UMG settles NY radio payola lawsuit for $12 miliion
Universal Music Group settled a lawsuit brought the state of New York regarding illegal bribes to radio station programmers. The settlement is part of an ongoing investigation into major recording label practices by New York State Attorney General eliot spitzer. The settlement follows similar ones by Sony BMG and Warner Music Group.
The payola cases are ironic. The major labels hold themselves up as victims of predatory P2P technology developers and music pirates. But they are hardly innocent and worthy of sympathy when they engage in their own illegal practices.
More from the article:
"Sources at Universal Music who requested anonymity for fear of angering Spitzer disputed those characterizations, saying that the company had merely argued that many of the practices cited in Thursday's settlement documents – such as phony call-in requests and so-called spin programs in which stations divulge that airplay has been paid for – do not violate any laws.
Those sources also said that despite Spitzer's allegations, the company's top executives were unaware of the practices described by Spitzer.
"You think that label presidents know what some promotion guy in Kansas is doing?" asked one Universal Music executive.
In an interview, Spitzer said that is precisely what he thinks.
"When a practice is this pervasive and has become almost standard fare, it's hard to believe most executives are not at least conscious of them, even if they don't know about the specifics," he said."
Post a reply