Industry Waits Anxiously As NY Payola Probe Continues

Digital Music News reports that, "as the dust settles on a recent payola decision involving Sony BMG, other major labels are awaiting their fate...Spitzer has indicated that the recent Sony BMG settlement will serve as a template for future label actions....That is not exactly what some label executives are expecting, with label sources describing a palpable sense of fear over potential head-rolling and big-name takedowns".

"Meanwhile, Spitzer has been busy mobilizing the FCC camp into action. An expanded federal probe has been publicly embraced by FCC commissioner Jonathan Adelstein, though some wonder just how much bite and follow-up the agency will actually deliver. Spitzer has issued subpoenas against various radio giants as part of his investigation, including Clear Channel, Cox Radio, and Infinity..."

And at the same time we're certain  that most label promo VP's and attornies (not to mention the few indy promoters still left standing) are in the back rooms trying to figure out new ways around the rather vague laws that govern payola. Stay tuned...