The music industry is buzzing over this morning’s announcement that NY Atty. General Elliot Spitzer has filed suit against Entercom, the owner of 105 radio stations nationally.
"By accepting secret payments in exchange for air time, Entercom compromised its radio programming and violated state and federal laws. What makes this case especially egregious is the extent to which senior management viewed control of the airways as an opportunity to garner illegal payments from record labels," said Spitzer.
Some of the emails and statements quoted in the suit are priceless:
- A memo from a programmer at WKSE in Buffalo in 2003 to Columbia Records stated: "Do you
need help on Jessica (Simpson) this week? …. if you don’t need help I certainly don’t need to play it."
- In another a station manager described how he preferred to deal with record companies instead of independent promoters because record companies were more generous:
"As of this date I choose not to work with an ‘indie.’ My program director Dave Universal is vehemently opposed to working with an indie…..Dave generates $90,000+ in record company annually for WKSE. I receive a weekly update of adds and dollars from Dave ….Forcing Dave to work with an indie at this time is the wrong move."
- A PD complaining about using a paid CD previews program: "Are the few dollars earned with the CD previews worth killing our TSL (time spent listening) on the weekends?"
An Entercom executive replied: "These are not optional. They come from corporate and generate millions of dollars for Entercom."
Today’s lawsuit can only serve to increase consumer cynicism about broadcast radio. Read more in an Newsday/AP story here; or HITS has it’s own take on events available here. A Reuters story is here and how Wall Street viewed the news can be found via MarketWatch here.
