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Limp Bizkit’s CD
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Alan Freed coined the phrase "rock 'n' roll" and was the first to take the fall in the 1960s payola scandal.

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Context:

A playlist is a station's schedule of which songs will be played and how often they'll appear. An "add" is when a new song makes it into the rotation.

"Stuck," a song from Limp Bizkit's album, features the curious lyrics, "When it comes to greed you want to play that game bitch/Take a dash for my cash it's your ass that I'm blastin'."

The Federal Communications Commission's regulations for sponsorship identification state that the term "sponsored" has the same meaning as "paid for."

Pay-for-play is an idea that surfaced in the '70s. CBS Radio resuscitated it late last year, suggesting that its country stations might air paid programming similar to infomercials, but the company has backed away from the concept, according to Billboard magazine.

In 1973, the U.S. Justice Department launched Project Sound, an investigation into payola that netted few convictions but confirmed that record labels were paying off DJs with cash, cocaine and prostitutes.

KUFO made local news recently when it became the first Portland station to carry notorious New York shock jock Howard Stern's morning show.

Music Millennium owner Terry Currier says, "They're trying to sell that other 45 minutes they don't sell already to advertisers."

KNRK's Mark Hamilton says he considers pay-for-play "glaringly unethical."

Program directors at Z-100, KINK and KUPL told WW they don't foresee accepting label sponsorship of songs, but they say they'll watch how it works at KUFO.

KINK program director Dennis Constantine says he's not considering pay-for-play, but "I'm sure a lot of radio stations are looking at it right now."

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Music

Radio Racket
 
KUFO stuns the music industry by accepting cash to spin a disk
 
BY RICHARD MARTIN
rmartin@wweek.com

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KUFO operations manager Dave Numme says he had no idea he'd create such a stir: "I don't know what the big deal is about, other than people think it's something new."

Photo:
Michael Olfert

On Feb. 4, KUFO 101 FM made history. At 10 pm, the Portland station played a song called "Counterfeit" by Limp Bizkit, a hip-hop band that favors chugging, heavy-metal guitar riffs. Prior to airing the song, KUFO played a taped message: "The song you are about to hear is sponsored by Flip/Interscope." This seemingly innocuous announcement reverberated through the music industry like the shrill sound of an Emergency Broadcast Network test.

Outside of Portland, the response was intense. The New York Times published a cover story on KUFO that painted operations manager Dave Numme as a corporate sellout and quoted a Los Angeles program director as saying that pay-for-play is a "dastardly idea." Rolling Stone blamed KUFO for helping to ruin rock radio.

Why the fuss?

For the first time in the history of commercial radio, a station was admitting on air that it had accepted cash to broadcast a song. The amount of money was negligible: The station got $5,000 in return for spinning "Counterfeit" 50 times. But the practice, dubbed "pay for play," brought back memories of the payola scandals of the '60s and served as a reminder of just how bottom-line-oriented the radio business has become. It also raised a legitimate question of whether a radio station's "content," its music, is sacred, or whether it should be auctioned off to the highest bidder.

Numme is an unlikely radio rebel. The neatly coiffed 36-year-old operations manager, who favors blue jeans and white button-down shirts, has run KUFO since 1991, having landed the position after stints as a DJ and program director in Corvallis, Eugene and the Bay Area. The only other time Numme made news in Portland was shortly after his arrival seven years ago, when he transformed what was then a low-powered AM station known as KBBT (The Beat)--which has since relocated to 107.5 FM--into Portland's first alternative radio station. That move was a no-brainer: The rise of Nirvana and grunge had sparked a revolution in the rock radio business, and alternative stations popped up in most major markets before anyone in Portland took advantage of the situation.

But comparing what Numme did to The Beat with what he did last month on KUFO is like comparing Alanis Morissette to the Beatles.

"I feel like the poster child for something," concedes a beleaguered Numme. He says the idea for pay-for-play came after he consulted with a friend in the radio biz. Seated in his office, which he's decorated with framed gold and platinum records by popular alternative rock bands such as No Doubt, Bush and Everclear, Numme is stodgy about the details and won't even say whether Interscope was the first label he approached. At any rate, he made several phone calls (he won't confirm how many exactly) to executives at Interscope (he won't reveal whom exactly), made an offer (he won't disclose how much exactly) and eventually settled on a price. For $5,000, history was made.

Numme acknowledges that "Counterfeit" is heavier--or as he puts it, "edgier"--than other songs the radio station plays, from the streamlined grunge of Everclear to the bubblegum alterna-pop of Marcy Playground to the hard rock of Metallica. But he insists that Limp Bizkit would have made the cut even without the cash.

