While the NAB whines about the "irresponsibility" of satellite radio companies, terrestrial radio is not without problems of their own. Four major terrestrial radio companies, Clear Channel, CBS Radio, Entercom and Citadel, are all expected to be making a major payola settlement with the FCC.
The broadcasters have agreed to a tentative settlement which would pay out $12.5 million to the U.S. government, according to Business Week (via FMQB).
The companies' stations will also offer 8,400 half-hours (which I assume totals to 4,200 hours) of free airtime to independent and local artists. FMQB has confirmed that the time devoted to independent artists would be required to air between 6am and midnight.
FCC sources told Business Week that the final language of the agreements have yet to be approved, and that the payment deal is separate from the airplay agreement.
Isn't there an old saying about those who live in glass houses....
Too bad they didn't force it to be local artists. Now the behemoths will produce a series of six half-hour specials to run nationwide at 11:30 on Sunday night to fulfill the requirement, which in the end will accomplish nothing.
I love how our local CC stations don't run any PSAs during their normal programming (so they can squeeze 20 min of commercials per hr. and plenty of Phil Collins in) and instead run a solid hour of PSAs Sundays at 11pm. They even list it on their website as "All the PSAs one hour can handle!"
Amazing how Mr. Rehr, the moral absolutist, is so silent about this. (As if he didn't know how common the practice was.) No comment from this champion of morality? How strange......