The radio company that had threatened to fight Eliot Spitzer over his allegations that they were guilty of payola - ie accepting payments from record labels to programme their music - has reached a settlement with the New York Attorney General. Spitzer targeted US media conglom Entercom after reaching a settlement with all four major record companies, who basically accepted that some of their past music promotion tactics breached anti-payola rules. Entercom, however, denied any wrong doing, claiming their business relationships with music companies were within US broadcasting regulations.
However, despite initially saying they would fight Spitzer's allegations, the radio firm last week announced it had reached a deal with Spitzer in the New York courts, although stressed that it was entering into the deal to avoid fighting a lengthy and costly lawsuit, and not because it accepted wrong doing. In a statement the company said: "In the interests of the company, our employees and our shareholders, we have chosen to resolve this matter immediately and without extensive and costly litigation. The court did not find any liability, nor are we admitting liability with this settlement. Rather, we are taking the opportunity to put the investigation behind us and move forward."
As part of the deal the radio firm will pay a $4.25 million fine, of which $3.5 million will go to music education programmes. Entercom also pledged to introduce internal measures to ensure any practices considered payola by the New York Attorney General's office could no longer take place.
Entercom is the second radio firm to settle with Spitzer over the issue of payola. CBS Radio settled back in October.