Payola Scandal #M6Q3

‘Payola – The paying of cash or gifts in exchange for airplay’. [2] This is the broad definition of the term ’Payola’ but what this definition lacks is the substance that makes the word so memorable to so many within the music industry. The Payola scandal is one of the most significant events in the introduction of popular music into the mainstream the influence it had on future music and the music that was deemed popular at the time was all influenced by this particular event and it may have very well changed the course of music history. “Payola” is a contraction of the words “pay” and “Victrola” (LP record player). [2] This basically means hat whoever was in changed could be bribed into playing songs that were not on the set list which gave more exposure to the artists that were in need of radio play to kick off their careers.

Major Players In The Game

“In 1959, Alan Freed, the most popular disc jockey in the country, was fired from his job at WABC after refusing to sign a statement that he’d never received payola to play a record on the air. For most of America, the word payola was a new one. But for anybody in the music business, it was as old as a vaudevillian’s musty tuxedo” [1]. Although not new to many within the industry payola became an important part of the late 50’s and into the early 60’s with Alan Freed standing trial along with another popular DJ at the time Dick Clark both decreed their innocence in receiving payments to play certain songs. “It was Freed who ended up taking the fall for DJs everywhere” [1]. The question is why did Alan Freed take the brunt of these accusations when Dick Clark among many other DJ’s at the time were guilty of the same thing? Alan Freed had a reputation of being more outspoken “Freed was abrasive. He consorted with black R & B musicians. He jive talked, smoked constantly and looked like an insomniac” [1]. Whereas Dick Clark had a different persona which was reflected by his peers, “Clark was squeaky clean, Brylcreemed handsome and polite” [1]. The fate of these two major players in the payola scandal took two different paths “Freed’s friends and allies in broadcasting quickly deserted him. He refused to sign an affidavit saying that he’d never accepted payola. WABC canned him, and he was charged with twenty-six counts of commercial bribery. Freed escaped with fines and a suspended jail sentence. But he died five years later, broke and virtually forgotten” [1]. Dick Clark’s fate was much different which leads people to believe that Alan Freed took the fall for other DJ’s including Clark, “Dick Clark had wisely divested himself of all incriminating connections (he had part ownership in seven indie labels, six publishers, three record distributors and two talent agencies). He got a slap on the wrist by the Committee chairman, who called him “a fine young man”. [1]Dick Clark was clearly the largest proprietor of the payola scandal having for a DJ to be that heavily involved as an owner in those businesses he had to have been doing well financially and subsequently had a major influence on those artist’s who were looking to make it big. This marked the first time that music within the African American community got some national attention during the payola scandal Alan Freed “first played Rhythm & Blues (R & B, or “race music”) in 1951. Until that time, the music remained largely in the black community”. [4] Until this point the music that was primarily known in the African American communities had some exposure on some mainstream radio stations because of guys like Alan Freed, however the principle of exploiting these musicians and using the advantage of their position to gain some financial power at the expense of the lack of acceptance of African American’s can be considered a little disingenuous because of the situation even though these musicians had major talent which led into the birth of Rock ‘n’ Roll.

Payola Modern Day

‘playlists are the new radio.’  And like most clichés, it’s partly true: playlists on platforms like Spotify are not only a major vehicle for discovery, they are also a huge way to build a song’s popularity and an artist’s career.  For many music listeners, it’s the only way they’ll hear something new (or old)” [3]. You would figure that with the payola scandal being brought to the forefront of any mainstream media outlet so many years ago and how the reputation of such system became frowned upon, that there would not be such a system in the present day wrong! It’s still quite prevalent in the music industry primarily among the most popular way to access music online playlists and apps such as Spotify. “The only problem is that the biggest playlists on Spotify aren’t organic, they’re bought-and-sold like radio playlists of old.  Which means it’s nearly impossible to get discovered with great music alone (just like before)”. [2] Same power system used over popular music just a different platform but still as effective if not more. “So who makes the decisions on who gets into that heavily-trafficked playlist, and who gets left off?  Those decisions appear increasingly controlled by three major labels: Universal Music Group, Sony Music Entertainment, and Warner Music Group, a group that collectively owns a very substantial ownership share of not just Spotify, but other platforms like VEVO, a critical component of the largest streaming service in the world, YouTube”. [2] Even in the present day major conglomerates control what we listen to and are not held accountable for suppressing creativity which is unfortunate because these companies determine who gets recognized and who becomes famous. With that being said payola still has a stranglehold on music and to me seems unacceptable when considering all of the talent that is getting overlooked because they will not give into the capitalist machines that corrupt even the purest of art forms.

