p2pnet.net News:- You have to laugh, but dryly.

Innocent men, women and children who share files with each other online are villified in the mainscream media as ‘criminals’ and thieves’ without there being a shred of proof that their activities harm anyone, least of all the multi-billion-dollar Big Four Organized Music labels who claim the practise is “devastating” them.

Yet let one of the corporate entertainment companies be caught red-handed at bribery and it’s all terribly low-key —– warm and fuzzy, almost.

The Big Four, Vivendi Universal, Warner Music, EMI and Sony BMG were wracked up by New York attorney Eliot Spitzer, eventually reaching “setttlements” without having to admit they’d done anything wrong. And now CBS Radio, a unit of CBS Corp and one of the largest major-market radio operators in the US, and New York attorney general Elliot Spitzer have reached a “settlement” over payola allegations, says RWOnline.

For payola read ‘bribe’ and for that read, “the practice of offering something (usually money) in order to gain an illicit advantage”. For “illicit,” read illegitimate or prohibited.

Payola, “has basically been around since the beginning of radio, and despite a crackdown every few years, it doesn’t seem like it’s ever going to go away,” says Techdirt, continuing:

“The way it’s described may change, but the idea is still the same: music labels and promoters paying radio stations to play their songs. That’s why it’s not at all surprising to see that CBS Radio has agreed to pony up $2 million to settle payola charges against it, though, it seems unlikely to stop anyone from continuing the practice. What is more amusing, though, is the way that CBS described the settlement. They seemed almost happy about it: ‘CBS Radio is pleased to end this two-year music investigation without litigation.’ The station then goes on to talk about how they’re paying $2 million without admitting guilt, and then says it was really all the fault of two employees and how this settlement is such a great thing since it was worked out in ‘the spirit of mutual cooperation’.”

As Media Buyer Planner describes it, “CBS will adopt stronger policies on its stations’ dealings with record labels and make a $2 million payment to New York charities as part of a settlement with NY Attorney General Elliot Spitzer over illicit pay-for-play practices.

“Spitzer claimed that certain stations owned by CBS Radio openly solicited illegal financial benefits, expensive vacation packages, gift cards and other valuable items from record labels in exchange for playing the labels’ songs. The stations also received funds from independent promoters, or ‘indies,’ upon agreeing to add certain songs to the stations’ playlists.

“In addition to settlements with all four major record companies, SonyBMG, Warner, Universal and EMI, the Attorney General’s payola investigation has resulted in a lawsuit, filed last March against Entercom. Earlier this week, a State Supreme Court Judge denied “in all respects” Entercom’s Motion to Dismiss Spitzer’s case, allowing the lawsuit to proceed.

“At least four major radio companies - Clear Channel, CBS, Entercom and Citadel Broadcasting - have also received requests for information from the Federal Communications Commission, which is conducting its own inquiry.”

“Requests for information,” eh?

Right.

Also See:
reaching “setttlements” - UMG goes down in bribery case, May 12, 2006
RWOnline - Ppitzer, CBS Settle Payola Allegations, October 20, 2006
Techdirt - Thank You Spitzer, May I Have Another?, October 20, 2006
Media Buyer Planner - CBS Settles With Spitzer, October 20, 2006

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This entry was posted on Monday, October 23rd, 2006 at 7:37 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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