January 25, 1960
On this day the National Association of Broadcasters proposed that radio disc jockeys who were accepting payment from record labels for broadcasting specific songs should be charged a $500 fine and spend a year in prison.
The practice, known as “payola,” had provoked a thorough investigation by the NAB. The success of the television industry led to the decline of radio dramas, transforming radio into a platform for record companies.
Some producers said DJ’s wouldn’t play a record without a cash bribe. The Federal Communications Commission and Federal Trade Commission helmed investigations the year before, and the American Society of Composers Authors and Publishers, the group that distributes royalties from the use of artists’ music, went on strike to protest the broadcasters.
The end result was an amendment to the Communications Act of 1934 outlawing the pay-for-play system.