 

Bibliography

  1. Demain, Bill. 2011. Paying the Piper a Little Something Extra: A Short History of Payola. November 7.
  2. History-of-Rock. 2018. July 12.
  3. Resnikoff, Paul. 2016. Major Label CEO Confirms That ‘Playlist Payola’ Is a Real Thing…. May 20.
  4. Thornton, Steve. 2018. Rock and Roll vs. Racism. July 12.

 

 

Payola Scandal #M6Q3

‘Payola – The paying of cash or gifts in exchange for airplay’. [2] This is the broad definition of the term ’Payola’ but what this definition lacks is the substance that makes the word so memorable to so many within the music industry. The Payola scandal is one of the most significant events in the introduction of popular music into the mainstream the influence it had on future music and the music that was deemed popular at the time was all influenced by this particular event and it may have very well changed the course of music history. “Payola” is a contraction of the words “pay” and “Victrola” (LP record player). [2] This basically means hat whoever was in changed could be bribed into playing songs that were not on the set list which gave more exposure to the artists that were in need of radio play to kick off their careers.

Major Players In The Game

“In 1959, Alan Freed, the most popular disc jockey in the country, was fired from his job at WABC after refusing to sign a statement that he’d never received payola to play a record on the air. For most of America, the word payola was a new one. But for anybody in the music business, it was as old as a vaudevillian’s musty tuxedo” [1]. Although not new to many within the industry payola became an important part of the late 50’s and into the early 60’s with Alan Freed standing trial along with another popular DJ at the time Dick Clark both decreed their innocence in receiving payments to play certain songs. “It was Freed who ended up taking the fall for DJs everywhere” [1]. The question is why did Alan Freed take the brunt of these accusations when Dick Clark among many other DJ’s at the time were guilty of the same thing? Alan Freed had a reputation of being more outspoken “Freed was abrasive. He consorted with black R & B musicians. He jive talked, smoked constantly and looked like an insomniac” [1]. Whereas Dick Clark had a different persona which was reflected by his peers, “Clark was squeaky clean, Brylcreemed handsome and polite” [1]. The fate of these two major players in the payola scandal took two different paths “Freed’s friends and allies in broadcasting quickly deserted him. He refused to sign an affidavit saying that he’d never accepted payola. WABC canned him, and he was charged with twenty-six counts of commercial bribery. Freed escaped with fines and a suspended jail sentence. But he died five years later, broke and virtually forgotten” [1]. Dick Clark’s fate was much different which leads people to believe that Alan Freed took the fall for other DJ’s including Clark, “Dick Clark had wisely divested himself of all incriminating connections (he had part ownership in seven indie labels, six publishers, three record distributors and two talent agencies). He got a slap on the wrist by the Committee chairman, who called him “a fine young man”. [1]Dick Clark was clearly the largest proprietor of the payola scandal having for a DJ to be that heavily involved as an owner in those businesses he had to have been doing well financially and subsequently had a major influence on those artist’s who were looking to make it big. This marked the first time that music within the African American community got some national attention during the payola scandal Alan Freed “first played Rhythm & Blues (R & B, or “race music”) in 1951. Until that time, the music remained largely in the black community”. [4] Until this point the music that was primarily known in the African American communities had some exposure on some mainstream radio stations because of guys like Alan Freed, however the principle of exploiting these musicians and using the advantage of their position to gain some financial power at the expense of the lack of acceptance of African American’s can be considered a little disingenuous because of the situation even though these musicians had major talent which led into the birth of Rock ‘n’ Roll.

Payola Modern Day

‘playlists are the new radio.’  And like most clichés, it’s partly true: playlists on platforms like Spotify are not only a major vehicle for discovery, they are also a huge way to build a song’s popularity and an artist’s career.  For many music listeners, it’s the only way they’ll hear something new (or old)” [3]. You would figure that with the payola scandal being brought to the forefront of any mainstream media outlet so many years ago and how the reputation of such system became frowned upon, that there would not be such a system in the present day wrong! It’s still quite prevalent in the music industry primarily among the most popular way to access music online playlists and apps such as Spotify. “The only problem is that the biggest playlists on Spotify aren’t organic, they’re bought-and-sold like radio playlists of old.  Which means it’s nearly impossible to get discovered with great music alone (just like before)”. [2] Same power system used over popular music just a different platform but still as effective if not more. “So who makes the decisions on who gets into that heavily-trafficked playlist, and who gets left off?  Those decisions appear increasingly controlled by three major labels: Universal Music Group, Sony Music Entertainment, and Warner Music Group, a group that collectively owns a very substantial ownership share of not just Spotify, but other platforms like VEVO, a critical component of the largest streaming service in the world, YouTube”. [2] Even in the present day major conglomerates control what we listen to and are not held accountable for suppressing creativity which is unfortunate because these companies determine who gets recognized and who becomes famous. With that being said payola still has a stranglehold on music and to me seems unacceptable when considering all of the talent that is getting overlooked because they will not give into the capitalist machines that corrupt even the purest of art forms.

