Warner Pays For Payola

[Mr. Humonculous]

After being charged with payola, Warner Music Group has vowed to stop the practice and pay $5 million to settle the state investigation.

Under the settlement, Warner, whose labels include Atlantic, Reprise and Asylum and whose artists include Missy Elliot, Fat Joe, T.I., Paul Wall, Mike Jones, alternative group Green Day, rock/rap group Linkin Park and Madonna among many others, must stop influencing radio programming by offering gifts to hike some of its artists' airplay. According to the state legal brief, Warner offered free trips, iPods, airline tickets to exotic destinations, computer equipment, trips to the Super Bowl, the World Series and MTV Awards to radio personnel in exchange for boosted airplay. State Attorney General Eliot Spitzer bashed the Federal Communications Commission (FCC) for taking payola lightly.

"We're hoping that the labels understand that payola is illegal, it's wrong and it's got to end," Spitzer told New York's Daily News. Spitzer hopes that the probe will help level the playing field for acts that have struggled to get airplay while others enjoyed company payoffs.

According to Spitzer's legal papers, the "pay-for-play techniques" had been "condoned" by senior Warner executives. The bonuses or "spiffs" were given to the stations through promoters. The sum that Warner has agreed to pay will be distributed by the Rockerfeller Philanthropy Advisors to New YorkState to finance music programs.

This marks the second agreement Spitzer has reached with a major record company. Earlier this summer, the attorney general unveiled the details of Sony BMG's $10 million settlement payoff.

According to Spitzer, the record company paid radio programmers off with gifts in exchange for airplay for its artists. In one instance, a Sony BMG executive contemplated a plot to promote Killer Mike's "A.D.I.D.A.S" by sending deejays one Adidas sneaker. Deejays would receive the other sneaker after playing the single ten times.

Despite being criticized by Spitzer, FCC Commissioner Jonathan Adelstein commanded the attorney general for reaching a "breakthrough" against payola and is now demanding that the FCC stop the "pervasive" practice. While their songs were played, Spitzer assured that "the artists are not on the wrong end of this."

Spitzer said his office is pursuing more legal action against "radio station conglomerates" that take payola.

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