A New York based Attorney General is reportedly launching an investigation into the relationship between the music industry and the US radio sector. The investigation will look into allegations regarding the practices undertaken by certain players in American's radio promotions sector.
Attorney General Eliot Spitzer is best known for confronting the American financial services industry over their business practices. In his new investigation, Spitzer is expected to be looking for corruption in the ways record companies promote their music to radio station bosses. Radio stations are not allowed to accept money in return for playing records unless they specifically tell their listeners that that is what they are doing. However, some believe that the practice of some radio stations to sell advance playlist information to radio promotion companies, which are in turn sold on to record labels, may be covering up other less ethical transactions.
Neither Spitzer nor the record labels have commented on the reported investigation, although the New York Times reckons the Attorney General has already served subpoenas on all four major labels in a bid to see contracts, billing records and other information detailing the labels' ties with the independent middlemen who pitch new songs to radio programmers in New York State