 

Bibliography

  1. Demain, Bill. 2011. Paying the Piper a Little Something Extra: A Short History of Payola. November 7.
  2. History-of-Rock. 2018. July 12.
  3. Resnikoff, Paul. 2016. Major Label CEO Confirms That ‘Playlist Payola’ Is a Real Thing…. May 20.
  4. Thornton, Steve. 2018. Rock and Roll vs. Racism. July 12.

 

 

The Payola Scandal

Hi there, this is my second blog post and I will be discussing the historical Payola Scandal.

The payola scandal regards to a time when radio hosts and disc jockeys had the ability to control whether an artist’s career would rise or crumble. The scandal came about during the 1950s’ and affected many people and changed the way radio stations worked.

Payola is the act of disc jockeys (or more commonly known as DJs) being bribed by record companies (sometimes thousands of dollars) to promote and give more airtime to a certain song or artist. This was actually legal as long as the song was publicly acknowledged as being sponsored. If this information was not presented while on air and was played off as being part of the day’s normal broadcast it was actually eventually considered to be illegal.

Payola negatively affected many entertainers and artists. Some popular names that were involved with payola scandal include, Dick Clark, and disc jockey Alan Freed. An investigation took place by the government starting around 1959 and both men were investigated which eventually lead to new laws.

Dick Clark was a very popular television personality. His involvement was investigated when his show “American Bandstand” was thought to be rigged. Clark had many external investments including investments with some record companies. Before the Payola trial, he was advised by his network ABC to sell his shares back and separate his name from these record companies. Free of any conflict of interest, in his testimony, Clark denied to having any knowledge or involvement in payola. In the end he was let go free of consequences and his career continued to rise for many years following.[1] Clark gave an interview in 1999 and described everything to be a very illuminating experience. Dick Clark died on April 18th 2012.[6]

Dick Clark in court

Alan Freed on the other hand did not have as pleasant of an experience. He was a radio and television host that was known for supporting and essentially coming up with the term “rock and roll.” In 1960 he was arrested and investigated by the Congressional Subcommittee. [1] Freed continuously denied his involvement in payola and refused to cooperate with the investigation. This lead to him being charged with 26 counts of commercial bribery. Throughout all this time, Freed was fired by ABC, and lost all of his television and radio shows. In 1962 he decided to plead guilty to two counts and had to pay a fine. With his tarnished reputation, Freed’s career was over. [3] His goodbye to fans after losing his job can be heard below. Very soon after he began drinking heavily which lead to his death in 1965 due to liver and kidney failure at the age of 43.[4]

Alan Freed

In the end, the government investigation lead to payola becoming a misdemeanor offense. Fines and jail time were possible consequences of the offense. DJ’s were no longer able to make any decisions involving what was played on air. Any payments made for airplay must be disclosed to the public. Many other DJs were charged as well and networks began to fire disc jockeys that might of put the network at risk.[5]

To this day payola still exists within the music industry and controls radio stations. Today’s payola involved third parties known as independent promotors or “indies” the entire process involves music labels paying indies to then move to the radio station to promote a song. Indies use the money from music label to directly pay radio stations to play a certain song.[2] This process is to blame for independent artists and labels being washed out. It completely affects the music we are exposed to because what we hear is what they want us to hear, whether it is a good song or not. The success of songs is really based on its popularity and the more we hear a song on the radio the more successful it becomes. Modern payola does not just involve radio station but also online streaming services like Spotify. The “Top Hits” playlist for example is very popular for listeners and artist’s songs make their way on the playlist essentially is the same way as they would for radio air time.

Whether or not Payola is a good or bad thing is really up for debate. I believe the music industry would be completely different without it. It is no question that artists need promotion for their music and this is a way for record companies can ensure that they get it. Some may believe that paying for exposer is in a sense wrong but I think it’s simply how business works. We see it everywhere from the ads all over the apps we use to creators on YouTube being paid to promote a certain product. It exists all around us and payola is no exception.

Sources:

[1] “Alan Freed, Dick Clark and the Radio Payola Scandal.” Performing Songwriter Ent., LLC. August 24, 2015. Accessed July 19, 2018. http://performingsongwriter.com/alan-freed-payola-scandal/.

[2] “How Payola Works Today… Or Why You Only Hear Major Label Songs On The Radio.” Techdirt. Accessed July 19, 2018. https://www.techdirt.com/articles/20110916/03140815978/how-payola-works-today-why-you-only-hear-major-label-songs-radio.shtml.

