Q&A: what relationship do music companies and radio stations have? Who pays whom to play an artists music?
by Verbunkos
Question by Big Dave: what relationship do music companies and radio stations have? Who pays whom to play an artists music?
because surely radio is doing the artist a favour by playing their songs, thereby advertising the artist for free. So why should radio companies have to pay the record companies royalties to play their music. without radio, a huge chunk of the artists income would disappear cause unless they hear it in some club somewhere or on tv, then the mainstream public isnt going to hear it.
Best answer:
Answer by jbstephenson00
Technically, it is against the law for record labels to pay radio stations to play their music. It’s called “payola,” but it still happens. There has been a big investigation the past couple of years by Eliot Spitzer, NY’s attorney general, and Sony/BMG, Warner Music Group, and Universal Music Group have all settled for $ 10, 5, and 12 million, respectively, with all the money going to charity. I think now he’s investigating the majore radio conglomerates, like Clear Channel.
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