FCC Asks Big Record Labels To Document Policies on Payola -- WSJ

By Anne Steele

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (January 23, 2020).

The Federal Communications Commission asked the three major music companies for details on their anti-payola policies, citing unspecified recent reports of practices that would violate laws meant to prevent record companies from paying radio stations to play their music.

Commissioner Mike O'Rielly sent a letter last week to the compliance chiefs at Vivendi SA's Universal Music Group, Sony Corp.'s Sony Music Entertainment and Access Industries Inc.'s Warner Music Group, which control some 80% of the recorded-music market.

Mr. O'Rielly posted a copy of the letter on Twitter on Tuesday, adding: "We'll get to the bottom of recent accusations at some point [and] then can figure out next steps -- if necessary."

The letter asks what arrangements exist between each of the music labels and radio stations for song placement and frequency of airtime; what procedures each label has in place to ensure payola doesn't occur; whether or not any instances of violations have happened over the past five years and how that conduct was addressed. It also asks the labels where the greatest risk for potential violations lies as the recording industry embraces "ever-changing audio distribution technologies."

The companies have until the end of February to respond. People close to two of the companies said they weren't alarmed by the inquiry.

Rolling Stone magazine in August published an article alleging payola lives on through independent middlemen who purportedly use cash-transfer apps and corporate accounts to move money in exchange for radio airplay.

Mr. O'Rielly's letter to the companies followed a similar request for information in September from their trade group, the Recording Industry Association of America.

RIAA Chief Executive Mitch Glazier responded at the time that his organization doesn't represent the kind of independent operators alleged to engage in payola and suggested Mr. O'Rielly ask music labels directly about the purported practice. Mr. O'Rielly posted that letter on Twitter in September.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

January 23, 2020 02:47 ET (07:47 GMT)

Sony (NYSE:SONY)
過去株価チャート
から 3 2024 まで 4 2024