[3] Skorup, Brent. “What Happened to Radio DJs?: Payola, Rock and Roll, and Race in the 1950s.” Plain Text. March 02, 2017. Accessed July 19, 2018. https://readplaintext.com/what-happened-to-radio-djs-payola-rock-and-roll-and-race-in-the-1950s-b5f039041bd.

[4] J.D. The Pop History Dig. Accessed July 19, 2018. http://www.pophistorydig.com/topics/tag/alan-freed-payola/.

[5] “Payola Scandal Rocks 50’s Radio.” Untitled. Accessed July 19, 2018. http://www.modestoradiomuseum.org/payola.html.

[6] “Dick Clark.” Biography.com. April 28, 2017. Accessed July 19, 2018. https://www.biography.com/people/dick-clark-9249296.

 

The Payola Scandal

Coined in the early 20th century, the word payola is a hybrid of “pay” and “Victrola” (the first popular portable phonograph, the Victrola was a crank-driven turntable with a built-in speaker that looked like an oversized trumpet) [2] The purpose of payola is to get a song heard by a wider audience, typically via radio, with the expectation that the song will then yield increased profits. The word connotes nothing more than an elevated form of bribery[3]

The precursors to payola amounted to plain bribery, beginning in the early 1900s. During this time, the main way publishers found to connection was vaudeville, and this was precisely the medium from which payola originated.[3] Back then, music publishers routinely plied traveling vaudeville performers with gifts to spread the latest songs across the country. When audiences heard the featured songs, it would result in increased sheet music sales, then the industry’s main source of revenue.[2] It didn’t stop there. Often there were shills in the vaudeville theaters, paid for applaud a little louder for particular songs, driving up their popularity. And then there were the guys in charge of stocking the song rolls inside coin-operated player pianos in saloons, who weren’t above taking a little extra to load in certain titles.[1] By the early 1920s, payola was an accepted fact of the business.[2]

After the demise of vaudeville, the practice even transferred to Broadway, with the companies paying the musicals’ writers to put their singles into the shows. Even in these early times of payola, the songwriters were not receiving any of the cutbacks and so naturally were upset.[3] However, the performers were enjoying the exclusivity they experienced and condemned talk of ending payola for fear that inferior artists would destroy “free” songs at minor halls [7] So rampant was the practice that in the early 1930s, the National Broadcasting Corporation even proposed bringing it above board, by charging music publishers and record companies a flat rate for each exposure of a new song. The problem was, this would’ve interfered with the individual deals that the era’s singing stars and big band leaders already had in place.[2] Laws regulating payola were drafted over forty years ago, and no piece of legislation has since been made to control the strikingly similar practices of modem radio. With the Telecommunications Act of 1996 that allowed radio conglomerates to expand ownership even more, the situation looks bleak for the artists and labels to control the payola situation without lobbying for updated legislation.[3] Payola is not now, nor ever has been, illegal, yet various pieces of legislation exist in an effort to combat the breach of the ideas of creative freedom and ethical business practices payola challenges.[3]

The Major Players

-Alan Freed

The New York Times headline read “Alan Freed Is Out in ‘Payola’ Study” on November 22,1959. Alan Freed was not only the man who coined the term “rock and roll”[6] but also one of the most popular DJs in the country. The day before the article broke. Freed was fired from his job at WABC radio. After losing his job as host of the television show “The Big Beat”, the next day Freed was served a subpoena from the New York district attomey.[3]

When the grilling started, Freed’s friends and allies in broadcasting quickly deserted him. He refused—“on principle”—to sign an affidavit saying that he’d never accepted payola. He was charged with 26 counts of commercial bribery. [1] His death in 1965 from alcohol-related medical problems cemented his disgrace, and his memory entails little more than a sad martyr for the cause of rock and roll and the worldly business practices that inevitably accompany it[5].

-Dick Clark

The other main target in the payola probe was the hit show American Bandstand’s host Dick Clark. Although he gave up a great deal of money, Clark’s reputation remained unscathed throughout the ordeal. For his testimony at the subcommittee meeting, Clark delivered a prepared statement that while acknowledging the outside financial benefits he had been receiving for the duration of his career, also explained the ” ‘unique opportunity’ to turn his ‘expert knowledge’ of popular taste into a steady source of income” [5] in an increasingly fickle industry.

His concluding remarks to the subcommittee assured them that he was “glad to have participated” [5] in the new ethical standards for the music business that Congress was trying to create. By the end of the probe Clark was secure in his financial status and his public image somehow rocketed to new heights. As Clark told Rolling Stone in 1989, the lesson he learned from the payola trial was: “Protect your ass at all times.” Surprisingly candid words from the eternal teenager.[1] Seen as overly commercial by most serious rock fans, Clark now represented a film figure for all pop music genres. Clark’s status has remained unmatched as his popularity soars even today, with the payola scandal acting as an insignificant scratch in his past [5].

