Sony to pay 10 million and halt "pay-to-play" service
updated 01:50 pm EDT, Mon July 25, 2005
Sony stops pay-to-play
Today New York Attorney General Eliot Spitzer announced that Sony has agreed to pay $10 million and halt its "pay-to-play" service in order to resolve a state investigation of payola in the music industry. Spitzer stated, "our investigation shows that, contrary to listener expectations that songs are selected for airplay based on artistic merit and popularity, air time is often determined by undisclosed payoffs to radio stations and their employees." according to the . Sony acknowledged it engaged in "improper conduct" according to a statement issued today by Spitzer's office. Radio station advertising is expected to drop less than one percent this year due to satellite-radio and iPods hurting prices for traditional advertisements, according to TNS Media Intelligence.
