[BC] The "Payola" issue

[WFIFeng@aol.com]

This is an interesting story. I'm surprised it hasn't already been brought-up 
here in the Forum.

Willie...

(Quote)
WMG latest label to pay up for payola
Fri Nov 25, 2005 8:37 PM ET


By Brian Garrity

NEW YORK (Billboard) - New York Attorney General Eliot Spitzer has hooked a
second big fish in his ongoing payola crackdown: Warner Music Group.

The major label is coughing up $5 million and vowing to overhaul its radio
promotion methods to settle charges from Spitzer that the company engaged in
bribery, fraud and illegal payments to get its songs played on the air.

The deal, announced November 22, closely mirrors a $10 million pay-for-play
settlement Sony BMG entered with Spitzer in August.

Under the terms of the settlement, WMG acknowledged that some of its
employees pursued improper promotion practices. But the label did not admit
to the specific, sometimes sensational allegations that arose from Spitzer's
investigation.

Spitzer alleged that executives from Warner Bros. Records, Reprise, Lava and
Atlantic showered radio programmers with lavish gifts, trips, tickets to
high-profile events and cash in exchange for airplay. WMG acts allegedly
benefiting from pay-for-play tactics included the Used, Michelle Branch,
Toby Lightman, Josh Groban and Antigone Rising.

According to Spitzer, the company often passed along perks to radio stations
via indie promoters that included Michele Clark Promotions, Jeff McClusky
and Associates, Tri-State and Lawnman Promotions, with the label's indie
promoter budget as high as $100,000 per song.