"We liked the song," he says.

His detractors think Numme's putting up a smokescreen.

Florida's Limp Bizkit couldn't crack the national charts but has found ample airtime on local station KUFO.

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There are two reasons Numme has become, in some circles, radio's answer to Dennis Rodman. First is the widespread belief that Numme picked a song that's so bad, his only incentive could have been cash ("You Gotta Have Faith," page 23). Second, Numme openly breached the unwritten rule that radio stations should play what listeners want to hear, not something that a record company was desperate enough to pay for.

Many local programmers say they're perfectly happy to let KUFO act as pay-for-play's guinea pig, if only because it could benefit their stations in the future. One man who's vehemently against pay-for-play is Mark Hamilton, the British-born, 35-year-old program director for rival alternative rock station KNRK 94.7 FM. He says financial pressures will make pay-for-play radio's quickie solution to any budgetary blips.

"That's why it's so scary," Hamilton says. "The short-term benefit is great. The long-term damage is that you have another influence in programming your station, and you're playing stuff you normally wouldn't."

The flipside is that for every company-sponsored song that gets airplay, an unpaid-for song gets stuck on the shelf.

Of the many mediums used to break bands, from MTV to music magazines to Web sites, radio is the most potent force. If pay-for-play catches on, however, this could change abruptly. Sean Nelson (left), a tall, bespectacled Seattle musician who looks more like a philosophy student than a rock star, has a cautionary tale. Nelson and his band Harvey Danger have played clubs in their hometown and in Portland regularly in the past four years, attracting scant crowds because few had ever heard of them.

Harvey Danger released its debut CD on a tiny New York independent label, the Arena Rock Recording Company, in early 1997, garnering positive reviews in the regional rock press. Nelson handed copies of the album to a few DJs at Seattle's KNDD, which like KNRK is owned by the Philadelphia-based Entercom, and they began to spin a variety of tracks from the CD. One song in particular, "Flagpole Sitta," caught on with listeners, who began phoning in requests for it with such regularity that the program director added it to the rotation.

When major labels--including Interscope--began hearing of this fluke success story, they pulled out their checkbooks and dangled impressive offers to Nelson and his bandmates, some as lofty as seven figures. By the time Harvey Danger signed a contract with the Polygram-distributed London/Slash Records, "Flagpole Sitta" had been added to dozens of playlists at rock radio stations, including both KNRK and KUFO, where it's now in heavy rotation. This is the kind of thing that used to happen all the time, but today Harvey Danger is a rarity of epic proportions.

Radio was a blessing to Nelson, but the specter of pay-for-play cools his warm feelings for the medium. "I am offended that it happened," he says of KUFO's deal with Interscope. "It's a strike against radio. If the playlists are available for purchase by major labels, then it'll make it harder for small labels to get on. And it's hard enough already."

Numme may be pay-for-play's poster boy, but he's certainly not the first figure to rankle the industry. Though radio insiders are loath to discuss it--WW's calls to Interscope and other major labels met with silence--many consider radio the communication industry's problem child. The first dark episode came in 1960 in a scandal involving disc jockey Alan Freed, the man who coined the term "rock 'n' roll." A musician born in Pennsylvania in 1921, Freed became one of the most respected men of the early rock era. He was a DJ at New York's WINS in 1954, where he first earned notoriety for refusing to play white musicians' versions of black musicians' songs, a common practice at the time. Through the late '50s, he was radio's best-known personality, appearing in rock-oriented films and hosting popular rock concerts. But in 1960, Freed became the industry's symbol of corruption when he was charged with 26 counts of bribery. The feds found that many DJs accepted bribes, and their investigation exposed the fact that getting a song on the radio was hardly a democratic process. Freed was convicted on a lesser charge and given a suspended sentence and a fine, but it nertheless ruined his career. Freed died, broke and broken-hearted, in 1965, maintaining that though he may have taken the money, he'd never played a record he didn't like.

Numme sings a similar refrain, but few are calling him Freed's kindred spirit. Nevertheless, Numme's willingness to accept money over the table in exchange for playing records is creating a similar type of stir.

Terry Currier, a frizzy-haired blues and rock aficionado who owns Music Millennium, says of pay-for-play, "It's above-the-ground payola. Somebody needs to step in and stop it now."

