! Broadcast on how the Yahoo!-RIAA deal was structured. Read the entire letter here.

    Bottom line:

    • The voluntary royalty deal between Yahoo! and the RIAA that the Librarian of Congress announced as his template for the entire industry last week was a deal crafted by Yahoo! to shut out small webcasters and decrease competition.
    • The villian in this story is not Yahoo! (They were simply being savvy businesspeople!) The villian is the CARP process by which this anti-broadcaster, anti-small-webcaster deal became the template for the industry
    • As Mark Cuban says, they didn't want percent-of-revenue pricing art Broadcast.com Why? Because "it meant every "Tom , Dick, and Harry" webcaster could come in and undercut our pricing because we had revenue and they didn't".
    End Result? We probably need to start screaming at Congress again.
    --
    "It is a greater offense to steal men's labor, than their clothes"
  31. Lesson Learned by 4of12 · · Score: 3, Insightful

    I think a while back the tech industry learned the lesson that "push" technlogy was only viable to a certain extent. People didn't mind getting headlines refreshed on their desktops or reminded of "buddies" logging on to IM systems, but they got annoyed pretty quick if they felt like something was getting rammed down their throats and they were getting raped monetarily.

    The exact same lesson is getting played out on a much slower time scale in the music and film distribution business.

    The payola problem simply highlights the inefficiencies built into the current distribution system. The weight of it creaks and the smell of it reeks.

    --
    "Provided by the management for your protection."
  32. What are the Odds? by Howzer · · Score: 5, Insightful
    Let it first be said that I have no love for the music industry, nor do I work for them (anymore)!

    But I feel I should have a go at putting some numbers that I was once quoted out there for /.teers to shoot down. Here goes.

    The music industry in the US releases about 30,000 albums every year in total. That's about 600 a week. You can verify this figure plenty of ways - including looking on the web. Now here's where the figures start to be pulled out of someone's arse. It's been said to me by people who should know that some number way smaller than 10% of these releases actually make money. This is the missing information that people like Courtney leave out of their diatribes against those bloodsuckers in "the industry".

    So when records go off like a bomb, and record companies sit there raking in the profits, don't forget that these profits go to pay for the other 90% of albums that didn't make any cash.

    The record companies are not making that much in total, anyway. Their annual reports are online, so you can check this stuff too.

    Basically, I'm just a bit bored with hearing the same old charges raised and accepted without any support

    So on to payola. Again, this is essentially a storm in a teacup, with lots of missing information that never seems to get presented. For example, payola is the same story as in the supermarket game.

    Did you know that supermarkets make more money from placing the product on their shelves than they do from taking it off their shelves (ie selling it to you and me)? Standard stuff. So it is with payola. The radios make more money playing the music than squeezing in the ads. That's how they can afford to play that "nonstop hour of music" or whatever at lunchtime!

    Of course record companies, or anyone, need to pay to get their products placed! I don't know why anyone thinks it is any different! The radios are businesses, and they can play what they like, so they play what is in their shareholders interests to play.

    Flame away, but I don't understand the shocked gasps that always follows this kind of "revelation", just like I don't understand how people get away with painting the record companies as ravening beasts, when a simple look at the balance sheet tells you they are out there makin' deals just like every other business since the dawn of time. If they were super-profitable, don't you think everyone would be doing it?

    1. Re:What are the Odds? by sphealey · · Score: 2
      It's been said to me by people who should know that some number way smaller than 10% of these releases actually make money. This is the missing information that people like Courtney leave out of their diatribes against those bloodsuckers in "the industry".
      I once talked to the CIO of a conglomerate with an entertainment division. He told me about the time he called a meeting of the senior technology people from all his divisions. The meeting was to be held in LA. He went to JFK to fly to the meeting, and as he was walking back to his coach seat he saw all his techies from the music division sitting in first class seats - cost about $4,000 each (he checked later). When he berated them for this waste of money he was told, "but everyone in our division ALWAYS flies first class".

      So (as with the Coming to America case) let's be very very careful about defining what "makes money" and what doesn't.

      sph

    2. Re:What are the Odds? by Amazing+Quantum+Man · · Score: 4, Funny

      Their annual reports [sony.co.jp] are online, so you can check this stuff too

      OK, I looked. Where was the $1B line item for "piracy losses"? I know it has to be there, because they keep telling us that they're losing billions to piracy!

      --
      Fascism starts when the efficiency of the government becomes more important than the rights of the people.
    3. Re:What are the Odds? by gmhowell · · Score: 2

      Just a couple of things:

      The record companies ARE super profitable. The reason everyone isn't doing it is highlighted in the article: payola. It requires a certain, large, amount of capital to get in.

      But the more important thing is where you mention that ~5% of the records go to support the other 95%. Well, remember that the record companies claim that ~90% of the cost of a CD is promotion. But if only 5% of the records are successful, it means that the promotion isn't working. It is $13 or so out of every CD that is just going into churn.

      If you eliminate this 70% of the cost of a CD, it is possible that music sales will decrease. But will they decrease enough to offset the increased profitability of each disc? I don't think so. Again, if promotions were so good, why doesn't it work more than 5% of the time?

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    4. Re:What are the Odds? by alphaseven · · Score: 2
      I disagree with many of your points.
      1. You say: The record companies are not making that much in total, anyway.

        If cds didn't make money, these large corporations wouldn't be in the business, and they wouldn't be buying other record lables.

      2. Saying 90% albums don't make a profit is no excuse for not paying artists. 90% of movies don't make money, but how come actors and directors get paid even if a movie flops? Of course the record companies are going to say that profits are slim, what do you expect them to say: "Yeah we made a lot of money off our releases this quarter, luckily our artists have shitty contracts."
      3. The analogy to supermarkets is incorrect, if I don't like the selection at a supermarket, I can shop at another one, anyone can set up a store to sell niche products.

        Radio stations, on the other hand, have a government granted monopoly on a range of frequencies. Clear Channel wants it both ways, they want no government regulation on what they play, but the want tough government regulation on anyone trying to set up a pirate radio station. They want privilages without any responsibilities.

    5. Re:What are the Odds? by RickHunter · · Score: 3, Insightful

      Because the only CDs they promote are the 10% that make millions.

      Think about it, when you walk into a record store, what do you see? No adds for SignedGarageBand#42, but posters everywhere for PopDiva#99's latest release. Well, what about payola and radio? PopDiva#99 again. Concerts? PopDiva#99. What exactly does all this money supposedly spent promoting SGB#42 pay for? CD cover art? Catalogue entries? Music videos?

      Someone care to explain this to me? It looks like they're doing exactly what everyone accuses them of - dictating what we listen to.

    6. Re:What are the Odds? by hyphz · · Score: 2

      Well, the first problem is that the entire system of advertising is broken, IMHO. A fundamental assumption of capitalism is that those who make the best and most useful products get the money rewards. Advertising breaks this: it effectively allows people to buy an increased chance of getting a money reward for a product, regardless of how good or bad that product is. This means that those who have more money now are more likely to make more later, regardless of the quality of the stuff they and their poorer competitors make. As documented years ago, this causes the concept of the free market to decay, until it dies and you are left with a socialism in which the former 'market winners' of the capitalism stand in for the socialist government. We are practically at that point now.

