
What Is The Payola Scandal?
The Payola Scandal, also called “pay-to-play”, involved the illegal practice of record companies bribing broadcast companies for guaranteed airplay on the radio in American. A radio station could exchange airtime for money, but the extra time was supposed to be disclosed as sponsored time. During the payola scandal, the bought time was not disclosed and the increased number of times a song played had the ability to influence the perceived popularity of the song.4
The payola scandal was possible because of the disc jockeys (DJs) wielded enormous power and could control airtime of songs on the radio. Some disc jockeys such as Alan Freed used it to promote the music they enjoyed, but many used it to make money through bribery. Payola was used to make a song seem more popular and slowly evolved into an unfair competition and fraud in the music industry.3
To better understand the meaning of the Payola Scandal, it can be broken up into its base words, pay, Victrola, and scandal. Pay, is defined as giving someone money in exchange for something, Victrola, is a classic record player or phonograph, and scandal is defined as a disgraceful or discreditable action and or circumstance that can cause damage to reputation. The definition can be interpreted as artists using money instead of talent to attain extra airtime and fame.
How Did The Payola Scandal Begin?
Before 1940, the American Society of Composers, Authors, and Publishers (ASCAP) were the sole monopoly in the music recording industry. When Broadcast Music Incorporated (BMI) entered the market in 1940, ASCAP’s was dethroned. BMI was known for recording songs that differed from the popular songs radios played. Due to BMI being outside the norm, they had to pay DJs bribes to play their songs, which unintentionally started the payola scandal. Before payola, there was a flat rate of $50 to play someone’s song on the radio for a week. Disc jockeys began taking advantage of the bribes and offering more time for higher fees.2 Soon ASCAP had to pay DJs bribes to play their music as well. ASCAP was upset over their loss of monopoly and hinted at the federal investigators to review a potential problem involving bribery in the music industry.6

The scandal began in 1958, during the time that federal investigators revealed that popular NBC – TV shows were rigged. This discovery and inside tips from ASCAP led investigators to review the radio for malpractices and many causes of bribery were uncovered.
What Did The Government Due To Stop Payola?
The payola scandal provoked investigations by the National Association of Broadcasters (NAB) and in January of 1960, the NAB proposed that disc jockeys accepting bribes for airtime would be charged $500 and spend a year in prison. The law developed in 1960 is currently still in existence today.2
ASCAP, the stronger licensing organization, reportedly urged the investigation to undermine its major competitor, BMI, which was licensing the music of many black and country performers. Most major disk jockeys were taking payments to play songs since it was only illegal in two states. After an investigation, there were 335 DJs who admitted to accepting bribes to play a record on the radio, but two powerful and popular DJs, Alan Freed and Dick Clarke, both denied the allegations.2
Alan Freed refused to sign an affidavit in 1959, denying that he had accepted payola, which was not illegal at the time. He claimed that he would accept gifts for helping others, but never worked for bribes. In May 1960 Freed and seven other people were arrested on suspicion of commercial bribery. Freed was charged with 26 counts of bribery and was fired from WABC in 1962. This was the end of Freed’s radio career and his influence on Rock and Roll.2
Dick Clarke sought out legal advice and removed himself from anyone who he may have been involved in bribery. His smart legal decisions paid off as he was set free with no charges and continued his career as an influential DJ.1
Does Payola Exist In Current Music?
Current day payola was highlighted when in 2005, Sony BMG, a large record label, was fined $10 million after the state of New York found the company guilty of engaging in payola. Sony was paying DJs with cash and goods for playing Sony artists, such as Jessica Simpson. Sony hid their payola through running fake promotional contests and giving DJ’s the prizes.7
Current day payola can also be seen in the rise of streaming, now being labeled as corporate sponsorships or advertising fees. Music providers such as Spotify and Apple Music can charge thousands of dollars to get a song on a trending playlist depending on the number of followers that playlist has. Once an artist is on these playlists their popularity almost always increases along with song sales.8
How Does Payola Effect Popular Music?
The public does not hear artists whose labels can’t afford to pay high streaming and advertising fees, or whose label refuses to engage in the practice of bribery. Due to the current state of payola, record labels waste millions of dollars and large radio and music promotion corporations can charge any amount of fees they wish for an artist to be more recognized publicly. This current practice is legal, but it has the consequence of forcing artists who cannot afford to pay the fees to fail regardless of talent. Payola destroys fair competition while limiting the progression of new music and results in music being featured online based on money or famous connections rather than talent and popularity. .6

My Opinion on Payola.
Payola both old and new is a negative circumstance, which only benefits people who are wealthy. It causes the public to only hear artists who are picked based off of biases or who can afford to pay for excessive advertising. Payola results in top hits and music charts to not properly represent the popularity of the public and cause an overall lower satisfaction of music from viewers. Payola puts more of an emphasis on money and wealth instead of talent and hypothetically has drastically changed the course of popular music. It also has the potential to increase the cost of music, since labels involved in payola need to spend more money in order to have their songs played.5
Payola is also not beneficial for the radio, because it makes radio homogenous. People turn off the radio when the same song is played on every station or if it is overplayed. It also hurts the radio stations, who refuse to accept bribes for plays, as the other stations get cash injections from the labels. Now the general population will never know about the existence of talented artists who could not afford to bribe radio stations and our perception of popular music is built on lies.
Bibliography
- “Dick Clark Survives the Payola Scandal.” History.com. Accessed July 18, 2018. https://www.history.com/this-day-in-history/dick-clark-survives-the-payola-scandal
- Hutchinson, L. “Alan Freed and the Radio Payola Scanda.” Performing Songwrriter. Last modified August 20, 2015. http://performingsongwriter.com/alan-freed-payola-scandal/
- McDonald, H. “Payola: Influencing the Charts.” The Balance Careers. Last modified June 3, 2018. https://www.thebalancecareers.com/payola-influencing-the-charts-2460759
- Neira, B. “Payola Scandal Rocks 50’s Radio.” Modesto Radio Museum, Accessed July 18, 2018. http://www.modestoradiomuseum.org/payola.html
- Sherwin, A. “Payola: One of music’s oldest arrangements back with a bang on streaming playlists.” Independent.co.uk. Last modified August 20, 2015. https://www.independent.co.uk/arts-entertainment/music/news/payola-one-of-musics-oldest-arrangements-back-with-a-bang-on-streaming-playlists-10464513.html
- Shinn, E. “The Evolution and Effects of Payola on Popular Culture.” Texas Tech University. (2004). https://ttu-ir.tdl.org/ttu-ir/bitstream/handle/2346/23324/31295019381150.pdf?sequence=1
- “Sony to pay $10M in payola scandal.” CBC News. (2005). https://www.cbc.ca/news/entertainment/sony-to-pay-10m-in-payola-scandal-1.523524
- Peoples, Glenn. “How ‘Playola’ Is Infiltrating Streaming Services: Pay for Play Is ‘Definitely Happening’.” Billboard. Last modified August 19, 2015. https://www.billboard.com/articles/business/6670475/playola-promotion-streaming-services.