July 26, 2005
Radio Payoffs Are Described as Sony Settles
By JEFF LEEDS and LOUISE STORY
To disguise a payoff to a radio programmer at KHTS in San Diego, Epic Records called a flat-screen television a "contest giveaway." Epic, part of Sony BMG Music Entertainment, used the same gambit in delivering a laptop computer to the program director of WRHT in Greenville, N.C. - who also received PlayStation 2 games and an out-of-town trip with his girlfriend.
In another example, a Sony BMG executive considered a plan to promote the song "A.D.I.D.A.S." by Killer Mike by sending radio disc jockeys one Adidas sneaker, with the promise of the second one when they had played the song 10 times.
The gifts, described in a $10 million settlement with Sony BMG that was announced yesterday by New York's attorney general, Eliot Spitzer, exemplify what Mr. Spitzer called a broad effort by the recording industry to curry favor with radio station programmers in exchange for their promises to play specific songs.
The focus of Mr. Spitzer's inquiry is now expected to shift to the other three major record companies - Vivendi Universal, the Warner Music Group and the EMI Group - and the radio companies whose employees have accepted gifts in exchange for playing songs. Mr. Spitzer's investigators have served subpoenas on several radio companies, including Clear Channel Communications and Emmis Communications.
...
http://nytimes.com/2005/07/26/business/26music.html?ei=5094&en=a99d20df580da46a&hp=&ex=1122436800&partner=homepage&pagewanted=print