      As mentioned elsewhere, the reason that radio is different is that it's ambient (even if you don't ever actively listen to the radio you'll hear things that are on it), it's a locked monopoly (there are only so many frequencies), and it consumes a public good (those frequencies). You can open your own store to sell your records, but you can't start your own radio station.

    7. Re:What are the Odds? by schussat · · Score: 2
      Of course record companies, or anyone, need to pay to get their products placed! I don't know why anyone thinks it is any different! The radios are businesses, and they can play what they like, so they play what is in their shareholders interests to play.

      You said a lot of interesting things; the point that payola is common is something that should be more widely understood. What I'm having trouble with is that that seems to make specious the claim that record companies are losing money to broadcast radio stations that also stream online. That is, if the logic behind payola is: record company pays radio station to promote album; album sells gazillion copies due to airplay; both radio station and record company profit; then under what logic does it make sense for record companies to go after streaming stations who are already getting paid to promote a CD? Online streaming, at least for big network stations, should mean more exposure for less cost -- but only if payola is accepted as standard practice.

      Note that this logic could even apply to indie or online-only broadcasters, who presumably aren't part of the payola stream; if the point of payola is exposure to markets, and record companies subsidize the low-sellers with the gigantic sellers, what's the problem with wider exposure that they didn't have to pay for?

      -schussat

      --
      The hour of noon has passed. Let us go and get some Kentucky Fried Chicken.
    8. Re:What are the Odds? by ansible · · Score: 3, Insightful

      You defeat your own point here. Anyone can set up a radio station to play niche music, and they do.

      Maybe you live in Nowhere Montana, and the airwaves are relatively un-occupied there.

      However, in major markets, like Chicago, the airwaves are packed. The only way you're going to run a radio station is to buy out an existing one. I somehow doubt that companies like ClearChannel are selling.

      The existing frequency allocations do represent a government-mandated monopoly (of sorts), and thus the companies that use them are (or should be) subject to regulation.

    9. Re:What are the Odds? by gorilla · · Score: 3, Insightful
      go to pay for the other 90% of albums that didn't make any cash.

      Of course, that's using the record company's financial figures to say they didn't make cash. I tend to disagree with both the RIAA & the MPAA's financial figures. For a start, they're cooked, with things which aren't truely expenses booked against them. This is in order to keep royalties down. Even if you eliminate this, with the long copyright length, and the relativily low cost of keeping their catalogs active, both record & motion picture industries have huge back catalogs. Even if a record or a movie doesn't make a profit in the 6 weeks after it's issued, it will make one eventually. You watch a movie played at 4 am on a crapy all night channel, and it makes a little more money. A big way that this happens is through bundling. If you want to buy "Spiderman" to show on TV, then you must buy 4 flops too. Record companies do it through sales of their catalogs.

    10. Re:What are the Odds? by mcwop · · Score: 2
      The profit margins may be thin, but what are the music execs scraping off of revenues in bonuses that in effect hurt the bottom line? What is their free cash flow. Net profits can sometimes be deceiving.

      You use Sony as an example. They are not just a music company. They sell electronics, movies too. Their annual report states that Sony had the largest consolidated sales ever. Sony music in 2002 earned operating income of $152 million on 4.8 billion in sales.

      Sony's music business segment increased by a total of 5% in 2002(page 12 - not bad for a lousy economic year).

      In the case of Sony, their music business is not in bad shape at all. Don't forget the book value of their music catalog too.

      --

      "I don't think it's selfish, to eat defenseless shellfish." -NOFX

    11. Re:What are the Odds? by Ian+Bicking · · Score: 5, Insightful
      The radios are businesses, and they can play what they like, so they play what is in their shareholders interests to play.
      The radio stations are given airspace (that belongs to the public) on the assumption that they are providing some public good (which is not necessarily exclusive with their own profit).

      If they are receiving payola then they are playing only advertising on their station -- some commercials are extended, stealth commercials to boost CD sales, but advertising nonetheless. That is clearly not in the public interest. There is not enough radio spectrum to go around, and pure-advertisement stations should be culled.

      There's nothing wrong with demanding that government-supported companies take into account the public good. However, when they are publically traded (and thus required to satisfy the shareholders demand for profit), the only way to get such companies to act in the public good is through coercion (regulation).

    12. Re:What are the Odds? by gmhowell · · Score: 2

      It seems to me that if the marketing is what separates the 10% from the 90%, they should market 100%.

      BTW, SDF-1 or not, I'll still kick your ass:)

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    13. Re:What are the Odds? by The+Cat · · Score: 2

      So when records go off like a bomb, and record companies sit there raking in the profits, don't forget that these profits go to pay for the other 90% of albums that didn't make any cash.

      Awwww... poor babies.

      This is the same tired excuse that the game industry trots out every time someone complains that the product is crap, the prices are too high and everything is a focus-group-developed clone. The recording industry doesn't make it sound any better.

      The other 90% are also a WRITEOFF.

      If they were super-profitable, don't you think everyone would be doing it?

      No. The recording industry has the same advantage over potential competition as the game industry: a hammerlock on distribution and shelf space. It not only makes them super-profitable, but it also makes it nearly impossible to compete with them.

    14. Re:What are the Odds? by The+Cat · · Score: 2

      Because the only CDs they promote are the 10% that make millions.

      We have a winner!

      ^^

    15. Re:What are the Odds? by Slak · · Score: 2

      It's been said to me by people who should know that some number way smaller than 10% of these releases actually make money. This is the missing information that people like Courtney leave out of their diatribes against those bloodsuckers in "the industry".

      While Courtney's example (here) freely admits that it is for a hypothetically successful band. She doesn't hide that fact. Maybe she doesn't acknowledge that this band covers the nine in front of it that "failed", but the record company owns the copyright (essentially) to all 10 bands' music. Her point was not only that the band would have been better off fiscally working at 7-11, but that they don't even "own" their songs, anymore!

      Regards,
      Slak

    16. Re:What are the Odds? by Edmund+Blackadder · · Score: 2

      The record companies may not make that much (for record companies) but there are shitload of people associated with the system that are not musicians, that are pulling down millions.

      And all that money goes as expenses for the record companies.

      So yeah a lot of money is being made.

    17. Re:What are the Odds? by Jester99 · · Score: 2

      In the difference between the supermarket example and the radio example is what we call "Anti-trust law."

      If I wanted to, I could open up my own supermarket. Buy Coca-cola, hot dogs, etc, at wholesale prices, and then resell them to folks like you for more money.

      I can not, however, start my own radio station. The bandwidth is owned by the FCC and is auctioned off to corporations and individuals for use in a given area. The media conglomerates can price me *WAY* out of the game, so I'll never get an FM band to use.

      So here we are, stuck with a few major players, who use their monopoly status and deep pockets to strong-arm anyone else out of the business.

      That's what makes it a problem worth talking about.

