FCC SHOULD INVESTIGATE ‘PAYOLA’ IN RADIO, TV, ADELSTEIN SAYS
FCC Comr. Adelstein on Wed. said he was in talks with his fellow commissioners about launching a broad inquiry into alleged “payola” practices at TV and radio stations around the country. In a speech to the Federal Communications Bar Assn. (FCBA), Adelstein said the Commission needs to “get to the bottom” of allegations that some TV stations have done interviews during news programs with subjects who have been asked to pay a fee. Such shows would appear to the average person to be legitimate news programs, he said, and viewers might be unaware that money is changing hands.
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Also in the inquiry would be a sustained examination of allowing “independent promoters” who are paying radio stations, sometimes as much as $400,000, to offer consulting services on what should be played. Those producers, he said, appear to be banishing some artists -- even local ones -- from the airwaves while promoting others with whom they have a relationship. On radio, some artists have complained of having to play certain concerts or even cocktail parties in order to get play on certain stations, Adelstein said. “Each involves paying, either directly or in-kind, for access to the public airwaves -- with no disclosure,” Adelstein said. He said the commissioners heard a lot about the practice from local musicians in Charlotte, N.C., at a recent FCC hearing there looking at localism (CD Oct 24 p1).
Adelstein’s call comes after Sen. McCain (R-Ariz.) asked FCC Chmn. Powell to review federal sponsorship identification rules in light of recent “pay for play” allegations (CD Nov 5 p5). Adelstein said such an FCC inquiry would consider whether there’s evidence to form the basis for enforcement activities or changes in the FCC’s disclosure rules. He noted that “pay for play” isn’t illegal as long as the payment is disclosed to listeners or viewers. He cited allegations surrounding WFLA-TV (Ch. 8), an NBC affiliate in Tampa, that the station is only doing seconds-long disclosures in the credits at the end of the program, which otherwise looks like a news show. The station, which is owned by Media General, has been touted as an example how cross-ownership between TV and newspapers can benefit the public with more news resources, he noted. “It turns out there are more resources -- $2,500 buys you 4-6 minutes of airtime,” Adelstein said. A call to the station was referred to Media General’s hq in Va. A message left with a representative there wasn’t returned by our deadline.
Adelstein said other TV stations are reportedly running health segments featuring hospitals and medical centers that must pay for those stories. “These disguised infomercials are being dubbed as the latest descent into pay for play journalism. This commercialization of the news blurs the line between infomercial, infotainment and genuine information,” Adelstein said: “Is the entire broadcast day up for sale and if so, does the public understand the terms?… Payola in the news should be unthinkable.”
Adelstein said he understood that broadcasters need revenue, but it shouldn’t come at the cost of journalistic ethics. “Projecting the image of impartiality for a news program when it’s not may very well undermine the public’s trust in broadcasting even more than it already has been,” Adelstein said. The commissioner noted that it has been 40 years since the payola statutes on radio were enacted. “It’s time for the FCC to probe whether our rules adequately deter the newest practices that we're hearing about and whether these practices are happening at all,” he said.
Adelstein also said the FCC should consider the allegations during the license renewal process and encourage individuals to come forward with evidence of pay-for-play.
Adelstein made his case with the help of several one- liners. Citing a study by the Alliance for Public Campaigns that said infomercials garner more on-air time than news, he said: “We may be getting tighter abs, but we're getting a flabby democracy, perhaps.” He told the audience that if anyone wanted a digital copy of his speech, he would “appropriately flag it for you,” referring to the broadcast flag order on Tues. (CD Nov 5 p2). He said he was sure the speech would be picked up by a number of “legitimate” news outlets, including The Howard Stern Show. He was referring to the FCC’s recent declaration that portions of the Stern show were considered bona fide news programming for purposes of an exemption for equal time for political candidates (CD Sept 10 p9).