In the agenda for next week’s FCC meeting, one of the items to be discussed is the proposed acquisition by Citadel Communications of the radio stations currently owned by ABC Radio, a subsidiary of the Disney Company. As Citadel is one of the broadcasters against which payola issues have reportedly been raised, certain parties
Payola and Sponsorship Identification
$12.5 Million Fine For Payola Violations
For weeks, there have been rumors that the FCC would soon settle allegations of payola against four of the nation’s largest radio operators. According to an article in the New York Times, a settlement has in fact been reached – resulting in a $12.5 million fine. Coming on the heels of the rumored $24 million…
What’s Up in Washington for 2007?
About this time every year, predictions are offered as to what will happen in the coming year. Since everyone else does it, we’ve offered our own predictions as to what Washington has in store for the broadcast industry in 2007. Find a copy of our predictions in the memo on our firm website, here. …
Payola Settlement in the Works?
This article is no longer available. For more information on this topic, see $12.5 Million Fine For Payola Violations
FCC Investigates Video News Releases
Today, press reports stated that the FCC has sent letters of inquiry to 77 television stations inquiring about their use of Video News Releases (VNRs) without properly notifying their audience about the source of such releases. VNRs are essentially pre-produced segments provided to television stations for inclusion in their programming. The Washington Post carried a story, here, describing some of the stories which triggered the FCC investigation. These reportedly included a report from an electronics show used by several TV stations in their news reports. The producer of the report had been paid by the electronics manufacturers featured in the story for including their products in the story.
The FCC released a Public Notice in April, 2005 detailing its policies on VNRs. The Public Notice makes clear that a station must disclose who paid for material broadcast on a station, whether or not the station received the consideration. Clearly, if an advertiser paid a station for airing a news report, the station would be required to disclose the payment. But the Public Notice makes clear that the station also owes its audience a disclosure even if it received no consideration, if the party that produced the material broadcast on the station received some consideration, and the station could discover that consideration by asking the producer if he or she was paid or through other means of reasonable investigation. Continue Reading FCC Investigates Video News Releases
