Payola suits...
Posted: Wed Feb 08, 2006 1:01 pm
Interesting story... here's most of it...http://abcnews.go.com/Primetime/story?i ... eeds0312By BRIAN ROSS, RICHARD ESPOSITO and VIC WALTERFeb. 7, 2006 -- It's party time at the Grammy's but there is a cloud of scandal hanging over the stars in the form of the most compressive investigation into corporate payola in the history of the music industry.Paying to play records on radio — payola - seems as old as the recording industry itself — but this time its not low level promoters under investigation — its the record companies and the conglomerates that own thousands of the nation's radio stations. ABC News interviewed those stars last night, as a follow up to Chief Investigative Correspondent Brian Ross' ABCNEWS.com exclusive.Outside legendary music producer Clive Davis' annual pre-Grammy party last night, a number of major figures in the music business said they aren't surprised it's still happening."I heard about that. That's been going on a really really long time. I think back in the 70s they used to pay people with hookers and cocaine, and now they're just doing it with straight up money. So they can all go out and buy their own hookers and cocaine," said Taylor Hawkins, the drummer for the band Foo Fighters."Honestly, payola has existed since the beginning of the music business so it's not like its some brand new thing that never happened before," said singer Alicia Keys.Music industry figures were reacting to the news that a two-year-long payola investigation by the New York attorney general has now turned to the nation's nine largest radio conglomerates.Attorney General Eliot Spitzer says evidence he has gathered clearly shows some of the radio conglomerates have participated in the illegal practice of accepting payments from record companies and middlemen for guaranteed air play for certain songs."The behavior has been unethical, improper, illegal and a sanction of some severity clearly should be imposed," Spitzer told ABC News chief investigative correspondent Brian Ross.Spitzer and music industry officials told "Primetime" that millions of dollars in payments, gifts and trips are exchanged each year to get music stations to add songs to their weekly play lists.Spitzer says record company documents obtained in the investigation of Sony Music and Warner, both which have settled with the attorney general, reveal payments for songs that became major hits, including Jennifer Lopez's "I'm Real" and John Mayer's "Daughters."Other artists whose songs are named in the documents Spitzer has obtained include Jessica Simpson, Celine Dion, Maroon 5, Good Charlotte, Franz Ferdinand, Switchfoot, Michelle Branch and R.E.M. Spitzer says much of the money went directly to corporate bottom lines, unlike payola scandals of previous decades when individual disc jockeys and program directors received the money."We have people in suits coming in with documents rather than cash payments under the table to a DJ," Spitzer said.The nine radio conglomerates that have received subpoenas from the attorney general are Clear Channel, Infinity (now CBS Radio), Entercom, Emmis, Citadel, Cumulus, Cox, Pamal and ABC.The nine companies together control several thousand radio stations across the country. In statements to ABC News, five of the companies say they are cooperating with the attorney general's investigation and take the matter seriously. The other companies have not responded to requests for comment.