Radio Dials FCC Deal (payola)

[Cerridwen]

Radio Dials FCC Deal
William Triplett 03.06.07, 9:10 AM ET

The four major radio broadcasters and the Federal Communications Commission are putting the final touches on a payola settlement that will likely have many stations playing a different tune or two.

Clear Channel Communications, CBS Radio, Entercom Communications and Citadel Broadcasting will ink a pair of related deals that call for a record $12.5 million fine. In a landmark move under the agreement, the station groups will guarantee 8,400 half-hour segments of free airtime for indie record labels and local artists.

Indie labels, for purposes of the settlement, are those not owned or controlled by one of the nation's four dominant music labels -- Sony BMG, Warner Music Group, Universal Music Group and EMI Group.

"This is a real breakthrough," said FCC commissioner Jonathan Adelstein, who has made payola a priority issue in recent years. "We're seeing a willingness of broadcasters to put this behind them and settle things fairly."

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