After Freed went down in 1960, Congress amended the Federal Communications Act to outlaw “under-the-table payments and require broadcasters to disclose if airplay for a song has been purchased.” Payola became a misdemeanour, with a penalty of up to $10,000 in fines and one year in prison.[1]

Nowadays

Now, many radio stations have already changed the way to add such songs but not playing at all. They were just paper adds. Although the payola worked to place such songs on play lists, the airtime needed to spark interest for album sales was not being provided.[3]People ‘s attention was brought to payola again.

In 1984 the House Oversight and Investigation Subcommittee announced that it had just completed a new probe of record promoters and their influence on radio play lists.[3] Two Indies that were thought of as the most notorious among the top thirty who were known simply as the “Network” were Joe Isgro and Fred DiSipio. The men were said to have ties to the mafia and were receiving up to $300,000 per song from record labels to make play Ust adds across the country [7]

Payola is absolutely illegal action and we must say no to it. Also, we may found it’s hard to eliminate payola entirely in the long term. The expert and regulation still take much efforts on it but few improvements. In my opinion, Payola’s negative side is evident that its control audience’s preference as well as the whole society’s preference. All audience have their right to listen and choose without force to choose. Even though it is difficult to take effective action, we still need work to find effective regulations or measures to meet payola.

Cited

[1]“Alan Freed, Dick Clark and the Radio Payola Scandal.” Performing Songwriter Ent., LLC, 24 Aug. 2015, performingsongwriter.com/alan-freed-payola-scandal/.

[2]“Paying the Piper a Little Something Extra: A Short History of Payola.” Mental Floss, 7 Nov. 2011, mentalfloss.com/article/29183/paying-piper-little-something-extra-short-history-payola.

[3] Shinn, Erin S. The Evolution and Effects of Payola on Popular Culture. 2004

[4] Boehlert, Eric. “Pay for Play.” Salon.com 14 March 2001 . http://dir.salon.com/ent/%20Feature/2001%20/03/14/payol/index.html

[5] Miller, James. Flowers in the Dustbin: The Rise of Rock and Roll. 1947-1977. New York: Simon & Schuster, 1999.

[6]Barnes, Tim. “Loosen Up: The Rolling Stones Ring in the 1960s”. Ch. 1 of Living Through Pop. Ed. Andrew Blake. London: Routiage, 1999.

[7] Segrave, Kerry. Pavola in the Music Industry: A History, 1880-1991. Jefferson: McFarland & Company, Inc., 1994.

The Payola Scandal

Payola;

      (n.) a secret or private payment in return for the promotion of a product, service, etc., through the abuse of one’s position, influence, or facilities. 1

That is the broad definition of payola. But how does it relate to music? In short payola in the music industry referred to labels paying disc jockeys under the table for extra radio time.  Payola was suspected to have existed for years before 1959, so why did it only become a household word in the 50’s? The uprising in payola practices was likely due to many factors, such as the emergence of better recording technology, the new popularity of “Top 40” music, and the fact that the number of american jockeys had increased x20 2. The investigation into radio practices, which led to the Payola Scandal of 1959, actually began in the game show industry when numerous popular game shows were accused of fraud.  After this discovery, the National Association of Broadcasters investigated 100s of disc jockeys across the country.  Jockeys were taking payments up to $22,000 and passing them off as “consulting fees”. Among the accused was Alan Freed, the man who coined the term “rock ‘n’roll”3.  Freed faced 26 counts of

Alan Freed
https://commons.wikimedia.org/wiki/File:Alan_Freed_disk_jockey.jpg

commercial bribery but got away with only having to pay a fine. Dick Clark, one of the top djs in America at the time, was also among those who were suspected of payola. Clark ended up not being accused, but whether he was truly participating in the payola game, we’ll never know for sure.

 

 

 

“Protect your ass at all times”  ~ Dick Clark in a Rolling Stones interview

Dick Clark
https://www.flickr.com/photos/alan-light/254837623

After the investigation was over, the government amended the Federal Communication Act of 1934. The act regulates telephone, telegraph, and radio communications in the United States. Payola was listed as a misdemeanor under the amended act to discourage illegal private payments. Under this act, jockeys must now disclose to listeners  if airplay has been purchased by labels. The penalty’s put in place for payola were fines up to $10,000 or one year in prison. 4

With that being said, even after the act was amended, payola continued and forms of payola still persist today. Companies have gotten smarten and found more innovative ways to hide their illegal activities, making the problem more sophisticated. Companies today have more resources and therefore further reach, going as far as to run fake promotional competitions and then rigging it so the djs always win.  This was the case in one of the more recent huge scandals involving Sony BMG in 20055. As payola becomes more widespread in the music industry, it becomes more and more common because innocent labels will feel the need to get on board in order to stay competitive. That spiral effect is the reason payola continues to get more and more complicated.  It’s  so popular, bands make parody songs about it; as shown in the song  Hey, Mr.DJ, I Thought You Said We Had a Deal, by They Might be Giants.6

