Record Labels Said to Be Next on Spitzer List for Scrutiny

[NashVegas]

WOO-HOO!

http://nytimes.com/2004/10/22/business/22music.html?hp&ex=1098417600&en=8698924ec6b8cf14&ei=5094&partner=homepage

Eliot Spitzer, the New York State attorney general, has recently taken on a procession of corporate powers from mutual funds to insurance brokers. Now he is casting his eyes on the music industry, particularly its practices for influencing what songs are heard on the public airwaves.

According to several people involved, investigators in Mr. Spitzer's office have served subpoenas on the four major record corporations - the Universal Music Group, Sony BMG Music Entertainment, the EMI Group and the Warner Music Group - seeking copies of contracts, billing records and other information detailing their ties to independent middlemen who pitch new songs to radio programmers in New York State.

The inquiry encompasses all the major radio formats and is not aiming at any individual record promoter, these people said.

...

Broadcasters are prohibited from taking cash or anything of value in exchange for playing a specific song, unless they disclose the transaction to listeners. But in a practice that is common in the industry, independent promoters pay radio stations annual fees - often exceeding $100,000 - not, they say, to play specific songs, but to obtain advance copies of the stations' playlists.

Oh yes. Get 'em. Please.

[Tandalayo_Scheisskopf]

1. Once he tears the top off of that fetid anthill...

He's gonna find so much to charge people with that everything else may just go by the wayside. You can take that to the bank. Barritry, creative accounting, fraud, loan sharking, you name it.

Rotten to the core and beyond.

[Karenina]

10. PAYOLA!!!

YEEE-HAW!!! GOOOOO ELIOT!!! :bounce:

[warrens]

2. GO GET 'EM

Freakin mafiosa scumsuckers. Elliot is da man.

[shraby]

3. He's good! Hope Kerry names him

as AG

[goforit]

4. This guy is the diamond in the rough!!!....A real man!!!!

:bounce:

Hopefully after this one he'll clean up Washington next.

[johnfunk]

5. I've been in the biz -- Spitzer is on the right track...

... but he'd also be well-served to examine the anti-competitive practices of each of the megalabels' distribution divisions. That's where a lot of the actual A&R clout is, and that's where the real crime against consumers -- price fixing -- takes place.

spitzer shouls also take a real careful look at the Harry Fox monopoly on the mechanicals biz.

ON EDIT: It may be 12 years old, but Frederic Dannen's excellent book on the seamier side of the music biz, Hit Men, is a must-read -- especially Chapter 10, "Joey and Freddy," which deals in some detail with The Network, a loose cabal of record promoters. Spitzer's going after the next generation of Joe Isgros -- a far less courtly crowd of thugs.

[progressivebydesign]

7. Yep! It's the corporate megolopolies that are involved...

..as in, 'you buy advertising on my radio station for your films, and I'll push/program your music division artists. Payola is alive and well.. it's just the corporate whore version.

[NashVegas]

11. Over 12 Years Old

It was given to me as a gift around 85 or so. Read it, but later lost it in a move.

The thing that most stood out was the story of the bean counter (ie, not a music expert) who took over CBS records and wanted to know why REO Speedwagon were given greater promotional priority for High Infidelity than the Clash were for London Calling, when the latter was a much better album in his bean counter opinion, and found out members of REO had given Rolexes to everyone in the promotion department.

[mac56]

6. wait a minute - Sony BMG -

When did that happen?

I heard Warner Music Group was trying to buy BMG.

add on edit -

or was that EMI? I'm so confused.

[The_Casual_Observer]

8. You mean that John Mayer and Beyonce

didn't make it on their own merit? Next they are going to start in on Santa Claus again!!!

[Dover]

9. Wow.....a one man army. Remarkable! He deserves a purple heart.

Quick.......CLONE HIM!

[Eloriel]

12. Spitzer for AG!!!

He's dynamite, absolutely dynamite.

[NashVegas]

13. Yes, He's Wonderful

And I can't help but wonder if he'd be as effective as US AG as he is back in NY. There's more you can do, but there's also that many more enemies who'd try to stop you.

[Anakin Skywalker]

14. Greedy Corporate Bastards!

They must be brought down, one by one, or all together!

[STL_Social_Democrat]

15. Spitzer is the Ralph Nader of 30 years ago

Mr.Spitzer is now doing the types of things Ralph Nader formerly did when he was helping this country. Although many have suggested that Spitzer be appointed Kerry's AG I would argue that the federal Attorney General position is a career killer. Lets not kid ourselves, Spitzer has enormous political ambition and he does plan on running for governor, senate or president someday.

[Desperadoe]

16. Attorney General

It wasn't a career killer for Bobby Kennedy. It took the BFEE to do that.

Spitzer is just the ticket we need to prosecute the corruption that pervades this entire country. AG would be the perfect spot for this guy to really surge to the top of the political spectrum, especially if he can get convictions on the top dogs and expose the pigs for what they are.

The restoration of justice and the defense of the Constitution has never been needed more in this country and Spitzer is just the ticket that we need for this to be done.

[Commie Pinko Dirtbag]

17. Now tell me again why should I feel righteously indignant

about people that download/upload MP3's and/or copy CDs borrowed from their friends?

:nopity:

[eeyore]

18. The artists are screwed by these practices as well.

All of the money that major labels require bands spend on promotion is recoupable by the label from the artists' sales. Out of the cost of a CD the artist will get well under a dollar. The rest goes to the record companies, distributors, record store, and of course paying back the massive amount of promotion required by the label.

All I can say is don't mistakenly punish the artists for the shitty practices of the industry that they are forced to work within. And yes, at this point of media conglomeration, you are forced to work within the system if you want your music to be heard nationwide.

If you like an artist's music, but decide that you'd rather get it for free, that is one less sale that shows up for them. No big deal, right? It's just one sale. Well, suppose 100,000 people have made the same decision you have. The label could well say that sales were below expectations and drop the artist you liked from the roster. Once you are dropped from a label, you can pretty much kiss your career goodbye - you become untouchable.

Just something to think about - when you download you really are hurting the artist you like. Our society seems to have taken hold of the idea that music should be free to the consumer. I know people who swear that they will never buy music again.

The art you love may well disappear one day if we're not careful.