Monday, April 10, 2006

Payola inquiry chills radio playlists

Payola inquiry chills radio playlists

N.Y. official's action targeted bribery but has discouraged programming of new songs

By Charles Duhigg
April 9, 2006
Last summer, before New York Attorney General Eliot Spitzer took on the music industry over pay-for-play allegations, the man who chooses songs for the Los Angeles station KKBT-FM started each week enthusiastically brainstorming about what new tunes to add to his playlist.
Today, KKBT program director Tom Calococci still brainstorms. But he feels pressure to take fewer creative risks.
"No programmer wants to draw attention by choosing songs too far outside the mainstream," said Calococci, who says fear of regulatory scrutiny has made radio executives less willing to play emerging bands. Calococci still plays new music, he said, but "Spitzer has put a chill on everything."
Spitzer's inquiry, which alleged that music companies illegally paid radio programmers to play certain songs, was intended to make the airwaves more of a meritocracy. Without pay-for-play, Spitzer argued, consumers would hear the music that programmers liked best, rather than tunes that the major record labels bribed disc jockeys to air.
But Spitzer's crusade might be having the opposite effect. Many programmers say that fear of regulatory scrutiny has scared them into choosing fewer new songs for radio play. Instead, stations are sticking to older, more tried-and-true tunes that seem less likely to prompt speculation that money changed hands.
Indeed, research shows that listeners are hearing fewer new songs on the radio today than they were a year ago. In the first quarter of 2006, "active rock" stations added 23 percent fewer new songs to their playlists than during the same period in 2005, according to trade publication Radio & Records. Pop stations added 14 percent fewer songs, additions on urban/hip-hop stations dropped by 16 percent and the number of new songs played by "adult contemporary" stations fell by 17 percent.
Those dips occurred even as the number of new album releases increased, according to Nielsen SoundScan.
"These are really big drops," said Cyndee Maxwell, a Radio & Records executive who helped survey more than 867 radio stations. "I've never seen decreases that big."
In the wake of Spitzer's investigation, radio companies have launched internal inquiries and, in instances of wrongdoing, fired and reprimanded scores of programmers. Almost every radio chain has instituted new policies regarding gifts and payments. Also, the Federal Communications Commission has launched its own investigation to determine whether radio companies should lose their broadcast licenses if evidence of corruption exists.
That has left many programmers with the impression that if their names are so much as mentioned in connection with pay-to-play, their jobs will be at risk.
More than a dozen radio programmers interviewed for this article - almost all of whom requested anonymity because they feared that discussing pay-for-play would endanger their jobs - say the slowdown in airing new songs isn't official policy. Rather, it is a precaution individual programmers are taking to avoid raising suspicion about their motives.
"I don't want anyone to look at my playlists six months from now and speculate about why I added a particular song, when our competition didn't add it," said one programmer. "People have been fired for less."
That sentiment is typical, say industry insiders.
"There is an overall fear among programmers that I've never encountered before," said Steven Strick, who compiles data on rock stations for Radio & Records. "These investigations by Spitzer and the FCC cast suspicion on almost everything. How stations choose music has changed in a fundamental way."
To be sure, the recent shift is part of a broader trend toward homogenization and repetitive airplay that has been under way for the past decade as station ownership has consolidated. But programmers say those shifts have accelerated in the past six months, after Spitzer's investigations were disclosed.
What's more, stations are less willing to participate in legitimate promotions, such as concert ticket giveaways and contests, that are popular with listeners.
"If I want to accept 25 CDs to give away on air, I have to forward paperwork all the way up to the vice president," said Bill Weston, program director at WMMR-FM in Philadelphia, where new policies about gifts and promotions have been drafted. "The new rules take forever. It's hardly worth the trouble."
All this worries record companies and music aficionados. Radio remains one of the few media that can introduce audiences to new music and spur huge album sales. Changes in how stations choose songs directly affect which musical genres survive and how many up-and-coming bands record labels sign, say executives.
Charles Duhigg writes for the Los Angeles Times. Copyright © 2006, The Baltimore Sun Get Sun home delivery

Thursday, April 06, 2006

Ameirica's top billing Radio stations

Thursday, April 6, 2006
WLTW/New York Remains America's Top Biller

The Clear Channel AC is once again in first place among America's biggest-billing radio stations, BIAfn reports. The station saw $68.3 million in revenue during 2005, while CBS Radio Alternative KROQ/Los Angeles rolled into second place after a huge revenue gain of 11.6%, billing $67.6 million for the year. KROQ swaps places with CBS sibling News WINS/New York, which slipped to third place with an estimated 2005 billing of $60.8 million.

