With the rampage against illegal downloads and music piracy by the music industry, you'd think that they were good corporate citizens. Wrong!
Eliot Spitzer, the New York Attorney General, confirmed on Thursday that Universal Music Group agreed to a $12 million settlement after being charged with giving vacations, gifts, and bribes to various radio stations to up the airtime of the artists they represented.
Universal only would admit that "various employees and independent promoters acting on behalf of the company" had acted inappropriately. They wouldn't admit to quilt in the matter. Of course they didn't know anything that was going on. Poor victims.
They offered this statement:
"We have been working cooperatively with the attorney general's office in resolving these promotion issues and are pleased to have completed the process with this agreement, the reforms that we have agreed to with the attorney general are consistent with the policies that we voluntarily implemented over a year ago."
They have agreed to halt all illegal payments and also the use of independent promoters who offer the illegal perks to the radio stations.
Spitzers take was:
"UMG has illegally provided radio stations with financial benefits to obtain airplay and boost the chart position of its songs, UMG has obtained airplay for its songs through such deceptive and illegal practices as bribing radio station employees, on occasion, to play UMG songs, providing a stream of financial benefits to radio stations, to assist with stations' overhead costs or to provide promotional support, on condition that UMG records receive airplay."
"Consumers have a right not to be misled about the way in which the music they hear on the radio is selected, pay-for-play makes a mockery of claims that only the 'best' or 'most popular' music is broadcast."
In the papers that Spitzer filed with the New York State Supreme Court with the settlement deal, he still asserted that Universal was culpable as a whole.
Another complaint filed by Spitzer concerning the company was that it hired employees that would run fake call-in campaigns which resulted in playing time for their artists.
His widespread subpoenas have uncovered a number of dirty dealings. After launching an investigation into alleged illegal activity among record labels and radio stations, Sony BMG agreed to halt further illegal radio promotions and settled for $10 million in July 2005. The agreement prohibits Sony employees from passing out gifts valued at more than $150 to radio stations.
Warner Music Group agreed to a $5 million settlement in November. Spitzer sued Entercom Communications Corp. earlier this year, accusing the media firm of trading cash for airplay, and Entercom has denied the charges and nixed the idea of a $20 million fine.
With the music industry speaking from its perch, told everyone and still is telling everyone how dirty those who download free music are. Here we have an industry-wide scandel that artificially and under-the-table, undermines the will of those who really do call in for their favorites to be played, and are denied because of payments and bribes to the gatekeepers: the radio stations.
People should be outraged and let their voices be heard! What do you have to say about it?
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