Broadcast Companies Fined for Pay-to-Play

Four U.S. broadcast companies, together owning more than 1,500 radio stations, tentatively agreed to pay $12.5 million in fines in a pay-to-play music scheme.

In addition, the Federal Communications Commission and industry officials said the four conglomerates — Clear Channel Communications, CBS Radio, Entercom Communications and Citadel Broadcasting — agreed to provide air time for local artists and independent record labels, The Washington Post reported Tuesday.

The negotiated settlement should end an investigation into the practice known as payola, in which large record companies provide cash or other incentives to radio station employees in exchange for playing music by the companies’ artists, usually at the expense of lesser-known musicians, officials said.

It wipes payola off the radio dial, said FCC commissioner Jonathan S. Adelstein said.

If approved, the settlement be one of the largest penalties imposed at one time by the FCC — until the agency levies a proposed $24 million fine against Univision, the Spanish-language broadcaster accused of sidestepping its obligations to supply children’s educational programming, The New York Times said.