Music News

Posted: Tue., Feb. 7, 2006, 5:16pm PT

Spitzer makes radio waves

Nine congloms have received subpoenas

Having already worked out payola settlements with two major music distribs, New York Attorney General Eliot Spitzer is saying he has evidence that some radio conglomerates have accepted illegal payments from record companies and middlemen for guaranteed airplay.

Spitzer and music industry officials told ABC's "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.

Nine radio conglomerates have received subpoenas from the attorney general: Clear Channel, Infinity (now CBS Radio), Entercom, Emmis, Citadel, Cumulus, Cox, Pamal and ABC.

Five companies told ABC they are cooperating with the investigation.

A number of other independent radio stations are also under investigation, according to state investigators.

The Federal Communications Commission said it is closely following the New York investigation, although Spitzer told ABC the FCC has yet to move forcefully.

Following Spitzer's probe, Warner Music Group contributed $5 million to charity as part of an agreement and Sony Music settled for $10 million. Both agreed to end any questionable business practices.

(Wire services contributed to this report.)

Contact the Variety newsroom at news@variety.com

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