FCC Launches The Largest Payola Probe Since The 1960’s

Talks between the FCC and major broadcasters appear to have broken down as The LA Times reports that the government agency has formerly opened the largest payola investigation since the 1960’s. Formal requests for documents have gone out to Clear Channel, CBS Radio, Entercom, and Citadel Broadcasting "over allegations that radio programmers had received cash, checks, clothing and other gifts in exchange for playing certain songs without revealing the deals to listeners, a violation of federal rules".

The probe comes on the heals of criticism from NY Attorney General Elliott Spitzer  who is in the middle of his own probe of radio and the record labels and who feels the FCC has been soft on broadcasters.  The new probe could be a far greater threat to broadcasters than Spitzer’s since the FCC is free to investigate nationally and in addition to fines the FCC can pull valuable licenses if serious violations are proven.  Few expect that to happen any grand scale, but the probe promises difficult days ahead for an industry already battered by competition from iPods, satellite radio, and the the internet. 

And what this all means for indie music on the radio or perhaps even tighter playlists from scared programmers is anyone’s guess.