Emi Pays Millions To Settle Radio Bribe Allegations
Record giant EMI has agreed to pay $3.75 million (GBP2.1 million) after being accused of bribing radio stations to give airtime to its artists. New York Attorney General ELIOT SPITZER claims EMI used THE ROLLING STONES concert tickets to encourage a radio executive to increase its presence on playlists. EMI has not admitted any wrong-doing in making the payment, but the company agreed to change its practices. Under US law, record companies are not allowed to pay for airtime. The settlement money will be donated to music education groups in New York. Spitzer alleged EMI offered illegal "financial benefits to obtain airplay and boost the chart position of its artists by bribing radio station employees with concert tickets, video games and hotel and air fare expenses". He claimed GORILLAZ, COLDPLAY and NORAH JONES benefited from boosted radio play following incentives given to radio stations by EMI. Spitzer launched a nationwide investigation into alleged wrongdoing by music and radio companies in 2004. Universal agreed to pay out $12 million (GBP6.3 million) last month (MAY06) and Sony BMG and Warner Music paid out $10 million (GBP5.39 million) and $5 million (GBP2.69 million) respectively.