Thursday, April 19, 2007

Radio Giants in Payola Scandal

CBS Corp., Clear Channel Communications Inc. and two other radio station owners agreed to pay a combined $12.5 million to settle investigations into whether they received secret payments to play certain songs, the Federal Communications Commission announced on Friday. The consent decrees between the agency and the four broadcasters came more than a year after the FCC started investigating possible secret payments made by the music industry to radio stations in exchange for playing certain songs on air. The practice is also known as "payola."