Scathing report on payola in the American Latin music biz from the Miami Herald:

Edgar Alvarez quit being a promoter in Spanish-language radio two years ago. But on this afternoon, he is making some calls from the South Miami offices of his recently opened talent agency to show how his former business works.

First he calls a DJ at an Orlando station, telling her he has to get a song on the air. ''C'mon, Mami, tell me how much, I really need this song,'' he coaxes. ''Three thousand,'' she answers, her voice thin through the tiny speaker of Alvarez's cellphone.

The next call is to a promoter from Alvarez's native Puerto Rico. ''I'm doing a budget for three songs I have to break in Puerto Rico,'' Alvarez says. ''Uh-huh,'' an eager male voice replies. ''How much? Give me a total,'' Alvarez continues. ''Ten thousand,'' comes the answer. ''Cash?'' Alvarez asks. "Yes, yes.''

''But Papi, c'mon, how many stations?'' Seven, the voice replies, ticking off prices for FM stations on the island: $3,500 for one, $1,100 for another, $500 for a third. Alvarez curses under his breath as he hangs up. ''Five hundred is way too little — you know he's just keeping that for himself,'' he says.

Alvarez's exchange is just one example of how payola — the illegal practice of paying radio stations to play songs without disclosing the arrangement to listeners — riddles the fiercely competitive world of Spanish-language radio, where artists' careers and the fate of major record companies depend largely on what songs make it onto the airwaves.

It has been an issue since the late 1950s, when scandals and investigations led to current laws. But in Latin music, federal prosecutors say, the practice has become pervasive.

Because payola adds so much to the cost of promoting a recording — between 20 percent and 30 percent, according to former major-label employees — it cuts out most smaller, independent labels, typical sources for new genres and artists.

''There's so much great stuff out there, but it's not even in the same building as the stuff that's on the radio,'' said Elsten Torres, a songwriter with Warner Chappell Music Publishing. ``It's hurting the industry, and it's hurting the music.''
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