Warner Music Group today agreed to pay $5 million and reform its business practices to settle charges its employees paid off radio stations to secure airplay for Warner recording acts.
The settlement is the second announced by New York State Atty. Gen. Eliot Spitzer as part of a payola investigation that has revealed widespread instances of music and radio employees ignoring laws that have long banned "pay for play" practices. In July, Sony BMG agreed to a $10 million settlement with Spitzer.
"Warner is the second major player in the music industry to come forward and acknowledge that these practices are wrong," Spitzer said in a statement. "Unfortunately, other companies continue to engage in them. I applaud Warner's decision to halt this conduct, cooperate fully with my office, and adopt new business practices."
Details here from the Los Angeles Times.