Announcemnt Today On Sony BMG Payola Settlement With NY

According to Digital Music News, "New York attorney general Eliot Spitzer is expected to reveal details today on a payola settlement involving Sony BMG. Talk of an agreement was bubbling over the weekend, and now a Spitzer press conference is scheduled for 11 AM EST in New York. The settlement could offer a template for other major labels, all of whom have been responding to subpoenas from Spitzer’s office."

"A sizeable fine is reportedly part of the package, alongside more stringent guidelines regarding the use of independent promoters and the delivery of gifts to specific radio stations."

"The Spitzer actions come at a bad time for labels, though a reduction in the use of independent promoters can be viewed as a positive. The promoters, whose role has been seriously diminished over the past few years, have typically served as liaisons to broker pay-for-play arrangements. That has created a major financial drain for major labels, with radio still carrying the ability to make-or-break certain tracks. Now, a more level playing field could calm the spending frenzy, helping majors trim radio promotion budgets considerably."