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Sony BMG Music Entertainment will pay $10 million and stop paying radio station employees to feature its artists to settle an investigation by the New York Attorney General, Brand Week reports.
A Sony spokesman said “pay for play” practices were “wrong and improper,” and that Sony “looks forward to defining a new, higher standard in radio promotion.” The company will hire a compliance officer to monitor promotion practices.
Spitzer said Sony BMG paid for vacation packages and electronics for radio programmers, paid for contest giveaways for listeners, paid some operational expenses of radio stations and hired independent promoters to provide illegal payments to radio stations to get more airplay for its artists.
Spitzer has also requested documents and information from EMI, Warner Music Group, Vivendi Universal SA’s Universal Music Group, and a number of radio stations.
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