      You talked about "shareholder interest." Well, I'm sure I could find several hundred or thousand people in my area (Philadelphia) that would like to listen to an "Alternative" music station that played other, more off-beat music, and I could make them shareholders in my corporation if I were to sell stock. But the fact of the matter is that since I can't even get into the bandwidth game, that's a moot point.

      Their "shareholders" are stifling competition, destroying innovation in the industry, and wrecking a public resource. (Yes, the radio waves are owned by the public. The FCC merely chooses who may broadcast on them. In my mind, throwing monopoly weight around on the airwaves wrecks a public resource.)

    18. Re:What are the Odds? by hyphz · · Score: 2

      > When it becomes too "easy" to make a product, or
      > when there are too many manufacturers vying for
      > the same consumer, or there are too many similar
      > products with similar benefits and features,
      > advertising budgets help you win the battle.

      Which is exactly wrong. Suppose there was no advertising. Then, those manufacturers would instead have to improve their PRODUCTS to stand out from the crowd, rather than spending the money on making themselves well-known, which gives no long-term benefit to consumers.

      > But that doesn't mean I, as a consumer, go in
      > for the product that had the most airtime on TV
      > or radio

      No, but SOMEBODY does - otherwise the companies wouldn't be paying the big bucks for it.

    19. Re:What are the Odds? by gad_zuki! · · Score: 2

      Standard stuff. So it is with payola. The radios make more money playing the music than squeezing in the ads. That's how they can afford to play that "nonstop hour of music" or whatever at lunchtime!

      Its very simple:

      Payola is illegal and rightfully so. Product placement in supermarkets aren't.

    20. Re:What are the Odds? by Shelled · · Score: 2
      If record companies lose on 90% of their ventures, it's due to incompetent research and marketing. No one would accept this kind of excuse from other industries. Maybe it's time the cleared they ossified cruft from upper management.

      Of course record companies, or anyone, need to pay to get their products placed!

      The mechanism is already in place, you may have heard of it. It's called advertising. Bribes and graft are anti-competitive shortcuts, beneficial only to record companies and station owners, not the public who actually own the airwave spectrum.

      A final aside, I'm so tired of posts that posture acquiesence in the face of dishonesty as "tough minded" or "realistic". It's defeatism, pure and simple.

    21. Re:What are the Odds? by Boulder+Geek · · Score: 2
      Actually, artists DO get paid if the record makes money or not. Your point is just silly. Go do some research. Start here [state.tx.us] and learn a bit about recording contracts.

      The artist gets a loan regardless of whether the album makes money or not. This is not the same thing as getting paid, not by a long shot. And the artist starts out even further in the hole once promotions are taken into account, as those costs are recouped from royalties.

      Furthermore, I am highly dubious on the figures the record industry brings up. Why should we trust the books of any label more than we trust the books from a movie studio or an energy trader.

      --
      A well-crafted lie appears unquestionable - Dama Mahaleo
  33. Missing Link for Online Tonight by Alien54 · · Score: 3, Informative
    --
    "It is a greater offense to steal men's labor, than their clothes"
  34. Re:Unpopular opinion by Dr.+Evil · · Score: 3, Interesting

    A payola-free system is inherently unstable, it relies on the record companies to simply never offer payola to a radio station. A payola-free system is better for the whole music industry. So why don't we have this better payola-free system?

    The incentive is huge to be the first to start offering payola to radio stations in a payola-free system.

    That is where legislation might not be a bad thing, it can stabilize a payola-free system by creating strong disincentives to offering payola.

    An alternative however might be for labels to forbid stations from playing their music if the station accepts payola... but that takes guts. Still, the labels are not as powerless as the article indicates.

    (I don't think the above is a troll, I don't know why it got modded down)

  35. why fsck indie and online radio? C o n t r o l ! ! by tapiwa · · Score: 2

    The music industry is really dumb. They shoot their foot one one hand and complain about it with another.

    I think their biggest problem, is that they would like to control the entire industry from production to sales. Payola means they cede some of that control to the radio stations.

    If they were really against payola, and appreciated that airplay is good, they would not be trying to shaft internet radio stations with ridiculous per song charges.

    1. They know that they are unlikely to be able to dictate to Joe Indie what to play on his station, unless they are charging him silly money for the privilege of promoting their songs, and can use these exhorbitant fees as a bargaining tool.

    2. With CC, they are finally faced with a bully as big as they are, who can tell them to pay up if they want their song played, or shut up and fsck off.

    If the music was good, the whole issue would be moot. At the end of the day, its all about who controls what the public hear and subsequently buy (hard to buy something you haven't heard)

    When they lose this control, they lose their ability to extort terms from musicians. In the past, Radio Dons (mafia style) would have been able to make or break a musician. Now Clear_C has that power.

    If you are a musician, who do you sign your soul away to huh??

    --

    Live today. Tomorrow will cost a lot more!

  36. Re:Unpopular opinion by Reality+Master+101 · · Score: 3, Insightful

    Would you want every commercial radio station gathering together and agreeing only to play paid advertisements and no music?

    Think about what an absurd statement that is. The whole point of advertising is for people to listen. You seem to think they if they could, they would be able to sell all 24 hours of radio time to advertisers. How much do you think they would sell if nobody listened?

    Payola should be limited in a similar fashion because I shouldn't be forced to listen to music that a record company wants me to listen to on *my* airwaves.

    But you're not "forced" to listen to anything. Maybe I just don't have the correct "entitlement" attitude, but I just don't care what is put on "my" airwaves. If there is something worth listening to, I listen. If there isn't, I don't and do something else.

    If people would just stop bitching and turn off the radio when you don't like the music, then all this will stop.

    --
    Sometimes it's best to just let stupid people be stupid.
  37. Re:This is funny by Amazing+Quantum+Man · · Score: 2

    No, no. You've got it all wrong. Monopolistic practices are supposed to *MAKE* money for the RIAA. If they don't then they're Evil(tm), or Piracy(tm), Unamerican(tm), or illegal.

    If it helps the RIAA, then it's a Good Thing(tm).

    This lesson brought to you by the number e.

    --
    Fascism starts when the efficiency of the government becomes more important than the rights of the people.
  38. Conversation between two label execs by namespan · · Score: 5, Insightful

    exec #1: Boy, who would have thought our payola efforts would have come back to haunt us like this?

    exec #2: Not me! Sure miss the old days when a smaller amount of our billions bought way more influence.

    exec #1: This whole consolidated radio network thing stinks. I wish we could just get rid of radio.

    exec #2: But we NEED radio to keep distributing free music so people will want to buy CDs!

    exec #1: I know. I just can't get around that. If only there were some other avenue for distributing our music freely so that people could listen to it and decide they want to buy it.

    [silence]

    exec #2: Well, the good news is that we've managed to successfully shut down Napster and some of its ilk. At least we'll have more money from those sales we would have lost to make the payola!

    exec #1: Maybe we could sue Clear Channel, or lobby congress for a new law that would favor us! You're brilliant, #2!

