It's a safe bet that most radio listeners have never heard of rock singer Matthew Harrison. The owner of tiny Third Monk Records, which released Harrison's album, says there's a simple reason: The company can't afford the hidden costs of obtaining radio airplay.
Jeff Robinson, the label's sole proprietor, said he doesn't have the money to hire independent promoters who heavily influence station playlists.
"They've got it locked up and there's absolutely no room to do what I'm trying to do," Robinson said. "And if you can't get exposure for your product, you'll never be able to sell any records."
For 40 years, federal law has prohibited broadcasters from accepting money or anything of value in exchange for playing songs without disclosing the practice to listeners. But a loose-knit cadre of independent promoters dodges the anti-payola law by paying broadcasters annual fees they say are not tied to airplay of specific songs.
For their services, the promoters charge record companies as much as $4,000 a song to obtain airplay for new releases, according to promoters and record executives. That costs the major record conglomerates an estimated $100 million a year. But it's a price tag that's out of reach for Third Monk and other small labels.
The independent labels' fears are increasing because playlists are controlled by fewer and fewer programmers. The nation's biggest broadcaster, Clear Channel Communications Inc., recently limited the number of promoters with access to its stations to six. The small labels worry that such moves could raise promoters' prices even further.
"The game is stacked against every little guy," said Dave Lebental, president of small rock label Pinch Hit Records. "It's not set up for outsiders to come in. It's not a wide-open marketplace."
Artists who are not signed to record deals with major labels are unable to compete on a level playing field, "strictly on the basis of money," said Robinson, who recently sent a memorandum outlining his complaints to the Federal Communications Commission.
Though some independent labels can afford to hire an independent promoter, major labels can ensure their own songs receive top priority by raising the ante. The major labels bid up the promoters' base rates and offer bonuses for getting a song added at a specified number of stations.
To compete, the small labels sometimes offer extra incentives for an independent promoter to work their record, including cutting the promoter in on a percentage of album sales revenue.
