Blog Post

FMC: What of Payola?

[by Derek Slater] The afternoon panels focused on radio, specifically payola. The traditional points were made: it’s the public’s airwaves and this isn’t a competitive market versus the fact that payola is hardly different from product placement or any form of quid pro quo between a product producer and a promoter.

Something I didn’t know: paying for placement isn’t per se illegal, but failure to disclose is. One panelist suggested that payola regulations are simply about giving consumers full information about radio services to create a competitive market. It’s a fair point, but does product placement explicitly get disclosed for movies?

The debate (and prosecutions?) continue….