Another Epic employee who was trying to promote the group Audioslave to a Clear Channel programmer asked in an email:
WHAT DO I HAVE TO DO TO GET AUDIOSLAVE ON WKSS THIS WEEK?!!? Whatever you can dream up, I can make it happen.
A promotion employee unhappy with the times assigned for spins of the song "I Drove All Night" by Celine Dion wrote this internal email:
OK, HERE IT IS IN BLACK AND WHITE AND IT'S SERIOUS: IF A RADIO STATION GOT A FLYAWAY TO A CELINE [DION] SHOW IN LAS VEGAS FOR THE ADD, AND THEY'RE PLAYING THE SONG ALL IN OVERNIGHTS, THEY ARE NOT GETTING THE FLYAWAY. PLEASE FIX THE OVERNIGHT ROTATIONS IMMEDIATELY.
The investigation revealed that SONY BMG employees took steps to conceal many of the payments to individuals and radio stations, by using fictitious "contest winners" to document the transactions and make it appear as though the payments and gifts were going to radio listeners instead of station employees.
The Assurance of Discontinuance summarizing the Attorney General's findings alleges that the illegal payoffs for airplay were designed to manipulate record charts, generate consumer interest in records and increase sales.
Spitzer said: "Aggressive promotion of products is one of the hallmarks of our economy. We expect it and respect it when done creatively and legally. But the efforts outlined in the Assurance clearly crossed the line and must be curtailed."
Under the Assurance, SONY BMG, building on guidelines SONY BMG issued earlier this year in response to the AG's investigation, has agreed to stop making payoffs in return for airplay and will fully disclose all items of value provided to radio stations in the future.
SONY BMG also has agreed to corporate-wide reforms, including hiring a compliance officer responsible for monitoring promotion practices and developing and implementing an internal accounting system designed to detect future abuses. This is the first time an entertainment company has agreed to such sweeping reforms.
The company has also issued a statement acknowledging the improper conduct and pledging to abide by a higher standard.
In addition, the company has agreed to make a $10 million payment for distribution by the Rockefeller Philanthropy Advisors to New York State not-for-profit entities in a manner that will inure to the benefit of the residents of the State of New York by funding programs aimed at music education and appreciation.
Spitzer said SONY BMG officials cooperated fully with his investigators and promptly agreed to reforms when the problems were identified. He commended the company for taking steps that should serve as a model for the rest of the industry.
Spitzer also noted that his office continues its broad investigation of pay-for-play practices in the recorded music industry.
- From a News Release from the Office of the Attorney General, New York