"Traditionally in radio, programming has been exclusive of sales," says Jim Kerr, an editor at the Los Angeles-based trade journal Radio & Records. "The critical element is crossing the line, and no one's crossed the line in such a critical manner."

Numme argues that his critics are missing two points. First, he says, what he is doing is simply a new version of a longstanding practice. For years record companies have bartered with everything short of cash for a spot on the playlist. Labels have been known to provide a radio station with an on-air performance by a major band, promotional items such as T-shirts or baseball caps, flights for programmers to concerts or music festivals in far-off cities and bands to play station-sponsored concerts.

"We don't want the T-shirts," says Numme. "We would much rather share in the risk and the opportunity of exposing these bands."

Numme views the pre-song disclaimer as an honest way of acknowledging that the station and the record labels are in cahoots, as opposed to the current method of accepting undisclosed perks.

"None of this is ever talked about," says Currier. "It's the shh-shh thing in the industry."

The other distinction Numme makes between payola and pay-for-play is that one is illegal and the other is not. "Payola is defined as getting compensation in the back room for putting a record on and not telling your boss," Numme explains. "It's about the record guy pulling up to the back of the station and unloading a bunch of cash or a hooker and some blow and giving it to a DJ at night and having them play the record. It's about trying to influence, in a surreptitious way, the process of getting records on the air. Pay-for-play is really about taking promotional dollars and routing them directly to the radio station instead of spending it in other ways."

According to the Federal Communications Commission, by telling listeners that the broadcast of "Counterfeit" was sponsored, KUFO did follow the rules.

The backdrop for Numme's decision to consider pay-for-play is the massive consolidation that has overtaken the radio industry. In the past three years, Numme's had three different bosses. In 1996 Henry Broadcasting sold KUFO to American Radio Systems. In 1997, CBS Radio purchased ARS, and with it KUFO.

Thanks to the 1996 Federal Telecommunications Act, which deregulated the radio industry, 4,400 stations in the United States have changed hands in the last two years, with prices spiraling. The total worth of the deals was $33 billion; in previous years, it would've been around $4 billion.In Portland, three corporations--CBS Radio, Entercom and Jacor--took control of the entire commercial radio dial, save KXL.

What this means for executives like Numme is a stricter reliance on the bottom line. Wall Street investors with stock in the publicly held companies that own the stations couldn't care less whether a program director adds Limp Bizkit or a yodeler to the playlist, as long as listeners keep tuning in, ratings remain high and advertisers keep advertising.

The result of the corporate buying binge is that the price of radio stations is skyrocketing faster than in Portland's similarly overblown housing market.

Dennis Constantine, program director of the adult-contemporary station KINK 102 FM--which, like KUFO, was recently purchased by CBS Radio--says it's an apt analogy. He compares the consolidation scenario to a person who buys a more expensive house even though his salary hasn't increased. "If suddenly you moved from a home that had a $500-a-month mortgage to one with a $1,000 mortgage, it'd be more difficult for you to buy groceries," he says. So you'd have to take on another job to afford the necessities.

For a radio station, one solution would be to up the amount of advertising. The FCC has no rules dictating how much time a station must devote to unpaid programming. Unfortunately for radio executives, there are still only 60 minutes in a given hour, and throwing off the balance between programming and commercials--which Constantine says is a 50 minute/10 minute split at KINK--risks alienating listeners.

Numme and his peers therefore must create new forms of revenue without taking away the lifeblood of a radio station--its music--in order to satisfy the investors who are anxiously watching the bottom line.

"The thing about consolidation," says Thom Moon of the Cincinnati-based trade journal Duncan's American Radio, "is that managers are under one dictate, and that's to pump up cash flow."

Numme says pay-for-play will continue at KUFO--though he refuses to share what other deals he has in the works. Other local radio executives say they are considering following suit.

"We've started talking about it," says Cary Rolfe, program director of the country station KUPL 98.7 FM. "I think every station in America is talking about it. We're being pressured to make money."

In some respects, pay-for-play is the logical extension of a culture in which the Rolling Stones have sold their songs to companies such as Microsoft and the Verve has turned its hit "Bitter Sweet Symphony" into a Nike ad.

The fear, says Music Millennium's Currier, is that "you're going to have a company like Sony buying 40 percent of a station's airtime and shoving things down people's throats."

"I can see what's going to happen," says KNRK's Hamilton. "The [radio executives] will have a meeting, see that they're a little short of cash, and call Capitol Records and say, 'What will you pay us $5,000 to play?'"

 --Patty Wentz contributed to this report.

Originally published: Willamette Week - April 15, 1998

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