So, your good friend Eliot Spitzer, that New York Attorney General fella, has now achieved settlements with all four major record companies over those allegations that they used payola tactics to buy airtime for their artists on US radio. EMI was the final of the majors to settle, reaching an agreement with the Attorney General yesterday.
This means all four major record companies have essentially admitted their employees or agents used tactics to get their artists played on US radio stations which broke anti-payola rules. Each major has pledged to end such practices, and to pay a fine for past violations. EMI got away with paying the smallest fine - they will pay just $3.75million, compared to Warner Music's $5million, SonyBMG's $10million and Universal's $12million.
Confirming that they had reached a settlement with Spitzer, EMI yesterday said: "EMI is pleased to have resolved these radio promotion matters with the New York State Attorney General with this agreement. In addition to voluntarily adopting strict policies last year, we have been working cooperatively with the Attorney General to reinforce these policies."
Spitzer told reporters: "When a record label engages in an elaborate scheme to purchase air time for its artists, it violates state and federal law and presents consumers with a skewed picture of the country's proclaimed 'best' and 'most popular' music. We're pleased that our investigation of payola in the music industry has resulted in significant business practice reforms that will help generate more diverse airplay."