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STATEMENT OF
COMMISSIONER DEBORAH TAYLOR TATE
Re: CBS Radio, Inc., File No. EB-06-IH-1109, Order
Re: Citadel Broadcasting Corporation, File No. EB-06-IH-1108, Order
Re: Clear Channel Communications, Inc., File Nos. EB-05-IH-0059,
EB-05-IH-0144, Order
Re: Entercom Communications Corp., File No. EB-05-IH-0033, Order
Coming to the Commission, as I do, from Nashville, Tennessee - home to
more than 80 record labels, 180 recording studios, and some 5,000 working
union musicians - I have been particularly concerned by allegations that
payola, or "pay for play," practices are prevalent in the commercial radio
industry. I am pleased that, in consideration of the conclusion of our
investigation into these allegations, each of the four companies has
agreed to make significant contributions to the U.S. Treasury and
committed to implement consequential business reforms to ensure full
compliance with our rules.
Artists and radio listeners should be even more pleased, however, by the
voluntary, private agreement crafted by the companies and the American
Association for Independent Music, a trade organization representing the
independent music sector. Pursuant to this creative accord, born of good
faith negotiations, the companies have agreed in principle to basic
guidelines, "rules of the road" covering future interaction between their
stations and record labels, which concentrate on equal access and
transparency. They have also committed to provide 8,400 half-hour blocks
of airtime to independent music, to the benefit of all. I challenge other
radio companies to follow their example.
Federal Communications Commission FCC 07-27