    --
    Libertarianism is rich wolves and poor sheep playing gambler's ruin for dinner.
  39. Re:Unpopular opinion by bugg · · Score: 2
    Think about what an absurd statement that is. The whole point of advertising is for people to listen. You seem to think they if they could, they would be able to sell all 24 hours of radio time to advertisers. How much do you think they would sell if nobody listened?

    I don't think they would if they could. But if they could, they would certainly put more advertising on than they do now- they push the advertising envelope already and most everyone puts up with it- and considering it is difficult to measure how many people are listening, they would continue to sell advertising even if they halved the ratio of content to advertising today.

    Maybe I just don't have the correct "entitlement" attitude, but I just don't care what is put on "my" airwaves.

    Some of us do. As an amateur part-time radio DX'er, the content of the spectrum matters much to me. If they're going to crowd the bandwith close to home, it better be with something that at least some people enjoy- otherwise they should get off the spectrum and let us attempt to tune in something that is interesting. The spectrum is limited and publically regulated. It should be used in the way that's most beneficial to everyone, not benefical to the few's pocketbook.

    --
    -bugg
  40. Re:this is cracked.... by scott1853 · · Score: 2

    The ClearChannel station I listen to is The Nerve 95.1 out of Rochester, NY. I don't mind the ads so much, but I can't stand the neverending playing of Guns N' Roses and Pink Floyd. Actually, over 50% of what they play seems to be from bands that aren't together anymore. Is it cheaper to play songs that are from extinct bands?

  41. Re:Unpopular opinion by bugg · · Score: 2
    But there are a limited number of alternative radio stations to listen to. This isn't internet radio where anyone can open up a radio station and begin competing. When it's only one station out of many that's playing crap, ok, don't listen- when it's all of them because of payola, something should be done.

    You're basically arguing that we should be content to give up radio and listen to something else because of the actions of a few companies and the inaction of the government. Hell no. I love radio for the sake of radio- it's a beautiful hobby from the electronics, physics, and practical standpoints. We have total control over what we listen to, but we don't have full control over what we listen to on the radio- and radio is like air.

    Analogy: Radio is oxygen. A company is taking all the oxygen out of the atmosphere. You're telling us to go find our own oxygen, because the government shouldn't be regulating commerce. I don't think so.

    --
    -bugg
  42. Re:CARP compromise designed to stifle sm. 'net rad by InspectorPraline · · Score: 3, Interesting

    I have an article on the same topic submitted but undecided upon - and from the way I read things, there's some other shady business practices happening in addition to the things you mentioned -- Cuban goes on to state that he had worked with Yahoo to undercut the royalty payout as well by using multicasting and then only paying royalties based on the single stream being broadcast, and forcing those webcasters who needed percentage-of-revenue rates to subsist and were bound and determined to stay on the air to pay fees to Yahoo to have their material broadcast.

    This whole mess just reeks of Mafia boss tactics. You pay us a "protection" fee, and we'll make sure your bandwidth doesn't get cut off.

    Oh, and for a good read on the whole "media control" thing, check out The Media Monopoly by Ben Bagdikian. It was written in the 80s, but has been updated since to include new mediums of communication. Very interesting read.
    --

  43. Allow me to illustrate... by sterno · · Score: 2

    I should have clarified that I was intending for this to be from the perspective of the record labels, not the artists (since the record labels are the ones paying out these $250L-$1M fees).

    I, as a record label set up a webcasting site. I broadcast a number of channels depending on the variety of music I wish to promite. All of the channels would exclusively feature artists on my label, thus costing me zero to broadcast in royalties.

    There would certainly be a cost to set up and maintain this service, but if you distribute that cost over the cost of promoting all of those artists, it does provide a substantial cost savings. Perhaps not quite zero but substantially cheaper than the fees that clear channel is wanting.

    The problem, of course, for the labels is that this approach is untested and thus risky. The record labels abhore risk.

    --
    This sig has been temporarily disconnected or is no longer in service
  44. Reminds me of a They Might Be Giants song... by colmore · · Score: 4, Insightful

    Hey, Mr. DJ, I Thought You Said We Had a Deal:

    I could never sleep my way to the top
    'Cause my alarm clock always wakes me right up
    And since my options had been whittled away
    I struck a bargain with my radio DJ
    I said I'd like this song to be number one
    He said "I'd really really like to help you my son"
    And then I knew that I would have him to thank
    Because he asked me how much I had in the bank

    He said to think long term investment and
    That all the others had forgiven themselves
    He said the net reward would justify
    The colossal mess they'd made of their lives

    He said the record wouldn't have to be hot
    And no one ever seemed to care if it's not
    It would depend on something else that I've got
    And that the other ones who'd given it a shot
    Had seen a modest sum grow geometrically
    And then they had forgiven themselves
    Because the net reward had justified
    The colossal mess they'd made of their lives*

    Hey Mr. DJ, I thought you said we had a deal
    I thought you said, "You scratch my back and I'll scratch your record"
    And I thought you said we had a deal

    Well, I told you about the world (its address)
    I wonder when they're gonna clean up the mess
    You know the rabid child is still tuning in
    Chess piece face's patience must be wearing thin
    Because they haven't played this song on the air
    Not that anyone but me even cared
    And the Disk Jockey has moved out of town
    The district courthouse says he's nowhere to be found

    He said to think long term investment and
    That all the others had forgiven themselves
    He said the net reward would justify
    The colossal mess they'd made of their lives

    Hey Mr. DJ, I thought you said we had a deal
    I thought you said, "You scratch my back and I'll scratch your record"
    And I thought you said we had a deal

    --
    In Capitalist America, bank robs you!
    1. Re:Reminds me of a They Might Be Giants song... by jamie · · Score: 2, Funny

      Did you subconsciously read the dept. line, or is this a case of great fans thinking alike? :)

    2. Re:Reminds me of a They Might Be Giants song... by colmore · · Score: 2


      thinking alike...

      ah to be 16, driving around in my dad's car, yelling every word off of the first two albums at the top of my lungs.

      I don't want the world... I just want your half.

      --
      In Capitalist America, bank robs you!
    3. Re:Reminds me of a They Might Be Giants song... by colmore · · Score: 2

      Mmmm hmmm... that's very interesting... yes, let me talk to my people and get back to you on that. You should receive a letter from the Department of Screw You, Nobody Cares What You Think sometime next week, OK?

      Have a nice day. Goodbye.

      --
      In Capitalist America, bank robs you!
  45. Maybe we could take over the system... by AugstWest · · Score: 2

    ...and improve radio at the same time.

    If we got organized and all chipped in the cash, maybe we could PAY the radio stations to stop broadcasting certain crap.

    Maybe we could, say, limit classic rock stations to only playing Zeppelin 12 times a day, or possibly even rid the universe of Britney Spears "music" -- then she'd have to be more honest with us and actually launch her porn career.

    We could set up a voting system and a paypal account, and utilize micropayments and public opinion to pay the stations not to play this crap.

    It could work, I tell you....

  46. Re:Unpopular opinion by MxTxL · · Score: 2
    10,000 is peanuts.... spread over 10 years, that's one thousand a year. If you compare that to the advertising revenue that the radio stations generate (and not to mention the whole payola scam) that's hardly a blip on the station's radar. It's practically free. I'm sure they spend more on promoting one event.

