Warner Settles 'Payola' with $5 Million

Published: 2005-11-23
Warner Music Corp. is paying $5 million (US) to settle a suit brought by New York state about how much influence the company had on the music played on the radio, according to New York State Attorney General Eliot Spitzer.

The suit was in reference to 'payola,' a name given to bribes big record companies gave radio DJs and radio stations to get them to play songs by artists on the companies' labels. The bribes consisted of anything from concert tickets and iPods to cold hard cash.

This summer Sony BMG paid out $10 million to settle a related suit. Warner has agreed to stop the bribing and change its ways. Its $5 million fine will go to music education and appreciation programs in New York.

Writer: Michelle Garcia



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