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U.S. broadcaster Entercom to pay $4.25 million to settle lawsuit

U.S. broadcaster Entercom to pay $4.25 million to settle lawsuit

Entercom Communications Corp., one the largest U.S. broadcasters, will pay $4.25 million (euro3.23 million) to end Attorney General Eliot Spitzer's investigation of gifts _ or "payola" _ given by record companies in exchange for air play, Spitzer said Wednesday.
A lawsuit filed by Spitzer's office in March claimed Entercom solicited payments from record labels and traded air time for promotional items, personal trips and other gifts.
Spitzer, the New York state governor-elect, also charged that Entercom took payments from record labels to play their songs on the overnight programs "CD Preview" and "CD Challenge" in order to manipulate the music charts.
The attorney general's investigation focused on Entercom's activities from 1999 to 2006, spokesman Brad Maione said.
Payola is the term coined in the 1950s when early rock music was hit with scandal. It is a combination of the words "pay" and "Victrola," the old wind-up record player.
Entercom, based in Pennsylvania, will make a $3.5 million (euro2.6 million) payment to fund music education and appreciation programs and pay $750,000 (euro569,952) in costs to the state, Spitzer's office said.
Under the settlement approved in state Supreme Court in Manhattan, the company will not take payments or other gifts from record labels in exchange for airplay and will ban all payments to independent promoters who pass along funds from record companies, hire a compliance officer to monitor promotion practices and put in place an internal system to detect any abuses.
Entercom owns and operates 105 radio stations in the United States.
Spitzer's payola investigation has so far led to settlements with the four major record companies _ SonyBMG Music Entertainment, Warner Music Group Corp., UMG Recording Inc. and EMI Music North America _ and CBS Radio Inc.
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On the Net:
http://www.oag.state.ny.us/
http://www.entercom.com/


Updated : 2021-03-03 14:00 GMT+08:00