    Also, 10 years is a LONG time to be guaranteed a nice revenue stream, and the fact that they can renew it (and it doens't go up for auction or they have to compete to keep it) means that it IS, pretty much, a free lifetime license.

    Broadcast television frequencies, for example, are worth BILLIONS. But the FCC just sort of gave them away to the networks a long time ago. It's just not right that consumers now have to squeeze their various new electronic devices into just a narrow spectrum.

  47. Re:Unpopular opinion by HiThere · · Score: 2

    Would you want every commercial radio station gathering together and agreeing only to play paid advertisements and no music?

    Considering what I have heard on any recent time I've listened to the radio:
    And this would be different how?

    --

    I think we've pushed this "anyone can grow up to be president" thing too far.
  48. Re:Unpopular opinion by SirSlud · · Score: 2

    how the hell is a market considered free when content producers pay off content distributors to limit (yes, LIMIT) the selection of what they play?

    > No one is "owed" access to my ears.

    Calling Mr.Stupid. Of course nobody is 'owed' access to your ears. But guess what? You won't stop using them. They are there. And sometimes, you pay money to someone for what they put in there.

    All that is well and good, but its not much of a free market unless I have a moderately fair opporunity to get near your ears. As it stands, large companies are bribing other large companies to make sure that when your ears are being "accessed" (you dont have to make the concious effort to open them up - they tend to work 24/7, while you're at work, in the store, etc, etc) by pre-selected goods.

    This is the opposite of a free market. The way you talk, nothing on this planet is unfair, because clearly "the market" (or "God", as some people like to think of it as) would fix it if it were. What a broken and apathetic way of looking at things.

    --
    "Old man yells at systemd"
  49. you know.. by geekoid · · Score: 2

    ..I understand our interest(as a comunity) with the RIAA and how they go after copying, p2p, etc.. but does this article really belong on /.?

    yeah, I know I don't have to read it, but I thing that ,in the past, /. has struck a nice ballance between technology, and the political aspects of technology. This article has nothing to do with technology at all.

    I just don't want /. to become another 2600.

    --
    The Kruger Dunning explains most post on /. http://en.wikipedia.org/wiki/Dunning%E2%80%93Kruger_effect
  50. Now the shoe is on the other foot! by Arcturax · · Score: 2

    So the RIAA complains at how much if costs to get Radio stations to play a song, yet they want to force internet broadcasters to pay THEM to promote their songs?

    Before they may have been able to let internet radio provide them with free promotion of a single or even pay them a small tithe to ensure their song got played. Yet instead they attack their last hope against the radio stations and antagonize them. So now even if they stopped trying to push the fees, I doubt any of these stations would be willing to help them out anymore.

    The RIAA, by effectively removing themselves from the competition on internet radio, ensure now that non RIAA artists will only be played on the internet now. See my sig for a really cool station which plays only non RIAA music. They are gladly thumbing their noses at the RIAA and the labels they are working with are more than happy to allow them to play for free because they know it promotes their CD sales without them having to go through the RIAA or Clear Channel. That is the future of music. The RIAA dug their own hole here and then made it so deep they can't hope to climb back out of it. I hope they have fun rotting in it.

    --

    --Won't that be grand? Computers and the programs will start thinking and the people will stop. - Dr. Walter Gibbs
  51. Here in lies the problem by interstellar_donkey · · Score: 2

    From the Salon article:

    Clear Channel programmers deny they would ever tamper with what goes out over the airwaves in order to make a buck.

    That strikes me as odd. I always thought the purpose of setting up play lists was to provide a mix of music the audience would like so you could make a buck.

    But aparently, play lists don't mean much in the grand scheme of things, when you have a near monopoly in a market that does'nt easily allow new entrys.

    --
    The Internet is generally stupid
  52. With all the whining about "de-regulated radio"... by NotesSauceBoss · · Score: 2, Insightful

    ...why don't you people observe that while radio *ownership* was deregulated, radio *broadcasting* is as tightly controlled as ever.

    Setting up a local FM radio station has been cheaper for the last 15 years than most internet-based radio today. I broadcasted pirate FM radio in junior high-school using a rig that cost me less than $100.

    Why can four companies control 60% of the radio market? Because the FCC has established extremely high barriers to entry. So new radio stations require investments of millions of dollars. Withour regulation on ownership, but with high barriers to entry, oligopoly is inevitable. It's microeconomics 102.

    'Net radio and sat radio are good paths out, but we could also see significant improvements in radio diversity by simply allowing localized homesteading of frequencies without "broadcast purchase" policies taken by the FCC now.

    Imagine an open-ended cooperative of home-based rebroadcast stations on an FM frequency that relayed an internet radio station. Imagine being able to tune your home broadcast station to a 'net radio source for 20 hours a day, then come home and do your own show.

    Before people start screaming for "trust-busting" of Clear Channel, how about screaming for deregulation of frequency allocation? I'd love to see how long the payola scheme would last in a world of nerds with $100 FM broadcast stations doing a relay of Radio Free Slashdot.

  53. Re:The music industry is one giant mess. by ajm · · Score: 2

    I think the quote should be "Government of the People, by the Corporations, for the Corporations must perish from the earth."

  54. Re:Genuine question... by bje2 · · Score: 3

    from M4 Radio: all indie music all the time

    Q: What is Indie Music?

    A: Any band or a style of music that is either not yet signed to a major music company or if they are signed to a small independent label.

    --

    "Facts are meaningless. You could use facts to prove anything that's even remotely true." - Homer Simpson
  55. Radio? What the heck is Radio. . ? by Fantastic+Lad · · Score: 2
    Oh yeah. . .

    That annoying sound-maker box which, (on all the stations where this might be an issue), spews the following percentages:

    35% Irritating as hell advertising.
    25% Irritating as hell DJ chatter and monster truck promotions.
    10% Music, (if you're lucky).
    30% Over-produced, dumb-ass noise, (best suited for attention-deficit hampster people who are permanently wrapped up in an artificial state of love-related angst.)

    --And nearly all of which is mind-programming nonsense anyway, designed to fill people with misery-inducing behavior patterns. And these days it's so obvious. "Hit me baby, one more time." --I mean, for crying out loud!


    With a very few exceptions, most stations which run on the commercial system are pretty crumby. Those stations which don't suck are run by sensible people who don't play the payola game. Canada's CBC Radio 1 kicks major ass, has NO advertising, and won't melt your brain. Actual, "I laughed, I cried, I was informed and entertained," content. Try it, and you'll realize just how fried your brain was on that other shit.

    People don't realize McDonnald's food and the rest of the consumer crap they inhale is actually of extremely poor quality until they treat themselves to something good for a few weeks. --The other day, out of a desperation for fluids, I drank some Coke for the first time in over two years and was dumbfounded by just how awful it tasted. And I'm not just saying that; The stuff actually left a powerful petro-chemical after-taste in my mouth for half an hour. I couldn't believe that I used to consider the stuff a treat when I was younger. Honestly; have the changed the formula, or something?


