Payola probe under way

By Los Angeles Times

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New York Attorney General Eliot Spitzer's office is investigating whether the United States' largest record companies are skirting payola laws by hiring middlemen to influence which songs are heard on the public airwaves.

Spitzer's office served subpoenas last month on Sony BMG Music Entertainment, Universal Music Group, EMI Group and Warner Music Group, seeking copies of all e-mails, letters, contracts and other correspondence between the companies and the industry's leading independent promoters.

Radio stations and promoters have not been subpoenaed, sources said. News of the inquiry was first reported Friday in The New York Times.

The world of music promotion and influence peddling is a murky one usually kept out of public view. Independent promoters have figured out ways to get around laws banning payments to broadcasters to play specific songs without disclosing the practice to listeners.

Promoters pay radio stations annual fees that they say are not tied to airplay of songs. But critics say the payments represent an end-run around the law and influence what songs are played.

Radio airplay is considered the most powerful promotional tool for record companies. Many people buy records based solely on what they hear on the radio, which is why musicians and consumers say it is important that payments not influence the selection of songs.

Copyright © 2004 The Seattle Times Company

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