SOURCE: http://www.latimes.com/business/la-...ack=1&cset=true

Spitzer Names 9 Radio Firms
Clear Channel and Infinity are among those subpoenaed in a `payola' investigation.


From Associated Press


ALBANY, N.Y. — New York Atty. Gen. Eliot Spitzer said Wednesday that he had subpoenaed nine of the nation's largest radio conglomerates in his investigation of claims that some major recording artists got air time because of payoffs by their labels.

"A lot of the major songs have been implicated in this, and it showed how pervasive the payola infrastructure had become," Spitzer said. "Major artists, major songs were sent up the charts through improper payments to buy spins on the air that translated into sales."

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Payola is a term used to describe such payments.

The companies that have received subpoenas control thousands of stations nationwide, including Clear Channel Communications Inc., Infinity, which now operates as CBS Radio, Citadel Broadcasting Corp., Cox Radio Inc., Cumulus Broadcasting Inc., Pamal Broadcasting Ltd., Entercom Communications Corp., Emmis Communications Corp. and ABC Inc., according to court filings by Spitzer.

Two major recording companies agreed last year to settle their parts of the investigation. Warner Music Group Corp. agreed to pay $5 million, and Sony BMG Music Entertainment agreed to pay $10 million.

Artists and writers are not targets, Spitzer's office said. In fact, some have supported the probe and provided complaints that assisted investigators.

Station owner representatives who were reached for comment denied that payola had taken place at their companies.

"Cox Radio has cooperated fully with Atty. Gen. Spitzer's investigation," Robert F. Neil, chief executive of Cox Radio, said in a statement. "Years before this investigation began, Cox Radio was the first radio group to terminate all relationships with independent record promoters to avoid any suggestion or appearance of 'pay for play.' "

"We have zero tolerance for pay-for-play," said Andrew W. Levin, executive vice president and chief legal officer of Clear Channel. "Any employee who violates that policy faces disciplinary action up to and including dismissal."

Jason Finkelberg, a general manager at Pamal Broadcasting, based in Albany, N.Y., said he knew of no payola being practiced. Music company representatives take radio personnel to lunch, he said, but no cash or gifts are exchanged at his company or at others he's worked for.

"We never accepted anything in exchange for airplay," he said.

A 1960 federal law and related state laws bar record companies from offering undisclosed financial incentives in exchange for airplay. The practice was called payola, a combination of "pay" and "Victrola," the old windup record player.

Spitzer has relied on civil laws in the payola case because the criminal laws are more specific and less likely to be violated.

The radio probe involves Jennifer Lopez's song "I'm Real" and John Mayer's "Daughters." Songs by other artists also are being examined, including ones by Jessica Simpson, Celine Dion, Maroon 5, Good Charlotte, Franz Ferdinand, Switchfoot, Michelle Branch and R.E.M.

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