A Number One Radio Hit Costs $200,000, According to One Label Head (2024)

Music

Coach K, co-founder of the hip-hop label Quality Control, talked about the price of radio promotion at the recent Revolt Summit

In April, P. Diddy’s Revolt Media announced plans for a “Hip Hop Summit,” with Diddy promising to “empower young people with sessions on the issues they care about.” “From entrepreneurship and economic empowerment to social justice, we’ll have the provocative conversations not happening anywhere else,” he added.

Sure enough, in a session that featured the rapper 2 Chainz and Coach K — who helped found the label Quality Control, known for breaking Migos, Lil Yachty, and Lil Baby — there was a brief-but-provocative detour into the cost of radio promotion.

“Everything costs money, it’s the way of life,” Coach K says. Radio is no different. “When you sign an artist, [they’re like], ‘so, when am I going to radio?'” the executive continues. “To take a record that y’all see on the radio become Number One, that’s $200,000.”

Coach K did not say what the money was needed for or how it was spent. A representative for Coach K did not immediately respond to requests for comment.

In an August article in Rolling Stone, radio veterans detailed the process of buying their way onto the radio chart by paying to get added to different stations’ playlists. “At a format like Triple A, it probably averages about $500 [per add],” one radio promoter explained. “In Hot AC and Top 40, could be anywhere from $1,000 to $2,000 depending on the competition.”

Two other radio veterans estimated that the total cost of promoting a song to “urban” radio and transforming it into a hit was between $100,000 and $125,000. Coach K’s estimate of $200,000 suggests that burden for artists hoping to win at radio today might be even higher.

However, the cost is down somewhat compared to the 1990s. In Hit Men: Power Brokers and Fast Money Inside the Music Business, Fredric Dannen’s detailed history of radio pay-for-play, he writes that it cost more than $350,000 to get Semisonic’s “Closing Time” significant airplay in the Alternative, Top 40, and AC formats. Despite that expense, “Closing Time” did not become a Top Ten hit.

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A Number One Radio Hit Costs $200,000, According to One Label Head (2024)

FAQs

A Number One Radio Hit Costs $200,000, According to One Label Head? ›

“When you sign an artist, [they're like], 'so, when am I going to radio?' ” the executive continues. “To take a record that y'all see on the radio become Number One, that's $200,000.” Coach K did not say what the money was needed for or how it was spent.

Is it illegal to pay for radio play? ›

Payola, in the music industry, is the illegal practice of paying a commercial radio station to play a song without the station disclosing the payment. Under U.S. law, a radio station must disclose songs they were paid to play on the air as sponsored airtime.

Who uses payola? ›

Rolling Stone obtained messages from 2019, exposing labels paying radio stations to play particular songs from certain artists. Shawn Mendes, Ed Sheeran and Panic! at the disco were among the bland artists getting a push from the cheating.

Does payola still exist today? ›

Numerous cases of payola have still occurred since then, with some record companies doing what any valuable business does – adapting. Payola continues to divide the music industry today. Recent probes have found that middle-men and quid pro quo agreements still exist, although it is not as prevalent as it once was.

Do artists get paid every time their song is played on the radio? ›

As we've mentioned earlier, in most markets, both songwriters and recording artists are typically paid royalties any time their music is played on the radio.

Do radio stations have to pay every time they play a song? ›

In most cases, radio stations do not pay artists directly to play their songs. Instead, they generate revenue through advertising and sponsorship. Artists and their record labels often invest in radio promotion to increase the chances of their songs being played on the air.

Is Spotify payola illegal? ›

Payola, the shady practice of buying plays and playlist placements, can damage your music career as it violates Spotify's (and other platforms') rules.

Was payola illegal in the 50s? ›

After Freed went down in 1960, Congress amended the Federal Communications Act to outlaw “under-the-table payments and require broadcasters to disclose if airplay for a song has been purchased.” Payola became a misdemeanor, with a penalty of up to $10,000 in fines and one year in prison.

Did Alan Freed take payola? ›

Legal trouble, payola scandal

He initially denied taking payola but later admitted to his fans that he had accepted bribes. Freed refused to sign a statement for the FCC while working at WABC (AM) to state that he never received bribes. That led to his termination.

What is the punishment for payola? ›

It is a criminal offense, subject to a fine of not more than $10,000 or imprisonment of not more than one year, or both, for any employee to fail to disclose to the Station any acceptance or agreement to accept from any person, other than the Station, any money, service, or other valuable consideration in exchange for ...

What did payola do in 1960? ›

The 1960 amendments to the 1934 Federal Communications Act put heavy constraints on payola, requiring full public disclosure when “a record company or its agent pays a broadcaster to play records on the air.” The 1960 amendments criminalized any action that breached the disclosure rule.

What is a payola slang? ›

noun. , Informal. a secret or private payment in return for the promotion of a product, service, etc., through the abuse of one's position, influence, or facilities.

Is pay for play illegal? ›

California passed a law to stop 'pay to play' in local politics. After two years, legislators want to gut it.

What is the pay to play radio scandal? ›

In November 1959, in closed and open sessions before the U.S. House Oversight Committee, 335 disc jockeys from around the country admitted to having received over $263,000 in “consulting fees.” That figure was only the tip of the payola iceberg (before the hearings, Phil Lind, a DJ at Chicago's WAIT had confessed that ...

How can I legally play music on the radio? ›

When to get permission. If you perform music, play recorded music on the radio, or stream (non-interactive) online, you need to obtain a public performance license. Artists typically do not need to secure public performance rights for radio because they are covered by the station.

How much are the royalties for radio play? ›

Now, the amount of money in those instalments depends on the size of the station's listenership. BBC Radio 1, for example, pays PRS £13.63 per minute, while BBC Radio 2 offers PRS a tasty £24.27 per minute. BBC Radio 6 Music, on the other hand, pays just £5.25 per minute.

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