Sony BMG Settles Spitzer Probe
The conglomerate also agreed to hire a compliance officer to monitor promotion practices as part of the deal.
Spitzer had also requested documents and information from EMI,
“Our investigation shows that, contrary to listener expectations that songs are selected for airplay based on artistic merit and popularity, air time is often determined by undisclosed payoffs to radio stations and their employees,” Spitzer said.
“This agreement is a model for breaking the pervasive influence of bribes in the industry.”
Sony BMG paid for vacation packages and electronics for radio programmers, footed the bill for contest giveaways for listeners, paid some operations expenses of radio stations and hired “independent promoters” to provide illegal payments to radio stations to get more airplay for its artists, Spitzer’s probe showed.
E-mails among company executives reportedly showed top officials were aware of the payments.
In one instance, an employee of Sony’s Epic label asked: “What do I have to do to get
In another case, a promoter unhappy that
Spitzer said Sony BMG employees sought to conceal some payments by using fictitious contest winners to document the transactions.
Sony BMG Music is the parent company to several major labels including
The $10 million will be distributed to not-for-profit entities and earmarked for music education programs, Spitzer said.