Entercom Settles Spitzer Payola Investigation – Takes $4.25 Million Hit

The Office of the New York Attorney General has settled its Payola investigation with radio conglomerate Entercom Communications Corp. to the tune of $4.25 million dollars. The outcome was formally announced on December 27th, and follows similar arrangements with Sony BMG, Warner Music Group, Universal Music Group, EMI, and CBS Radio. Entercom controls 105 stations, and is the fifth-largest radio conglomerate in the United States.

As part of its settlement, Entercom has agreed to pay a $4.25 million fine, a figure that includes a $3.5 million payout to various music appreciation and education programs. In addition, Entercom will terminate all pay-for-play arrangements, prohibit payments from independent promoters, implement controls to prevent continued payola payouts, and hire an auditor to monitor the compliance process.

Author: FutureMusic

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