    -Fantastic Lad

  56. Re:Unpopular opinion by SirSlud · · Score: 2

    Well, if 30% of all humans are supporting the payola-type of radio (and the rest have tuned out), fuck those 30 percent. 70 percent are ready to have their air waves back.

    Your erroneous assumption is that its more profitable for the company to cater to the majority of consumers rather than a small percentage. WRONG! (Ask any marketer - the crowd you wish to please is usually quite small out of the potential customers .. you go after your heavy users, or in the case of radio, consumers that you can cross-market to other mediums ... ) Radio companies could give less than a fuck about meeting the needs of 'the market' - if I tune out, I'm not a lost customer, I'm just a guy who wouldn't have made them much money had I been listening anyways .. cause I'm capable of making my own decisions and thinking for myself, certainly not the demographic you're after in a payola-pre-packaged culture market.

    Considering that the air waves are public, and that we like the _concept_ of radio (the technology), but not whats being played on it, I absolutely support getting the government to break the control these large entities have in catering to a small percentage of the population that makes their little cartel economically profitable.

    --
    "Old man yells at systemd"
  57. Re:this is cracked.... by plague3106 · · Score: 2

    That was a much better radio station before ClearChannel bought them, which if i remember was 98. The station actually had its own 'personality' and didn't sound like every other station in the country.

    Plus, it seemed like they actually cared about the commercials they played, in that there were no loud ones, or ones with some guy screaming at the top of his lungs to sell you a car.

    Of course the best part was they played mostly the rock that college people listened to (which i was when i was living in rochester).

  58. Re:The music industry is one giant mess. by Midnight+Thunder · · Score: 2

    In the UK the top 40 is based on sales of singles. The more popular the single the higher it gets in the charts. Of course the catch is that if your favourite tune is not represented by a single then it has no way of getting into the charts. This is where the album charts come in, though it is hard to tell which tracks encouraged its sale. While singles might cost a third of a price, it usually has the advantage of containing some remixes ( an evolution of the B side from vinyles ), which aren't availble on the album, and in a few cases the video version in mpeg or quicktime format.

    I am not sure whether singles would really work in north America, since a) there currently isn't much of a culture built around them and b) they are half the price of an album.

    Does anyone else know how the singles charts are caclulated in other places in the world?

    --
    Jumpstart the tartan drive.
  59. Re:Unpopular opinion by SirSlud · · Score: 2

    I think people latched on to his rather shaky use of the word 'market' - listening to some people, a market is transparent regardless of who's got what power, who's paying what, who owns how much, etc. Posts like his sound like a round about way of saying:

    "A market is free until you hold a gun to a consumers head."

    If I had infinate time, infinate capability to travel, to read, to research, etc, I might (*maybe*) start to agree. As it stands, "buyer beware" is fair to a point, but at some point we consumers have to start thinking about ourselves as that - consumers! Many of us go to work and dream up ways of fooling or influcing ourselves (or consumers like us) into acting this way or that (otherwise we wouldn't have a marketing dept, no?) ... but come home spewing over simplifications about the complexity and difficulty of being an astute and well informed consumer. I know how to choose something off the menu, thank you very much .. I am just not cool with that menu being selected by a single party with vested economic interests with respect to my familliarity with my choices.

    --
    "Old man yells at systemd"
  60. The future of Clear Channel by Animats · · Score: 2

    Clear Channel will probably buy their own record label and cut out the middlemen entirely. They already own concert venues, so they're into creating content now. So expect "Recorded Live at the Clear Channel Pavillion...".

  61. How The Game Is Played by nick_davison · · Score: 2
    I can't help but find myself thinking that all of the closed out net broadcasters haven't been shut out by the cost of doing business but because they weren't doing the business they were actually in.

    Yes, the RIAA screws the hell out of broadcasters but, in turn, as the article points out, the broadcasters, via the indies, are screwing the hell, and then some, out of the RIAA members. The end result is that you pay x to be allowed to play a song and get y (where y is vastly greater than x) to get it heard.

    So, if the net broadcasters had known how the game was played, the answer would be to sign up with indies and get paid handsomely for doing it.

    What about all the independant music? The net broadcasters want to play their own stuff, not corporate playlist crud? That's cool. The independant labels are complaining they can't get airtime. So, easy answer, both sides get out of the incestuous mess... The independants tell the RIAA where to stick their "representation" and release their music under a license that allows it to be played for free by the independant stations.

    Yeah, the music industry is a mess. Yes, everyone's getting screwed and, you know what, they're screwing other people back again to recoup those costs. The only apparent reason the net broadcasters and the independant labels is because they're playing the existing game badly and not making up their own ones.

    While it is messy, that's how the game is played. You either play the game, make up your own one with others who'd like to play it your new way, or go out of business. It's a shame that the net broadcasters have chosen to go out of business rather than invent their own game and tell the RIAA where to stick it.

    You know, a guy called Linus didn't like the monopoly in another field. Fortunately, he tried to change it, rather than [just] bitch.

  62. Great Points But... by Lysander+Luddite · · Score: 3, Insightful

    wouldn't the broadcaster still being paying all those rights to ASCAP, BMI etc? That'd be the back breaker for me. IF you're going to do the "pirate" radio (we have one here) I guess you're not paying the fees, but I guarantee that Powell won't let anybody on the air without paying mucho bucks to somebody.

  63. Re:Legalize Payola by sphealey · · Score: 3, Interesting
    There is one simple, effective and reasonably sound way of dealing with the payola problem - legalize it. Sounds unfair you think? Think again. As long as we accept music as an industry there will be money in it. And anytime you have large amounts of money circulating around, someone is going to try and stick their hand out. There is no business reason why it shouldn't be radio station owners wanting some of that money and that's why payola continues, despite the numerous attempts to stop it.
    Payola, or paying a placement fee, is perfectly legal in the radio industry. The radio station need merely announce prior to playing the "content" that such a fee has been paid. That was the end result of the scandal in the 1950s.

    Of course, doing so would allow consumers to make independent judgements on what they like, and why certain songs are being played. So I guess we can't have that!

    sPh

  64. Webcasters pay, radio stations get paid by Synn · · Score: 2

    So if you're a webcaster you have to pay the RIAA if you want to play their songs, but if you're a radio station the RIAA pays you??

    Oh. And after working to shut down webcasters, NOW the RIAA is bitching about having to pay radio stations to get their songs out because it's the only medium?

    Cry me a fucking river.

  65. Yea.. by TheTomcat · · Score: 2

    Like we need another keiretsu (-:

    We have a corporation similar to Clearchannel up here in Canada. The CHUM group pretty much controls pop culture here. Picture ClearChannel owning MTV.

    S

  66. Why FM radio sucks so much by Tarindel · · Score: 5, Insightful

    The general sentiment regarding FM radio these days seems to be: it sucks.

    With radio stations having to pay an increasingly large fee for each song on the playlist, it's no wonder that they play a much smaller selection of songs than they used to (say, back in the 80s).

    Clear Channel claims (paraphrasing) "We're just playing what people want to hear". However, there are several really interesting side-results of these shrinking playlists.