Payola influences the music we are exposed to because it allows larger more resourceful labels to get the upper hand.  Money and power outshine pure talent, therefore we are constantly exposed to the the music produced by the top dogs instead of what the public deems as pure talent. The “Top 40” playlist is no longer a representative of what the listeners like, but more so which label handed out the most cash. In a way we are being told what we like and what should be popular because our exposure is being filtered by the jockeys who are participating in payola. Of course this is a never ending cycle, big labels and artists continue to get stronger while small start up artists can’t get a break, meaning we as listeners don’t get exposure to new talent who cannot afford to pay off the djs. Radio stations that participate in illegal activity continue to grow while they run the good guys out of business.

After learning so much about the presence of payola in the world, my opinion is neither for nor against it.  While I feel payola is morally wrong, being realistic, I recognize the place for it in today’s very competitive business environment. Business thrives on the unspoken rules of engagement,  and once you know the unwritten rules being used, you can use them to climb the latter to success. The sad truth is in every industry these politics exist that our unfair to the underdog.  So while I do agree payola is a bad thing ethically, I see why it has become such a prominent scam in the radio industry.

References

1 Dictionary.com. “Payola.” Accessed July 18, 2018. http://www.dictionary.com/browse/payola.

2 Performing Songwriter. “Alan Freed and the Radio Payola Scandal”. Accessed July 18, 2018.  http://performingsongwriter.com/alan-freed-payola-scandal/.

3 Modesto Radio Museum. “Payola Scandal Rocks 50’s Radio”.  Accessed July 18, 2018. http://www.modestoradiomuseum.org/payola.html.

4 U.S. Department of Justice. “The Communication Act of 1934”. Accessed July 18, 2018. https://it.ojp.gov/PrivacyLiberty/authorities/statutes/1288.

5 The Balance Careers. “Payola: Influencing the Charts”. Accessed July 18, 2018. https://www.thebalancecareers.com/payola-influencing-the-charts-2460759.

The Payola Scandal

M6Q3   The Payola Scandal

Payola can be defined as “a secret or private payment in return for the promotion of a product, service, etc., through the abuse of one’s position, influence, or facilities.”1 In the 1950’s and even today this means private payment or bribery from a record company or artist for radio play to increase popularity of a song and/or record without the public knowing.

In 1959, when the payola scandal occurred, radio air play was the number one way for record labels to promote their artists, giving disc jockeys a great amount of power. Record labels wanted listeners to hear their artists and therefore took matters into their own hands by paying (or giving other incentives) disc jockeys for air play. The extent of the payments ranged from a couple hundred dollars to Chicago DJ Phil Lind admitting to accepting $22,000 to play one record.2 The practise of payola became so prevalent that eventually an investigation was launched by the US government.3

 

Dick Clark and Alan Freed were two major players caught up in the payola scandal. Alan    Freed, the disc jockey who essentially gave “rock and roll” its name, ended up taking the fall for many corrupt disc jockeys and the payola scandal ultimately cost him his career.4 Dick Clark, business man and host of popular TV show American Bandstand, testified before congress in 1960 and was not charged for any crimes and went on to have a successful career including creating and producing the American Music Awards show.5 He was required to dissolve all of his musical interests and shares to save his TV career.

Dick Clark in the 1950’s

 

 

 

 

The Federal Communications act was amended and payola officially became illegal in 1960, making it a misdemeanor charge.6 People guilty of payola face fines of $10,000 and/or prison for one year or less. This took away much of the power that disc jockeys had as they now did not have the power to decide what was played. On radio stations today, broadcasters are required to disclose to listeners when information is aired in exchange for money or services and/or when sponsorships are involved.7

Even after payola became illegal it still went on under-the-table and still does today. Payola is the reason why you won’t hear many undiscovered artists and groups on the radio. Instead, there are artists you hear repeatedly and repetition almost forces us to enjoy whatever is on the radio. You can also find payola on television and internet. In 2015, it was revealed that many music labels were making payments to Spotify in order to get songs on certain playlists.8 Not to mention the leaked Sony- Spotify contract revealing millions in advanced payments and advertisements for Sony on Spotify.9 It has become normal for major music label marketing teams to include playlist promotion (soliciting of songs to streaming companies) in their marketing strategies.10

For upcoming artists, this means an uphill battle to get their music heard as it costs around $300,000 to get a song on radio at a national level.11 I believe it has a negative impact on the music industry as many talented artists are not able to get their music out at a large scale due to major music labels paying for spots on playlists and top charts. Artists today can use free social media websites (Facebook, Instagram Twitter) to help get their voices heard which was not the case in the 1960’s. Payola has also become a lot more complicated today than simply slipping a disc jockey $200 and a record. A lot goes on under the table and much of the public does not know which major music labels own large percentages in Spotify, Deezer and other streaming services and therefore can influence who is on the top charts and popular playlists.

