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Monday, August 8, 2005

Radio payola payoff has FCC tuning in

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The Federal Communications Commission is under pressure to investigate "pay for play" practices in the radio industry after music giant Sony BMG agreed last month to pay $10 million to settle a payola probe in New York.

Jonathan S. Adelstein, one of two Democrats on the five-person panel that oversees the FCC, has called on the agency to conduct its own investigation into the Sony BMG case. So far, the panel's chairman -- Kevin J. Martin, a Republican -- has not announced an inquiry.

The FCC has two positions for Republican seats, and some industry analysts think Mr. Martin is waiting until President Bush fills those positions before signing off on a payola probe.

"We have to do something. This is squarely in the FCC's jurisdiction," said Rudy N. Brioche, Mr. Adelstein's legal adviser.

Mr. Martin's spokeswoman did not return telephone calls Friday.

Sony BMG, one of the world's largest music companies, agreed July 25 to pay $10 million and to stop paying radio station employees to feature its artists to settle an investigation by New York Attorney General Eliot Spitzer, a Democrat.

The company said some of its efforts to promote its artists on the radio were "wrong and improper" and apologized for its conduct.

Mr. Spitzer -- who is seeking his party's gubernatorial nomination -- has released e-mail messages and other documents that outlined Sony's practices.

In one instance, the record company's executives gave the program director at a San Diego radio station a 32-inch plasma screen television set in exchange for adding Jennifer Lopez's latest album to the broadcaster's playlist.

The programmer was urged to make up a contest winner's name and Social Security number to cover up her role in the scheme.

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