    First, we have to lay down some facts. The first is that fewer people are listening to the radio, period. The second is that for those who do listen to the radio, they are listening for shorter and shorter periods.

    Now let's assume you're a casual radio listener as most people are. What kinds of songs are you going to request most? Probably the ones you've been hearing recently that you like. No diversity in songplay equals everybody requesting the same thing, and everybody requesting the same thing means radio stations play the same crap over and over again (which is fine by them, since they don't have to pay out extra cash for more songs on their playlist). In a sense, it's cyclic: people request what they know, and stations play what they request.

    From one perspective, Clear Channel is correct when they say they are playing what people want to hear. But that's taking a small picture view, because when taken in a larger context the statistics really are supporting the fact that people don't want to hear the radio at all! Ask any radio listener what the biggest problem with radio today and he'll tell you lack of variety. Thus, the sucking. And the more sucking there is, the fewer people will listen.

    Here's another interesting thing that I haven't seen discussed: How this affects CD sales. Let's consider 2 scenarios. In scenario A, the radio station is playing 60 tunes in regular rotation and a few classics, and replace songs in rotation at the rate of 10 per week. In scenario B, the radio station is playing 30 tunes in regular rotation, plus a few classics and replace songs in the rotation at the rate of 2 per week. Which station is going to generate more CD sales?

    Let's assume (for the sake of simplicity) that each station has exactly 1000 listeners. Each listener has a 1/10 chance of liking a song enough to buy a CD. Each listener is also going to listen for 120 songs in week 1, and 120 songs in week 2.

    The people listening to station B hear each song 4 times during each week. They are exposed to 32 songs (30 from week 1, plus the extra 2 rotated in during week 2), and buy an average of 3.2 CDs due to this. 3.2 * 1000 = 3200 CDs sold.

    The people listening to station A hear each song twice during each week. They are exposed to 70 songs, and buy an average of 7 CDs due to this. 7 * 1000 = 7000 CDs sold.

    This, of course, is a very simplified case, as it doesn't take into account disposable income, but neither does it take into account song burnout (when you like a song but are so sick of it you never want to hear it again), but I think it makes it's point. Oh, and in case you didn't get it, radio stations today are like station B.

    As a result the music labels complain that people aren't buying music and point their fingers at Napster, I don't buy it as the sole reason. I point my finger at station B and say "people are listening to the radio less than ever and being exposed to less music than ever. What did you expect!?"

  67. Re:Unpopular opinion by Reality+Master+101 · · Score: 2

    There is a simple way to discourage payola. [... draconian punishment]

    There is a simple way to discourage jaywalking: If you are convicted of it, then you are put to death.

    I think a lot of you people need to get a little more balance in your lives. Got news for you: what songs radio stations play is just not that important in the scheme of things.

    --
    Sometimes it's best to just let stupid people be stupid.
  68. Re:Statement from Senator Russ Feingold by Mark+Bainter · · Score: 2
    It isn't just about who's talented, and who deserves to be played. It's about a shakedown, and that's just unacceptable, Mr. President, for the industry, for the artist, and for all of us as who listen."

    So, don't go. Don't listen to those stations. -shrug- You, as the consumer, make choices that affect that business.

    If you weren't willing to pay that much to go to a concert, they wouldn't be charging that much. If nobody goes, they won't make any money. But, they know that people love to whine about these things, but in reality, you'll keep listening to the station,and you'll keep buying tickets.

    --
    "No nation could preserve its freedom in the midst of continual warfare."
    --James Madison
  69. Tell Rusty: by sulli · · Score: 2
    1. I'll subscribe (and many others will) TODAY to Groove Salad; and

    2. SomaFM and others MUST write contracts for their indie and unsigned artists to distribute their music at reasonable or zero royalties. I understand that he has a day job - maybe he can find a pro bono lawyer to develop a standard contract for the various labels who, like him, would like nothing better than to fuck the RIAA with a rusty spike.

    --

    sulli
    RTFJ.
  70. Support Local & Indie Acts by nathanm · · Score: 2
    There's a quote in the 2nd Salon article that disturbs me:
    Without blanket radio airplay it's almost impossible to launch a hit single, or sustain a career, in the music business today.(emphasis added)
    So even Salon has bought into this RIAA lie. There are literally thousands of musicians making a living touring & playing to local audiences, without any airplay.

    My current favorite band, Gov't Mule, can hardly buy airplay, yet they've been pretty successful. It helps that they let people record their shows & trade the recordings online.

    Here in Minneapolis, there's a thriving local music scene. The only airplay most of the local acts get is on a few weekly, hour long shows on some stations that showcase local music.
    1. Re:Support Local & Indie Acts by nathanm · · Score: 2
      My local Oldies-Rock station plays them several times a week that I know of, and probably more often that that!
      What station, and where? I've been part of the Mule's radio request program, the Gov't Mule United Airplay Movement, sending letters to several Minneapolis-St Paul area radio stations. Unfortunately, I have yet to hear them on the radio. The problem is that 3 of the biggest radio stations are owned by ABC (Disney) and most of the rest by either Clear Channel or Infinity Broadcasting.

      Gov't Mule has a pretty solid fanbase here too. They've played here at least once a year for the last 6 years or so. I've seen them 4 times, in fact I'll be at the Allman Brothers Band & Phil Lesh & Friends concert this Thursday (with Warren Haynes).
  71. Re:San Antonio, TX -- Live music capital of Texas by dcigary · · Score: 2

    Yes, but at a venue where the concessions are vastly overpriced, parking sucks, and where THEY WONT LET YOU BRING IN YOUR OWN WATER.

    August, 2001. Willie Nelson picnic. 102F outside, and they were allowing each person to bring in ONE 16oz bottle of water. Otherwise, you were free to buy their bottled water, or refill from the ONE water fountain that is available to the public. Hmmm. Seems CC is finding other "Alternative Revenue Streams" in their live performance venue as well.

    --
    ...my Karma ran over your Dogma...
  72. KEXP rocks with CD-quality audio streams! by cpeterso · · Score: 2


    I have to give a shout out to Seattle's KEXP , the University of Washington college station. KEXP (was KCMU) is an excellent college music station with a huge variety of music, but lots of indie rock and some techno/beats at night. They are 90.3 FM in Seattle, but they also stream live on the internet. They support MP3, RealAudio, and WMA. They even have an uncompressed, CD-quality (better than FM quality) audio stream.

  73. Nobody's gonna let go of money volutarily by xenocide2 · · Score: 2, Insightful
    Its a disservice to shareholders, which lately is an offense punishable by firing. Clear channel is in a bind; if they refuse pay for play they stand to lose a significant sum of money. If they continue, then their survival is in the hands of the labels. Which is actually better for them than it sounds. Dropping the indies has been tried. It didn't work terribly well. It would be a huge risk to attempt to fund a viable artist without airplay, which is what dropping indies amounts to.

    Basically, as long as its legal, the Top 40 will be bought and sold. Not that the abolishment of the practice will get good artists like Liquid Tension Experiment on the chart; the radio demands a certain format to pay for itself.

