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Payola Probes Increase Price of Summer Radio Fests

New York State Attorney General Eliot Spitzer’s payola investigations, together with corresponding settlements with three of the four major record companies, have changed the way labels currently approach radio promotion, in turn affecting this summer’s radio station-sponsored festivals, Yahoo writes.

Although label promotion departments used to book their star bands at these radio shows for free in exchange for airplay, today, these acts want cash. With bands wanting more money to play at stations’ events, keeping entrance fees down has been challenging.

Ray Steinman, president of Florida-based Bralco Group - a company providing national special events production and consulting - said: “What makes it harder and harder each year is that the margins are going down a bit, and the production costs keep going up. We’re still trying to keep a reasonable ticket price because we want a lot of people to come out.”