Radio Station "Payola", Settled
Posted: Thu Nov 24, 2005 9:48 amWhat a bunch of shit..A lousy 5 million, and they're off the hook...In my mind, it was worth the fines...
Here ya go, from the good ol Los Angeles Times...
http://thestar.com.my/news/story.asp?fi ... &sec=world
Warner settles pay-offs probe
ALBANY (New York): Warner Music Group Corp has agreed to pay US$5mil (RM18.8mil) to settle an investigation into payoffs for radio airplay of artistes, New York Attorney-General Eliot Spitzer said.
Warner is the second major recording company to reform and settle with Spitzer in a practice the attorney-general said was “pervasive”. In July, Sony BMG Music Entertainment agreed to pay US$10mil (RM37.7mil) and stop bribing radio stations to feature artistes.
“Unfortunately, other companies continue to engage” in the practices, Spitzer said on Tuesday.
“I applaud Warner's decision to halt this conduct, cooperate fully with my office, and adopt new business practices.”
The money that Warner Music has agreed to pay in the civil settlement will be distributed by the Rockefeller Philanthropy Advisors to New York State to fund music programmes in the state.
“The reforms we have agreed to with the attorney-general are consistent with the internal reforms that our new management team implemented earlier this year,” said Warner Music spokesman Will Tanous.
“We consider this to have been a valuable process. From our perspective, radio cannot be too consumer-driven. The music that people hear on the radio always should represent the highest quality the industry has to offer.”
Spitzer said the settlements with Sony BMG, a joint venture of Sony Corp and Bertelsmann AG, and Warner should benefit artistes and consumers, who can expect a wider range of artistes on the airwaves based on “artistic merits.”
“Artistes, especially new artistes and lesser known artistes who did not have major backing, should find a more open environment to have their music heard and hopefully succeed,” said Spitzer, a Democrat running for governor in 2006.
A 1960 federal law and related state laws bar record companies from offering undisclosed financial incentives in exchange for airplay.
The practice was called “payola,” a contraction of”pay” and “Victrola,” the old wind-up record player. – AP
Here ya go, from the good ol Los Angeles Times...
http://thestar.com.my/news/story.asp?fi ... &sec=world
Warner settles pay-offs probe
ALBANY (New York): Warner Music Group Corp has agreed to pay US$5mil (RM18.8mil) to settle an investigation into payoffs for radio airplay of artistes, New York Attorney-General Eliot Spitzer said.
Warner is the second major recording company to reform and settle with Spitzer in a practice the attorney-general said was “pervasive”. In July, Sony BMG Music Entertainment agreed to pay US$10mil (RM37.7mil) and stop bribing radio stations to feature artistes.
“Unfortunately, other companies continue to engage” in the practices, Spitzer said on Tuesday.
“I applaud Warner's decision to halt this conduct, cooperate fully with my office, and adopt new business practices.”
The money that Warner Music has agreed to pay in the civil settlement will be distributed by the Rockefeller Philanthropy Advisors to New York State to fund music programmes in the state.
“The reforms we have agreed to with the attorney-general are consistent with the internal reforms that our new management team implemented earlier this year,” said Warner Music spokesman Will Tanous.
“We consider this to have been a valuable process. From our perspective, radio cannot be too consumer-driven. The music that people hear on the radio always should represent the highest quality the industry has to offer.”
Spitzer said the settlements with Sony BMG, a joint venture of Sony Corp and Bertelsmann AG, and Warner should benefit artistes and consumers, who can expect a wider range of artistes on the airwaves based on “artistic merits.”
“Artistes, especially new artistes and lesser known artistes who did not have major backing, should find a more open environment to have their music heard and hopefully succeed,” said Spitzer, a Democrat running for governor in 2006.
A 1960 federal law and related state laws bar record companies from offering undisclosed financial incentives in exchange for airplay.
The practice was called “payola,” a contraction of”pay” and “Victrola,” the old wind-up record player. – AP
). It doesn't bother me...in fact, it makes me laugh that someone can be so obvious of an idiot. Thanks for the comic relief!! 