Radio Conglomerates Eyed in 'Payola' Probe

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By MICHAEL GORMLEY
Associated Press Writer

February 8, 2006, 7:10 PM EST


ALBANY, N.Y. -- New York Attorney General Eliot Spitzer said Wednesday he has subpoenaed many of the nation's largest radio conglomerates in his "payola" investigation of major artists and songs that he claims got air time because of payoffs by recording companies.

Spitzer wouldn't identify the major radio companies that have been subpoenaed or release the artists and songs that he claims benefited from the pay-for-play practice for cash, trips and gifts like the scandal that rocked early Rock n' Roll in the 1950s and 1960s.

"A lot of the major songs have been implicated in this and it showed how pervasive the payola infrastructure had become," Spitzer told The Associated Press. "Probably many of the songs that were beneficiaries of the payola scheme would have succeeded without it, but certainly payola became part of the promotional structure and was integral to the game to get songs to the top. Major artists, major songs were sent up the charts through improper payments to buy spins on the air that translated into sales."

Warner Music Group Corp. agreed last year to pay $5 million to settle its part of the investigation, and Sony BMG Music Entertainment agreed to pay $10 million.

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.

ABC News "Primetime" reported Tuesday that Spitzer is investigating the largest nine radio corporations -- including ABC -- in a scheme that involved Jennifer Lopez's "I'm Real" and John Mayer's song "Daughters." Songs by other artists are also being examined, including those by Jessica Simpson, Celine Dion, Maroon 5, Good Charlotte, Franz Ferdinand, Switchfoot, Michelle Branch and R.E.M., according to ABC. The radio companies that have received subpoenas control thousands of stations nationwide, including Clear Channel, Infinity which now operates as CBS Radio, Citadel, Cox, Cumulus, Pamal, and Entercom, ABC reported.

"Cox Radio has cooperated fully with Attorney General Spitzer's investigation," said Bob Neil, president and CEO of Cox, in a prepared statement. "Years before this investigation began, Cox Radio was the first radio group to terminate all relationships with independent record promoters to avoid any suggestion or appearance of `pay-for-play.' We continue to be a leader in our industry on this issue."

The other companies had no immediate comment.

In the 1950s and '60s, most payola involved direct payments of cash to DJs. Today, payola is in the form of "direct bribes" to radio programmers, including airfare, electronics, iPods, tickets to top sporting events and concerts; as well as payments to radio stations for expenses and for use in contests. Spitzer said companies had hired "independent promoters" to act as conduits for payments to radio stations and pay for "spin programs" to increase airplay of some recordings that are supposed to be based on popularity among listeners.

Spitzer said he had relied on civil laws in the payola case because the criminal laws are more specific and difficult to violate.

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Wonder if it affects any of our beloved radio stations.

how do you think peeps like kelly osbourn and ashely simpson get on the radio?

I know that "payola" exists on the radio in huge quantities because I can't explain to myself how some of the new music, that's terrible can be played in heavy rotation. My belief is that most of the payola's are not discovered by authorities.

also, alot of these artists perfom the big radio venues for free......that is a form of payola in my book

also, alot of these artists perfom the big radio venues for free......that is a form of payola in my book

Many times it's a write off for the label. Next time you see a big show note how many have albums out, or coming out. Those artists are often on a "promo tour" and often it hits when the big radio stations have these shows. Artists don't care as long as their per diam is paid, accomodations and rider requirements are met and they meet their contract requirement to promote the album to the label. :cool:

Those same artists that are on those big radio shows (track acts) will often be hitting 1- 3 other clubs that night for additional shows to pay the bills thanks to a shrewd agent.

Its a cycle - hit single, promotion, move units, get a gig, more promotion and on, and on, and on. :rolleyes:

Keeps advil in business in my book. :eek:

how do you think peeps like kelly osbourn and ashely simpson get on the radio?

Ashlee is easy - think about it - they promote Ashlee and they get Jessica for the next big promo thing. It's a trade off. Give the new artist a chance and the agent/manager will give them the bigger artist down the road for something else.

Kelly Osbourne totally parlayed her MTV gig into something else, IMO. Now, she's got her own issues. :confused: And don't even get me STARTED on Paris. :mad:

Alot of publicists do the same thing except with the press. The newer artist will get press and for the next issue, the mag gets a scoop or exclusive that they normally would not have gotten in the first place.

this is one of the major reasons why freestyle can't be on regular rotation. our artist don't have money to pay radio stations to play their songs. yes indeed I think that all radio stations have a program directors with fat pockets. they will never admit it but thats the way of the world.

well, its the same line up as the mohegan sun. I got more juicy details but I cant devulge them right now.