The overall top 10 saw little change, although Tribune News/Talk WGN/Chicago took the 10th spot as Clear Channel AC KOST/L.A. dipped from No. 10 to No. 12. "The lackluster radio business environment in 2005 did not allow for any major shifts in the lineup of the top 10 grossing radio stations," said BIAfn VP Mark Fratrik. "Even if a station generated substantial improvements in their ratings, its ability to quickly turn those larger audiences into significantly larger revenue was made more difficult because advertisers are lukewarm on radio overall."

Top 10 Billing Stations - 2005 Revenue
WLTW/New York
$68.3 million
KROQ/Los Angeles
$67.6 million
WINS/New York
$60.8 million
KFI/Los Angeles
$59.3 million
KPWR/Los Angeles
$57.9 million
WCBS-AM/N.Y.
$57.2 million
WFAN/New York
$54 million
KIIS/Los Angeles
$52.8 million
WXRK/New York*
$52.5 million
WGN-AM/Chicago
$52.4 million
Source: BIAfn. *Became WFNY (Talk) in January

Wednesday, April 05, 2006

Clear Channel offer a million to the Feds

Clear Channel offers to settle payola case with FCC
Web Posted: 04/05/2006 12:00 AM CDT
Sanford Nowlin
Express-News Business Writer

San Antonio-based Clear Channel Communications Inc. has offered to pay $1 million to settle a Federal Communications Commission probe into recording-industry payola, a company official said Tuesday.
Andrew Levin, Clear Channel's chief legal officer, said the company is talking to the commission to settle an eight-month-old investigation into whether radio broadcasters took illegal contributions from record companies to increase their play of specific songs.
"We're willing to pay a reasonable amount to put this matter behind us," Levin said. "We want to go back to focusing on our business and not on ancient history."
Clear Channel, CBS Radio, Entercom Communications and Citadel Broadcasting Corp., four of the nation's largest radio broadcasters, are in talks with the FCC to settle its probe, said people familiar with the discussions who asked not to be named.
However, those people also said at least one FCC commissioner, Democrat Jonathan Adelstein, isn't satisfied with the companies' settlement offers and wants them to pay stiffer financial penalties. A spokesman for Adelstein was unavailable for comment.
Officials of CBS Radio and Entercom declined to comment on the FCC probe, while Citadel officials were not available at press time Tuesday.
News of the talks comes as New York Attorney General Eliot Spitzer conducts a separate payola investigation.
Both the FCC and Spitzer are looking into concerns that radio stations may have taken cash and goods in exchange for increased spins of particular songs, a practice that's been illegal since the late 1950s.
Clear Channel's Levin said his company has cooperated with both probes, having turned over thousands of pages of documents.
The company two years ago cut ties with independent promoters that music labels hire to boost radio exposure so it could "avoid the appearance of impropriety." In October, it completed an internal payola investigation, firing and penalizing several employees for violating pay-for-play rules.
However, Levin said authorities have sought information predating its internal efforts to crack down on payola.
"Just because we're the largest radio company doesn't mean we have the largest violations," Levin said. "We have been a model for the industry in terms of trying to put a stop to this practice."
The FCC last fined a broadcaster for engaging in payola in 2000 when it fined Clear Channel $8,000 for not disclosing payments it received to boost airplay of a Bryan Adams song.
Spitzer has blasted the FCC for negotiating settlements with the broadcasters, on Monday saying that the move would undercut his case.
Record companies Sony BMG and Warner Music Group together have paid $15 million to settle with Spitzer, and his office last month filed a lawsuit against Entercom alleging it accepted improper payments in exchange for airplay.
Previously, Spitzer had criticized the FCC for acting too slowly on the matter.
"Any time Spitzer can get $5 million and $10 million from these record companies in his investigation, you have to wonder why the FCC would let Clear Channel pay $1 million," said Paul Porter, whose activist group Industry Ears has criticized Clear Channel and other broadcasters.
But radio-industry analysts said they're not particularly concerned about the probe or a potential settlement, adding that Clear Channel, which owns 1,200 stations, faces much larger challenges as it faces competition from satellite radio and other entertainment sources.
Settling the investigation, they add, may just be a routine part of doing business.
"In the whole scheme of Clear Channel issues, this one is at the bottom of the list," said Michael Nathanson, who follows the company for Sanford C. Bernstein & Co. in New York. "For you and me, $1 million is a lot of money, but not for them."
snowlin@express-news.net
BAHRAM MARK SOBHANI/STAFF -->spitzer -->The FCC last levied a payola fine in 2000 when it fined Clear Channel $8,000 over payments to boost airplay of a Bryan Adams song. -->
Online at: http://www.mysanantonio.com/business/stories/MYSA040506.1E.payolaprobe.3555972.html

