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Saturday, March 11, 2006

 

RADIO GIANT ENTERCOM NAMED IN PAYOLA LAWSUIT

Entercom Alleged to have Traded Air Time for Payoffs by NY state attorney general.
An Entercom executive responded:
"These are not optional. They come from corporate and generate millions of dollars for Entercom."
Payola is the practice by which record labels and some independent promoters offer money and other gifts in exchange for broadcast air time for particular songs or artists. The purpose of the payments is to increase air time for chosen songs and artists and manipulate the popular music industry charts.
Link to full story:
http://www.oag.state.ny.us/press/2006/mar/mar08a_06.html
Eliot Spitzer only has jurisdiction over New York State, so yes the lawsuit only relates to New York State. However, I direct your attention to page 7 of the 28 page lawsuit. "22. Federal Law also prohibits the undisclosed sale of airplay." And then: "According to the Federal Communications Commission, "payola" statutes are intended "clearly to prevent deception on the part of the public growing out of concealment of the fact that the broadcast of particular program material was induced by consideration received by the licensee."It's impossible for me to read the evidentiary emails without agreeing with Spitzer's conclusion that CD Preview and CD Challenge were thinly veiled, if veiled at all, attempts to circumvent the law. They were clearl attempting to manipulate charts and public opinion. Legal? Perhaps. Perhaps not. Ethical? Absolutely not.
There is ample documentation backing up Universal's claim that Entercom executives knew exactly what was going on the whole time and their feigned shock at what was going on is outrageous. Do read the lawsuit and evidence. It's fascinating.
Quoted from this webpost:
http://www.radio-info.com/mods/board?Post=675601&Board=usa

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