Warners Reveals Additional Supoena in NY Promotion Probe

According to Rueters, The Warner Music Group "has received another subpoena from New York Attorney General Eliot Spitzer as part of an industrywide probe of the financial relationship between music companies and radio stations…"

"The company, which is planning a $750 million initial public offering, said in a regulatory filing that it received a subpoena on March 31 as part of the probe, which includes a look at the use of independent promoters and accounting for payments to them."

"The investigation is examining the time-honored practice of music companies’ paying independent promoters hundreds of millions of dollars a year to help secure valuable radio air time for songs."

"Warner Music previously disclosed that it had received subpoenas from Spitzer on Sept. 7 and Nov. 22 regarding the same matter."

"…It said it cannot predict the outcome of the investigation but that the probe has the potential to result in financial penalties or change the way the music industry promotes records.

The EMI Group "said in October that Spitzer was investigating it as part of an industrywide probe."

"Sources have said Universal Music Group and Sony BMG Music Entertainment have also received subpoenas…"