    --
    I Browse at +4 Flamebait

    Open Source Sysadmin

  74. Re:Genuine question... by Klaruz · · Score: 2

    Too bad it's indie music broadcast in a non-open format. (Windows media) It doesn't seem to work very well on my indie os.

  75. Re:Would love to know which company that was... by The+Cat · · Score: 2

    My inductive proof is better than your inductive proof, eh?

    The amount of money wasted increases exponentially in proportion to the size of the company's revenues.

  76. This will all be rather pointless soon by Edmund+Blackadder · · Score: 2

    Because noone will listen to radio.

    Clear channel declared, like every one else that anti monopoly restrictions keep them from truly serving their customers.

    Now that they have a virtual monopoly radio sucks really badly, and fewer and fewer people listen.

    I am sure clear channel execs are blaming internet filesharing for all of this as we speak.

  77. Re:With all the whining about "de-regulated radio" by Edmund+Blackadder · · Score: 2

    so how is this gonna work?

    If they give complete deregulation all the signals will destroy each other, and clear channel would make sure theirs are the strongest.

    Ifthey still somwhow sold licences clear channel would buy them all.

    Maybe they can institute some kind of bandwidth sharing, but that usually requires modified radio recievers. So every one will have to buy a new car radio.

  78. it doesnt work exactly like this by Edmund+Blackadder · · Score: 2

    file sharing is not a perfect alternative of radio because there the record companies cannot controlwhat you hear.

    They can makeit avilable, yes but it is your choice to dl it and lsiten to it, they cant force it on you.

  79. Re:Statement from Senator Russ Feingold by X · · Score: 2

    Yeah, but the deal is the airwaves are owned by the public, and licensees of said airwaves should be serving the public good. If you take the radio stations out of the equation, then who the hell cares. However, they are very much part of the equation.

    --
    sigs are a waste of space
  80. I agree by Edmund+Blackadder · · Score: 2

    that 90% of records dont make money claimis complete bs.

    How expensive is to manufacture a damn music cd anyways. Its pretty cheap considering its being made by a huge volume repeat player.

    And those cds are being sold at costs 20 - 40 times their value.

    Then how do all those albums fail to make money after selling thousands of copies? Well its easy - its what economists call rent seekers - various execs, agents, promoters, advertising execs, etc that have secured nice little chokepoints in the distribution chain and demand payment whenever something passes trough them.

    So there you have it. The whole distribution chain is due for a shakeup. Hopefully the internetwill help with that.

  81. Re:100% marketting - Oh, the silliness by i_am_nitrogen · · Score: 2

    What would be so bad about that? Advertising is a self-propagating wave.

  82. Re:Would love to know which company that was... by sphealey · · Score: 2
    Since this was a private conversation I can't provide more details (and have disguised the story a bit) so take it for whatever value you put on anything you find on the Internet ;-(

    However, if you would like to know more about how content providers calculate "profit" the best place to start is Art Buchwald's Coming to America case. Terms of the settlement were never disclosed, but for a movie studio to even offer a settlement says a lot.

    sPh

  83. Re:Now you're just being silly by jedidiah · · Score: 2

    "Stop being a consumer because it's all crap."

    How does such a conclusion imply the use of critical thinking? What value would such a course of action serve? If you choose to stop being a consumer, your just going to be classified as a kook and ignored. You will be effectively giving the industry over to the Robber Barons while minimizing the effect of your own buying power.

    While it's nice to be arrogant enough to think that your prefered product will be able to plod along successfully without any reasonable chance at good promotion. Such assumptions are naieve and ultimately counterproductive.

    How do you expect quality product to remain on the market when all of the best promotion venues are choked off in one way or another?

    --
    A Pirate and a Puritan look the same on a balance sheet.
  84. Re:Unpopular opinion by jedidiah · · Score: 2

    Hardly. Socialism and Trusts are logically equivalent. A little bit of the former is by no stretch of the imagination worse than the latter.

    It doesn't matter if it's a beaurocrat or a bean counter: a command economy is a command economy.

    We should pit different powers against each other and weaken them both in the struggle.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  85. Re:Unpopular opinion by jedidiah · · Score: 2

    So what?

    Why do you care?

    We aren't even talking "real people" here.

    We are talking about legal constructs created specifically to SCREW YOU and avoid all responsibility for the consequences. You should really have no sympathy for artificial persons.

    The corporate death sentence might be a bit extreme for the first offense of corporate bribery, but such a situtation would hardly be comparable to executing a person for jaywalking.

    What merchants put on their shelves is of considerable importance in the scheme of things. In capitalism, it is of paramount importance for all of us. Trivialize that diversity, ignore it, and you will end up with something dreadfully similar to communism.

    I believe that you can still emmmigrate to Albania if you want that kind of economy.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  86. Re:Ask Stephen King how to NOT do it. by jedidiah · · Score: 2

    Not everyone NEEDS to.

    The only thing that is really relevant is what models work as better, or nearly as well as the old models. The fact that a particular author is losing sleep at night because he now knows that people are consuming his work without paying is simply irrelevant.

    Even in old media, there are plenty of methods to avoid payment for consumption. Infact, we're discussing one right now.

    --
    A Pirate and a Puritan look the same on a balance sheet.
  87. Re:The music industry is one giant mess. by Guppy06 · · Score: 2

    "I've heard that the music industry is totally 0wned by the mob but I'm not too sure about this. If mob-0wnership is the case the situation just won't change."

    Actually, I think mob ownership of the music industry would improve things. The mob cares enough about their customers to want to break their kneecaps. Corporations don't give a damn one way or the other, they're too busy licking the boots of the investors.

    (No, I didn't plan on making references to my journal entry, it just came out that way. :) )

  88. Re:Unpopular opinion by Reality+Master+101 · · Score: 2

    On the one hand, you say...

    We are talking about legal constructs created specifically to SCREW YOU and avoid all responsibility for the consequences. You should really have no sympathy for artificial persons.

    This whole anti-corporation thing is just a straw-man. A corporation is just a container owned by REAL PEOPLE. You aren't just hurting an "artificial person".

    Then on the other hand, you say...

    and you will end up with something dreadfully similar to communism.

    You do realize we are talking about the government seizure of assets, right? REAL PEOPLE own corporations. Sending management to jail (who might not even be shareholders) is a completely different issue from the government destroying the value of the corporation.

    If you're pro-capitalism (as you seem to claim), then you should be pro-corporation. Corporations are VITAL to a healthy capitalistic society.

    --
    Sometimes it's best to just let stupid people be stupid.
  89. Senator Russ Feingold by subsolar2 · · Score: 2

    Is one of the more clueful senators around ... I'm glad that I'm from wisconsin so I can continue to vote for him in elections. He was also against the patriot act being the only senator to vote against it, at least he managed to get an amendment to limit it to 5 years (I believe) at least.

  90. Re:My god... by rizzo · · Score: 2

    Ahhh responding to trolls. There is nothing quite as enjoyable.

    By the way, my friend, the word is spelled "l-o-s-e-r", only one o. Unless you really do think I am one who "looses" things.

    Keep up the good work!

    --

    "More organs means more human." - Zim