Sony BMG Pay $10 Million Settlement And Admit Payola

According to Rueters and The WashingtonPost.com. "Sony BMG, one of the world’s largest music  companies, will pay $10 million to settle a New York State probe into the way the music company influenced which songs were played on the radio, Attorney General Eliot Spitzer said on Monday."

"The probe centers on a number of "pay-for-play" practices, widely known as "payola," including paying independent promoters to help secure airtime for songs. Under the Sony BMG settlement, the company agreed to stop making payments to radio stations in exchange for airplay, Spitzer said."

"…as part of the settlement, Sony BMG admitted that payola "has continued to be an unfortunately prevalent aspect of radio promotion….Spitzer also said the payola investigation continues at the other three major record companies — Universal Music Group, EMI Group Plc, and Warner Music Group Corp., as well as the country’s largest radio companies."

"…Spitzer has also issued subpoenas to radio companies including Clear Channel Communications Inc., Viacom Inc.’s Infinity Broadcasting, Entercom Communications Corp. and Cox Radio Inc. The companies have said they ban the use of independent promoters…."

"…The attorney general saved his harshest criticism for the radio companies and called on the Federal Communications Commission, which licenses the airwaves, to be more vigorous in fighting payola."