EMI Agrees to Fine to Resolve Payola Case

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EMI AGREES TO FINE TO RESOLVE PAYOLA CASE
[SOURCE: New York Times, AUTHOR: Jeff Leeds]
The EMI Group, the music giant, agreed yesterday to pay $3.75 million to resolve accusations of paying radio programmers to play specific songs, becoming the last of four major companies to reach a settlement as part of an investigation by the New York attorney general. The office of the New York attorney general, Eliot Spitzer, which announced the settlement yesterday, released e-mail messages and other documents showing that EMI executives agreed to give radio programmers Rolling Stones tickets or offered direct cash payments to stations for airplay of specific songs. Federal and New York state laws prohibit broadcasters from accepting payments of cash or anything of value unless the arrangement is disclosed to listeners. EMI, the smallest of the four major companies in terms of sales of new releases in the United States, offered an acknowledgment that echoed its rivals. The company said certain employees had "engaged in some promotional activities that were wrong and inappropriate." EMI also agreed to a series of changes, including a prohibition on providing cash for use in radio contests. The company had instituted stricter policies on its promotion practices last year after Mr. Spitzer started his inquiry. With inquiries into the conduct of the four record giants now resolved, state investigators are expected to focus on large radio corporations, including CBS Radio and Clear Channel Communications. Mr. Spitzer filed a lawsuit against one broadcaster, Entercom Communications, in March after settlement discussions foundered. The Federal Communications Commission is seeking documents from the broadcasters in connection with its own payola inquiry.
http://www.nytimes.com/2006/06/16/business/worldbusiness/16music.html
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* EMI Settles Spitzer's Payola Allegations
http://www.latimes.com/business/printedition/la-fi-emi16jun16,1,50886.st...


EMI Agrees to Fine to Resolve Payola Case