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- AT&T Sends Controversial ‘American Idol’ Text Message
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FCC Opens Federal Payola Investigation
The Federal Communications Commission’s chairman has directed the commission’s Enforcement Bureau to review Sony BMG Music Entertainment’s “Payola” settlement with the New York State Attorney and determine if violations of federal rules occurred, Mediaweek reports.
The Enforcement Bureau is to investigate any incidents in which the settlement agreement discloses evidence of payola rule violations. According to the FCC, any evidence beyond the Sony BMG settlement presented to the commission will be swiftly acted on.
EMI Group, Warner Music Group, Clear Channel Radio and Cox Radio have disclosed receiving subpoenas in the industry-wide investigation. Universal Music Group, Infinity Broadcasting and Entercom have reportedly been served as well. Future settlements with Warner, Universal and EMI may be modeled after the Sony BMG settlement.