In todays society this can be tied into “social media influencers” who are paid to promote certain products. Instead of products becoming popular on their own from people buying them and enjoying the product, social media influencers are offered monetary compensation in exchange for promoting certain products. This occurs extensively on Instagram and YouTube. Although influencers are required to state if it is an advertisement or paid promotion/partnership, promotions like these can significantly boost sales depending on the influencers size of following. 

 

 

“Pay-to-Play” Scandal: Changing the Charts

 

Hello! My name is Taylor and I am a second year student in the College of Education. Today I am here to talk about the payola scandal of 1959. Before we begin, let’s point out what exactly payola is. Payola, in the music world of 1959, was the act of a disk jockey accepting bribery to insure that an artist’s music would play on the air.[1] The term payola came from the combination of the words “payment” and “Victrola” (which is a phonograph).[2] Payola is illegal if you accept the form of payment and do not disclose that you have received a payment and the purpose behind it to the audience. To some artists or record companies, payola may seem like an easy way to secure the success of their work. There are a lot of pressures in the music industry and this may be an easy relief. However, it is illegal. [3]

https://www.google.ca/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwi92PrU56TcAhUwHjQIHWpUBZ8QjRx6BAgBEAU&url=http%3A%2F%2Fwww.animatedimages.org%2Fcat-radio-599.htm&psig=AOvVaw1rXFqkMgKXNaUg-7eVv_Q-&ust=1531871329928166

The payola scandal all began when a few TV quiz-shows revealed to be rigged. A contestant had been given the answers earlier on, in order to win. Shortly after, in 1959, the payola scandal of the music business was discovered. Rock and roll music was emerging and payola, or “pay-to-play”, was becoming more popular.[1] Because of this, disk jockeys held a lot of power in deciding what music people heard on the radio, therefore, impacting artists’ success.[2] 

(Need a little more background before you keep reading? Watch from 1:00-4:25)

As payola grew in the music business, a government investigation broke out. Congressman Oren Harris and the Subcommittee on Legislative Oversight announced that they would begin to examine the payola scandal.  Multiple disk jockeys, including Alan Freed and Dick Clark were investigated.[6] Both Freed and Clark had exceptionally successful careers that were being threatened.

Alan Freed http://performingsongwriter.com/alan-freed-payola-scandal/

 

 

 

 

 

During the investigation, Freed and Clark were asked by ABC, who they were working for at the time, to sign affidavits stating that they had not received payola to promote records. Alan Freed refused to sign the document and claimed that any money he had received was for “consultation”. On September 21st, 1959, he was fired from ABC. Dick Clark, on the other hand, did agree to sign the affidavit and was required to “divest some of his financial holdings in the music industry.”[7] Clark was given a pass and continued on with his career with almost no damage done.[8]

http://www.pophistorydig.com/topics/tag/alan-freed-payola/

Freed’s trials continued into the 60s where he eventually, in 1962, was charged with numerous counts of commercial bribery. Later that year, he pleaded guilty to only two of the charges and was fined three hundred dollars. Freed’s career had taken a severe hit. With this damage, he turned to alcohol and soon died in 1965.[9] As a result of the payola scandal, disk jockeys were no longer allowed to choose the music that got airtime. It also contributed to the decline of “rock and roll”.[10]

Payola still occurs today, but in a different manner. Today, artists and record labels are paying streaming companies like Spotify, Apple music, and Deezer, for example, to display their music on their popular playlists, therefore, giving their music more exposure to the world.[11] Payola also occurs discreetly in the advertisement industry. Many artists and record companies pay social media platforms to have advertisements and sponsored posts for their music show up on social media pages such as Instagram and Facebook. However, sponsorship and advertisements are legal because we are being told that the artist or record company paid to have these advertisements here.[12]

https://techcentral.co.za/spotify-set-sa-launch-next-week/80014/

Both of these forms of payola are more subtle because we do not solely rely on radio for music anymore. There are numerous new ways for people today to access and discover music, including streaming companies and advertisements online.

Although the methods of payola have changed, the underlying purpose and effects of it has stayed the same. Artists and record companies want their music to be heard all over the world. As a result, the companies and artists who have the extra money for advertisements and spots on popular playlists are more likely to be explored by people and have their music heard by the public.

