The US press this weekend reported that major label SonyBMG is about to announce it has reached an agreement with New York Attorney General Eliot Spitzer relating to his previously reported investigation into allegations record companies have been participating in some dodgy radio promotion activities, essentially buying airtime for their artists, something US media law bans.
The New York Times' Jeff Leeds reported on Saturday: "The settlement is expected to establish a blueprint for agreements that Mr Spitzer will probably seek with the other three major record companies, which have all received subpoenas [as part of these investigations]. As part of the settlement, Sony BMG is expected to admit to misconduct in its radio promotion practices and agree to changes that would limit attempts to influence airplay, according to people involved in the discussion. For instance, the company is expected to end its use of independent promoters." The major is also likely to pay fines as part of the arrangement - rumoured in the LA Times to "exceed $10 million".
Although all the major labels remain officially silent on Spitzer's ongoing investigations, except to say they are complying with his demands, insiders say once SonyBMG strike a deal the other majors are likely to follow suit. So expect a few interesting developments in this regard in the next few weeks.