While David Rehr would have you believe that the members of their association are pristine and pure companies that do nothing but good for local communities, the issue of Payola is alive and well in terrestrial radio.
This story carries additional interest because it involves a record label that caters to minority groups in the Latin American Community. As we have been writing about, minority groups have become big proponents of the Sirius and XM merger. It seems that for decades, minority groups have been neglected and ignored by the NAB membership, and to top it all off, they are having to pay for play on radio stations.
The case centers around allegations made by the former Fonovisa VP of Promotion Daniel Miles. He has stated that he was ordered to participate payola by his superiors, or lose his job. Miles was uncomfortable with the happenings, and states that he was fired when he refused to participate any further.
Now there has been a law suit filed, and the ramifications of it could be big. In the suit, filed in Los Angeles Superior Court, Miles alleges that between January and may of 2006 he handled roughly $720,000 worth of payola cash that was distributed in cash to program directors for playing specific music. Miles grew uncomfortable about the situation fearing another investigation similar to one he faced in 1995.
The suit was filed in November of 2006, but is now making news again, and seeing the subject matter at hand these days, we thought it appropriate to keep you informed.
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