For example, I went on to my personal Instagram account and found a post that was sponsored. I follow a lot of country music artists already on my account, so this post of Chis Lane’s new album popped up on my feed. The post played a clip of the artist’s music and had a link with various ways of listening to the new album.

Even though this form of payola is legal, it is still seems a bit unfair for any new artists who are just starting out and don’t have the extra money. Unfortunately, that is just a part of the competitive business now.

It is hard to say whether these new forms of payola are right or wrong. It is still highly debatable. There are many loopholes and ways to make payola legal. For example, a company can still pay a radio station for airplay, as long as the DJ says on air that it was paid for. However, the effects of legal payola remain the same as the effects of illegal payola. The charts are still being altered by those who have the money to do it.[13]

[1] Michael Campbell, “Chapter 43 Buddy Holly and the Viral Evolution of Rock and Roll,” chap. 43 in Popular Music in America: The Beat Goes On, Fourth Edition. (Boston: Schirmer Cengage Learning, 2013).

[2] “Moondog Alan Freed: Payola,” The Pop History Dig, Google, accessed July 12, 2018, http://www.pophistorydig.com/topics/tag/alan-freed-payola/

[3] Charles Fairchild, “Alan Freed still casts a long shadow: the persistence of payola and the ambiguous value of music”, Culture & Society, Vol 34, Issue 3 (May 2012): 328-330, https://doi-org.cyber.usask.ca/10.1177/0163443711433667

[4] “Moondog Alan Freed: Payola,” The Pop History Dig, Google, accessed July 12, 2018, http://www.pophistorydig.com/topics/tag/alan-freed-payola/

[5] Michael Campbell, “Chapter 43 Buddy Holly and the Viral Evolution of Rock and Roll,” chap. 43 in Popular Music in America: The Beat Goes On, Fourth Edition. (Boston: Schirmer Cengage Learning, 2013).

[6]“The Payola scandal heats up,” History.com, Google, accessed July 15, 2018, http://www.history.com/this-day-in-history/the-payola-scandal-heats-up

[7]“Moondog Alan Freed: Payola,” The Pop History Dig, Google, accessed July 12, 2018, http://www.pophistorydig.com/topics/tag/alan-freed-payola/

[8] “Dick Clark Survives the Payola Scandal,” History.com, Google, accessed July 15, 2018, https://www.history.com/this-day-in-history/dick-clark-survives-the-payola-scandal

[9] “Moondog Alan Freed: Payola,” The Pop History Dig, Google, accessed July 12, 2018, http://www.pophistorydig.com/topics/tag/alan-freed-payola/

[10] Michael Campbell, “Chapter 43 Buddy Holly and the Viral Evolution of Rock and Roll,” chap. 43 in Popular Music in America: The Beat Goes On, Fourth Edition. (Boston: Schirmer Cengage Learning, 2013).

[11]“Payola: One of music's oldest arrangements back with a bang on streaming playlists,” Independent, Google accessed July 12,2018, https://www.independent.co.uk/arts-entertainment/music/news/payola-one-of-musics-oldest-arrangements-back-with-a-bang-on-streaming-playlists-10464513.html

[12]Charles Fairchild, “Alan Freed still casts a long shadow: the persistence of payola and the ambiguous value of music”, Culture & Society, Vol 34, Issue 3 (May 2012): 328 – 331, https://doi-org.cyber.usask.ca/10.1177/0163443711433667

[13] Ibid.328-331

Works Cited 

Charles Fairchild, “Alan Freed still casts a long shadow: the persistence of payola and the ambiguous value of music”, Culture & Society, Vol 34, Issue 3 (May 2012): 328 – 342, https://doi-org.cyber.usask.ca/10.1177/0163443711433667

“Dick Clark Survives the Payola Scandal,” History.com, Google, accessed July 15, 2018, https://www.history.com/this-day-in-history/dick-clark-survives-the-payola-scandal

Campbell, Michael “Chapter 43 Buddy Holly and the Viral Evolution of Rock and Roll,” chap. 43 in Popular Music in America: The Beat Goes On, Fourth Edition. (Boston: Schirmer Cengage Learning, 2013).

“Moondog Alan Freed: Payola,” The Pop History Dig, Google, accessed July 12, 2018, http://www.pophistorydig.com/topics/tag/alan-freed-payola/

“Payola: One of music's oldest arrangements back with a bang on streaming playlists,” Independent, Google accessed July 12,2018, https://www.independent.co.uk/arts-entertainment/music/news/payola-one-of-musics-oldest-arrangements-back-with-a-bang-on-streaming-playlists-10464513.html

“The Payola scandal heats up,” History.com, Google, accessed July 15, 2018, http://www.history.com/this-day-in-history/the-payola-scandal-heats-up