| Entertainment Business Truth -- Payola #3 [message #145231] |
Fr, 07 Oktober 2005 05:35 |
|
Second in a series of pieces telling the truth about corruption in the entertainment business.
http://www.history-of-rock.com/payola.htm
============================================================ ======================
Payola
Payola - The paying of cash or gifts in exchange for airplay. "Payola" is a contraction of the words "pay"
and"Victrola" (LP record player), and entered the English language via the record business. The first court
case involving payola was in 1960. On May 9, Alan Freed was indicted for accepting $2,500 which he claimed was
a token of gratitude and did not affect airplay. He paid a small fine and was released. His career faltered and
in 1965 he drank himself to death.
Before Alan Freed's indictment, payola was not illegal, however, but commercial bribery was. After the trial,
the anti-payola statute was passed under which payola became a misdemeanor, penalty by up to $10,000 in fines
and one year in prison.
By the mid- fifties the independent record companies had broken the majors stranglehold on airplay and BMI
licensed songs dominated the charts. In the wake of the quiz show scandals ASCAP (American Society of
Composers, Authors and Publishers) urged House Oversight Subcommittee Chairman Oren Harris to look into the
recording industry's practice of payola.
ASCAP, with its head in the sand, believed BMI licensed songs were hits only because of payola. With the
breakdown in morals, ASCAP believed these records were played so often by greedy deejays causing them to become
imprinted on unsuspecting teenagers. ASCAP who had always looked at rock and roll as a passing fad. With these
hearings they were trying to ensure that would be the case.
Prior to the beginning of the hearings the FTC filed complaints against a number of record manufacturers and
distributors. Those that wished to escape prosecution agreed to a 30 days Consent Order. Many of the companies
found themselves back where they had started and folded.
"The cancer of payola cannot be pinned on rock and roll." ....Billboard Magazine. Billboard stated payola was
rampant during vaudeville of the 20s, and the big band era of the 1930s and 1940s
The committee decided to look into deejays who took gifts from record companies in return for playing their
records on their shows. Fearing the worse the record companies began stepping forward and announcing that they
had given money to specific deejays. Soon twenty five deejays and program directors were caught in the scandal.
Among the more popular ones were Joe Niagara (WIBG, Philadelphia), Tom Clay (WJBK, Detroit), Murray "The K"
Kaufman (WINS, New York) and Stan Richards (WILD, Boston) The probe quickly focused in on the two top deejays
in the country, Dick Clark and Alan Freed.
Freed's broadcast alliances quickly deserted him. In late November, Freed was fired from both ABC-radio and
WNEW-TV. Clark, with more to lose, quickly gave up all his musical interests when ordered to do so by ABC-TV.
When asked to sign a statement denying involvement Freed refuse and was promptly fired from his job with WINS.
When Clark appeared to testify he brought Bernard Goldsmith a statistician. Goldsmith told the committee that
Clark had a 27% interest in records played in the past 28 months and those records had a 23% popularity rating.
The committee was stunned as they wondered what came first the chicken or the egg.
Clark's testimony began with telling the committee he had given up all outside interests connected with the
recording industry. He also said the only reason he had gotten involved with those businesses were for the tax
advantages. Clark admitted a $125 investment in Jamie Records returned a profit of $11,900 and of the 163 songs
he had rights to 143 were given to him.
When questioned about Jamie records it was discovered that Jamie paid out $15,000 in payola, but Clark denied
ever accepting any. The committee clearly didn't believe Clark, but he received just a slap on the wrist. In
fact, committee chairman Oren Harris called Clark "a fine young man."
Freed who refused to deny involvement wasn't so lucky. Though he would only receive a small fine and six months
suspended sentence his career was in tatters. Freed would die penniless, a bitter broken man, Jan 20, 1965 in
Palm Springs, California. He was forty three.
============================================================ ======================
Politics
|
|
|
