CBS Radio Settles With NY Over Payola

CBS RADIO SETTLES WITH NY OVER PAYOLA
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
CBS Radio has paid $2 million to settle with the State of New York over charges of payola and has agreed not to use independent promoters to gain radio station airplay for its music. But it has not admitted to any wrongdoing and said it was settling because that outcome was better for its company and investors than a drawn-out court fight. According to state Attorney General Eliot Spitzer, in addition to the money, CBS has agreed to "undertake company-wide reforms, including the immediate cessation of receiving payments and other inducements from record labels in exchange for airplay; discontinue using independent promoters as a pass-through for securing airplay; hire a compliance officer to monitor promotion practices; and implement an internal system to detect any future abuses." The settlement was actually the smallest of four that have been struck between the state and record companies over payments in cash and merchandise--vacation packages, gift cards, etc.--for getting songs spun on the radio.
http://www.broadcastingcable.com/article/CA6383282.html?display=Breaking...

* Commissioner Adelstein Commends New York Attorney General Payola Settlement With CBS Radio
"I commend Attorney General Eliot Spitzer for once again achieving a breakthrough with this settlement. CBS Radio is leading the radio broadcasting industry by agreeing to improve its practices. This should provide new fuel to drive the FCC payola investigation to completion. Since payola saps the vitality out of radio, this is a win not only for listeners everywhere, but also for the radio industry itself."
http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-267990A1.doc

* CBS Radio Tightens Policies in Settlement Over Payola
http://www.nytimes.com/2006/10/20/business/media/20payola.html

* CBS Radio to Pay $2 Million To Settle Payola Probe
http://online.wsj.com/article/SB116129250171298118.html?mod=todays_us_ma...

* CBS Radio Agrees to Pay $2 Million to Settle Payola Probe
http://www.latimes.com/business/printedition/la-fi-cbs20oct20,1,1431723....