Indie Label Assoc. A2IM Calls For FCC Payola Probe

Last week A2IM (The American Association of Independent Music) which represents more than 100 indie labels sent the FCC a letter urging the commission to investigate radio to see if there’s a level playing field for indies vs. the majors. The letter is particularly poignant given yesterday’s court filings against radio group Entercom as part of NY Atty. General Eliot Spitzer widening payola investigation.  Spitzer has also been very critical of the FCC’s lack of action. Some highlights from A2IM the letter:

"…One of the most serious allegations facing the broadcast industry is that radio stations engaged in business activities that made it virtually impossible for songs released by independent labels to be considered for airplay within existing formats. Independent music is booming…independent labels now make up over 27% of sales in the American music market (and about 80% of the music available to consumers—representing the broad cultural diversity of the musical landscape). Yet, somehow, music released by independents is virtually absent from the commercial airwaves…"

"…the New York AG has initiated action at the state level and has successfully garnered disclosure and settlements from two of the major recording companies so far. The associated fines are viewed by many in our sector as mere slaps on the wrists in comparison to the financial harm caused nationally…"

"It is absolutely vital that any full investigation addresses the issue of how to ensure that the vast diversity of American music has a fair opportunity to access the public airwaves."

Click below to read the full text of the letter.

I am writing today to express our enthusiastic reaction to news reports that the FCC is conducting a thorough investigation of alleged payola-like practices in the commercial radio industry. In particular, I want to offer our assistance in helping the Commission understand how these alleged practices have impacted the independent music industry.

One of the most serious allegations facing the broadcast industry is that radio stations engaged in business activities that made it virtually impossible for songs released by independent labels to be considered for airplay within existing formats. Independent music is booming—innovative programmers highlight songs released on independent labels on satellite radio, non-commercial stations and webcasts. Well over half of the releases cited in January’s Village Voice Critics Poll were released by independent labels. The marketplace is responding, as independent labels now make up over 27% of sales in the American music market (and about 80% of the music available to consumers—representing the broad cultural diversity of the musical landscape). Yet, somehow, music released by independents is virtually absent from the commercial airwaves.

While we are very concerned that many critical musical genres like jazz, classical, blues, folk and bluegrass have essentially disappeared from commercial radio, perhaps not coincidental with the outgrowth of radio consolidation, we are not asking for new formats to be created focusing solely on independent music. What we demand is a legitimate opportunity for our members’ music to appear on commercial radio playlists—an opportunity that we believe has been denied to our members due to these alleged practices.

As you are undoubtedly aware, the New York AG has initiated action at the state level and has successfully garnered disclosure and settlements from two of the major recording companies so far. The associated fines are viewed by many in our sector as mere slaps on the wrists in comparison to the financial harm caused nationally.

It is absolutely vital that any full investigation addresses the issue of how to ensure that the vast diversity of American music has a fair opportunity to access the public airwaves.
Sincerely,

Don Rose
Acting President

CC: A2IM Board of Directors:
Lesley Bleakley, Beggars Group
Peter Gordon, Thirsty Ear
Steve Gottlieb, TVT Records
Doug Keogh, Roadrunner Records
Glenn Morrow, Bar-None
Molly Neuman, Lookout Records
Thomas Silverman, Tommy Boy

Letter via Hits.