Home Forums General Discussions Open Topic Spitzer goes after "Big Music"

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  • #47375
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    rosa
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    thought my fellow music aficionados/rebels would appreciate this story; perhaps you’ve heard:

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    LONDON/NEW YORK (Reuters) – EMI Group PLC, the world’s third-largest music company, on Friday said it and other music companies faced a New York probe into how music companies influence what songs are played on the radio.

    "We are cooperating fully with this inquiry, which is at a preliminary stage," EMI said in a statement.

    New York Attorney General Eliot Spitzer, who has already taken on the investment banking, mutual funds and insurance sectors, has served subpoenas against Universal Music Group, Sony BMG Music Entertainment, EMI and Warner Music, sources familiar with the matter said, confirming a report in the New York Times.

    A New York Attorney General spokeswoman declined to comment. Warner Music and Sony BMG declined to comment. A spokesman for the Universal Music Group was not immediately reachable.

    EMI, the only publicly traded, stand-alone music company among the four majors, was down four pence at 216p at 10:55 a.m. EDT, having earlier hit a low of 208-1/2p.

    The investigation, which several sources said was still in the "preliminary" stages and may yet lead to no official charges, started in September.

    Spitzer has requested information on the companies’ relationships with independent promoters who serve as middlemen between music companies and radio stations, one source familiar with the matter said, confirming reports.

    The investigation revisits a decades-old practice of employing middlemen to sidestep U.S. laws restricting the bribing of broadcasters to air particular songs without disclosing this to listeners.

    EMI said in the statement it had a strict, long-standing policy against unlawful radio promotion practices.

    "EMI has no reason to believe that there will be a material financial impact on the company," it added.

    One music industry source said the investigation could be beneficial to the music industry, which shells out hundreds of millions a year to the promoters.

    "If the process is changed, where we no longer played that game, it would probably be a benefit to us," said one music industry source regarding the practice.

    Clear Channel Communications, the largest U.S. radio conglomerate with 1,200 stations, in April 2003 said it stopped dealing with independent promoters altogether.

    "This seems to be a very small niche part of the market," said Investec analyst Kingsley Wilson earlier on Friday.

    Spitzer has targeted the music industry before, securing $50 million in unpaid royalties to thousands of artists such as David Bowie and Dolly Parton in May. (Additional reporting by Mike Elliott in New York)

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    also see http://p2pnet.net/story/2794 for additional info.

    take care,
    rosa

    #105679
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    AGAP
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    Go Spitzer Go :aliensmile: :mrgreen: :aliensmile:

    They all need to review their business practices, cut the crap & promote original music…yeah, like thats gonna happen :wink:

    Cool story, thanks for the info :!:

    #105680
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    fata morgana
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    Hey Rosa, nice to see you here! :D

    …been thinkin’… about these fat cats who get fatter off the artists. I’m sure there’s enough stories out there about this royalties non-payment scandal to raise hair on head. Imagine these radio people who do not pay royalties to artists and keep collecting their dues from the publicity mongers–who also sell their wares and get fat off the artist’s back–and suddenly accumulate enough riches to become the Wall-Mart of radio-land. This done, the artists do not have the backing of either their (mostly major) record company–who will not take a chance and cover expenses across the board and instead, as Courtney Love has mentioned, let the artists pay (or incur a debt-load) for most, if not all, production and creative costs. So, the artists constantly get the fucked end of the stick and everyone else goes laughing all the way to the bank. Sucks

    #105681
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    Robert
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    would’ve been great if he could look into mtv as well. not that I have any proof that they’re involved in monkey business, but god they play a hell of a lot of crap.
    (yeah I know, if I don’t like it, I don’t have to watch it.)

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