[BC] The "Payola" issue

[Harold Hallikainen]

Stations, of course, could avoid any FCC problems by just saying "Warner
Music Group paid us to play this crap!.

Harold


> 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.
>
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