Monday, April 03, 2006

NY Daily News Industry Ears

Stanley Crouch is a columnist, novelist, essayist, critic and television commentator. He has served since 1987 as an artistic consultant at Lincoln Center and is a co-founder of the department known as Jazz at Lincoln Center. In 1993, he received both the Jean Stein Award from the American Academy of Arts and Letters and a MacArthur Foundation grant. He is now working on a biography of Charlie Parker. Email: scrouch@ edit.nydailynews.com


Merchants of filth have worthy foe
You can't keep a good woman down, and you can't get an intelligent one to stay silent when the issue is the moral pollution of young people. One can only come to that conclusion when speaking with Lisa Fager, president and co-founder of Industry Ears, a new think tank of broadcast and music industry professionals that describes itself as "dedicated to revealing truth and promoting justice in the media." That's a mouthful. Does it mean weeping rivers over the execution of a convicted murderer like Tookie Williams?
No. Fager wants to clean up what she sees as irresponsible activity in the media, with a particular emphasis on the detrimental effects of hip hop. Her central concern is the promotion of sexual material to underage children and the way this material encourages irresponsible sexual behavior.
"You would never know," she says, "that the largest group of new HIV cases just happens to be young black women between the ages of 15 and 24. This airheaded material desensitizes them to such an extent that they do not know how to protect themselves. Besides vulgarity, there are lethal components to this problem."
Some defend hip hop as the expression of an ethnic culture on the grounds of free speech and artistic freedom - and this con sounds noble - but if these illiterates with gold and diamonds in their teeth found that reading the Ten Commandments over hip-hop beats made money, they would search the Bible for fresh "lyrics."
Fager would settle for the FCC enforcing the law - coming down, for example, on urban black radio stations that violate regulations by playing questionable material before 10 p.m. "Part of the job of the legal system," she says, "is to protect our children from predators."
Censorship is not Fager's goal, and she does not believe that merely attacking vulgar entertainers is the answer. "If NBC had shown a porno film like 'Debbie Does Dallas' at 4:30 in the afternoon, we wouldn't be going after the star of the movie, we would be going after NBC."
I think the millionaires who push this dung have met their match, because Fager is a young woman who has worked in the recording industry and knows her way around the mass media. She cannot be dismissed as a grandmother who doesn't know what's happening.
Importantly, Fager has no fear of being accused of "hating" the black lower class or trying to kill a golden goose. Those accusations may be tired, but they work on far too many black academics and middle-class black people.
"I do not believe we are supposed to sit still while young women are dehumanized, infected with HIV and abused by young men programmed to think of women as nothing but sex toys," she says. "That's immoral and cowardly."
Lisa Fager is another example of American luck. Just when we think the dogs will win out, the dog catcher turns the corner. The howls will eventually be replaced by whimpers. Originally published on April 3, 2006