Chapter 14: Rock and Roll Pt. 2
The practice of record companies or promoters offering payments or other incentives to radio disc jockeys or stations in exchange for airplay—known as payola—was widespread throughout the early to mid-20th century. However, it became a national scandal in the 1950s during the rise of rock and roll, revealing the extent to which radio playlists could be manipulated behind the scenes. This exposure led to government investigations and crackdowns that have continued, intermittently, into the 21st century. To avoid legal consequences, many in the industry began relying on third-party promoters to broker these deals. The term payola combines “pay” with “Victrola” (an early brand of record player), capturing the idea that hits could be manufactured through financial influence rather than public demand.
The effort to secure music promotion through gifts or favors has deep roots in the history of popular music. As early as the vaudeville era, performers were often bribed with cigars, alcohol, or songwriting credits to feature new Tin Pan Alley songs in their acts. These tactics continued into the mid-20th century; for instance, disc jockey Alan Freed famously promoted Chuck Berry’s “Maybellene” in exchange for a co-writing credit. While such practices were long considered part of the industry’s informal economy, the rise of rock and roll prompted major record labels to crack down on independent labels and DJs under the banner of payola, as a means of regaining control over the rapidly shifting market.
During this period, record sales surged from $213 million in 1954 to $603 million by 1959. Much of this growth favored small independent record labels, which thrived by quickly identifying and promoting new talent that appealed to the teenage market driving the rock and roll boom. Unlike the more cautious major labels, which were slower to embrace the raw energy and youth-oriented sound of early rock, independent labels eagerly filled the gap—signing artists who were often overlooked by the mainstream industry. Their willingness to take risks, along with their close relationships with influential disc jockeys, allowed them to break new records on the airwaves and reap the profits. Since radio play was essential to a record’s success, disc jockeys and stations held enormous sway over which songs reached listeners, giving independent labels strong incentives to use payola tactics to compete in the crowded market.
While most radio stations built their playlists around the Billboard charts, major Top 40 stations in large markets had the power to introduce new records and help propel them nationally. To secure this coveted airplay, record company promoters frequently offered incentives to disc jockeys, program directors, and station managers. These inducements ranged from cash and luxurious promotional trips—such as weekend getaways in the Bahamas—to partial ownership in songs, artists, or even labels. Technically, accepting such gifts or compensation wasn’t illegal. However, the law required that DJs both report the benefits as taxable income and disclose the arrangement on air—requirements that were often ignored.
The payola scandal erupted when major labels aggressively pursued independent labels and DJs, drawing the attention of congressional committees, the Federal Trade Commission (FTC), and the Federal Communications Commission (FCC). The fallout resulted in the dismissal of many disc jockeys, including Freed, and compelled radio stations to overhaul their programming to maintain their FCC licenses. The scandal portrayed rock and roll as lowbrow music whose success was artificially engineered through bribery, suggesting that American youth were manipulated victims of unscrupulous marketing schemes. From the perspective of many independent labels, DJs, and artists, however, these promotional tactics were simply a continuation of longstanding industry practices.
Between 1959 and 1960, government agencies launched a series of investigations into the widespread use of payola in the music industry. The Federal Trade Commission charged several record companies and distributors with unfair trade practices, while the New York district attorney convened grand jury hearings into allegations of commercial bribery involving prominent disc jockeys, including Alan Freed who was ultimately convicted in 1962 on two counts. In early 1960, the U.S. House Legislative Oversight Committee, initially investigating rigged television game shows, broadened its focus to include payola. During these hearings, numerous DJs testified to accepting cash, gifts, and royalties in exchange for promoting specific records. The scandal destroyed Freed’s career; he lost his radio and television shows, was blacklisted from the industry, and died a few years later in relative obscurity and financial hardship.
The scandal prompted new legislation that criminalized payola and subjected radio stations to increased federal oversight. This regulatory shift enabled major record labels to tighten their control over radio playlists. In an effort to maintain their broadcasting licenses and avoid further scrutiny, many stations reduced airplay for Black artists. With the influence of independent DJs and small labels curtailed, major labels sought new ways to reach the rapidly expanding teenage market drawn to rock and roll.