• by Wayne Friedman , August 9, 2005

Prompted by a deal made by New York Attorney General Eliot Spitzer and Sony/BMG Music Entertainment, Federal Communications Commission Chairman Kevin Martin has launched his own investigation into radio stations taking bribes from music labels to play specific songs.

Spitzer negotiated a $10 million settlement over improper payments that Sony/BMG made to radio stations in an effort to influence radio programmers and disc jockeys into playing songs by Sony/BMG artists. There are federal laws against such payments---also known as "payola"--established in the early 60s after it was discovered that music labels were offering payments to radio outlets.

Spitzer's investigation led to the discovery that the process was much more sophisticated, with Sony delivering gifts such as laptop computers to radio stations. Because of the precise nature of the payola laws, Spitzer said his office would have a tough time prosecuting a case against Sony--and was forced to strike a deal with Sony instead.

The FCC also has rules against payola, and Martin said they "serve the important purpose of ensuring the listening public knows when someone is seeking to influence them."

Some of Sony/BMG's artists include Aretha Franklin, Tony Bennett, Beyonce Knowles, and the Dixie Chicks.

Music marketing analysts say the likelihood is that Sony isn't the only music label using this practice to influence radio stations.