NY Attorney General To Investigate Radio Promo Practices

According to the New York Times, “Eliot Spitzer, the New York State attorney general, has recently taken on a procession of corporate powers from Wall Street analysts to mutual funds to insurance brokers. Now he is casting his eyes on the music industry, particularly its practices for influencing what songs are heard on the public airwaves.”

“According to several people involved, investigators in Mr. Spitzer’s office have served subpoenas on the four major record corporations – the Universal Music Group, Sony BMG Music Entertainment, the EMI Group and the Warner Music Group – seeking copies of contracts, billing records and other information detailing their ties to independent middlemen who pitch new songs to radio programmers in New York State.”

“The inquiry encompasses all the major radio formats and is not aiming at any individual record promoter, these people said. Mr. Spitzer and representatives for the record companies declined to comment.”

The article also states that “since the big companies severed their ties to the practice, record labels – suffering from piracy and other financial woes – have sharply scaled back payments to the middlemen, and by some estimates pay them as little as $30 million annually.”

“One promoter, who spoke on condition of anonymity, said Mr. Spitzer’s investigators “are not going to find anything; they’re 20 years too late.”

“But questionable practices persist in a variety of markets and music formats,” according to the Times.

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