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FCC announces payola settlement

April 14, 2007|From the Associated Press

Representatives from Clear Channel and Citadel did not return calls for comment.

Peter Gordon, founder of Thirsty Ear Recordings in Norwalk, Conn., led the separate negotiations on behalf of the independents and said the "real time commitment" from broadcasters would give local artists a chance to get some airplay at hours normally dominated by songs from major labels.


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"We want to create the cycle and then grow it," Gordon said. "This is the beginning, not the end. It's a tangible plan to get traction in the market."

But Porter said that deal was too broad and unenforceable. "There's no checks and balances," he said.

Gordon acknowledged that the broadcasters' participation was voluntary and said there was no set date by which they must provide airtime for independent or local artists.

The consent decree is the second-largest penalty ever assessed by the FCC, trailing only a $24-million settlement reached with Univision Communications Inc. regarding children's television obligations.

Breaking down the fine, Entercom will pay $4 million, Clear Channel owes $3.5 million, Citadel was fined $2 million and CBS will pay $3 million.

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