D&C: WKGS/WPXY Implicated in Bribery + Spitzer Speaks Out

[dampier]

I am not sure if this story in today's paper is actually a rehash of the AG's Warner Bros. press release from last week, or if this is something new and different. Knowing the D&C's inability to report on anything radio/TV with expertise, it's probably a bit of a misleader. However, the latest Spitzer stuff told to WCBS is revealing....

The State Attorney General Elliot Spitzer has implicated WKGS and WPXY in bribery this week in the widening "payola" scheme according to the Democrat & Chronicle.

Spitzer told WCBS-AM that the state attorney general's office will be vigorously expanding its payola investigation in 2006 and says several additional major labels and radio stations are under investigation.

Spitzer said his office was pursuing the payola matter because the FCC's enforcement powers and penalties were "woefully inadequate."

Spitzer added that his office is considering asking the FCC to revoke NY state radio station licenses over the affair, explaining that the relatively small fines imposed by the regulatory body would be considered "a cost of doing business" by station owners. Far more effective, explained Spitzer, would be for several stations to have their licenses revoked, causing the loss of tens of millions of dollars for station group owners.

"You'd see instant change overnight," Spitzer said.

 

[Element9]

Making Implications

>
> The State Attorney General Elliot Spitzer has implicated
> WKGS and WPXY in bribery this week in the widening "payola"
> scheme according to the Democrat & Chronicle.
>
> Spitzer told WCBS-AM that the state attorney general's
> office will be vigorously expanding its payola investigation
> in 2006 and says several additional major labels and radio
> stations are under investigation.
>
> Spitzer said his office was pursuing the payola matter
> because the FCC's enforcement powers and penalties were
> "woefully inadequate."
>
> Spitzer added that his office is considering asking the FCC
> to revoke NY state radio station licenses over the affair,
> explaining that the relatively small fines imposed by the
> regulatory body would be considered "a cost of doing
> business" by station owners. Far more effective, explained
> Spitzer, would be for several stations to have their
> licenses revoked, causing the loss of tens of millions of
> dollars for station group owners.
>
> "You'd see instant change overnight," Spitzer said.
>

"Implicating" does not necessarily mean the same thing as "charged with," although it's another rung on the ladder of the law that any self-respecting, profit-making General Manager wants to find himself standing on.

It wouldn't surprise me if Spitzer turns up the heat on present and past General Managers of stations connected in any way with (key word here) wrongly accepting promotional items/cash in connection with airplay.

Spitzer has the perfect tools to implicate and charge those GM's: former PD's and OM's who will likely sing like the pigeons they are, once the AG and his staff begin interrogating and making deals.

I'm one person who wouldn't be surprised at the extent of
the squalor that a continuing investigation and subsequent testimony might reveal.

-9-

 

[fybush]

> I am not sure if this story in today's paper is actually a
> rehash of the AG's Warner Bros. press release from last
> week, or if this is something new and different. Knowing
> the D&C's inability to report on anything radio/TV with
> expertise, it's probably a bit of a misleader. However, the
> latest Spitzer stuff told to WCBS is revealing....

It's actually an editorial...

<a target="_blank" href=http://democratandchronicle.com/apps/pbcs.dll/article?AID=/20051128/OPINION04/511280312>http://democratandchronicle.com/apps/pbcs.dll/article?AID=/20051128/OPINION04/511280312</a>

Still no correction to the "WNVE (95.1)" gaffe in the last article. Perhaps someone else would like to call and complain as well? 585-258-2251. Have at it!<P ID="signature">______________
Tower Site Calendar 2006 JUST RELEASED! - <a target="_blank" href=http://www.fybush.com/nerw.html#calendar>www.fybush.com</a></P>

 

[SirRoxalot]

Enter-combustion

Considering that Dave Universal is Spitzer's Payola Poster Boy, the Field family should be nervous. Just imagine the firestorm at Corporate Parkway if WKSE's license was revoked!

 

[Radknowski]

Spitzer Report: Revelations (not the Bible)

>
> Spitzer added that his office is considering asking the FCC
> to revoke NY state radio station licenses over the affair,
> explaining that the relatively small fines imposed by the
> regulatory body would be considered "a cost of doing
> business" by station owners. Far more effective, explained
> Spitzer, would be for several stations to have their
> licenses revoked, causing the loss of tens of millions of
> dollars for station group owners.
>
> "You'd see instant change overnight," Spitzer said.
>
<font face="times new roman" size="3" color="330066">
Well, perhaps not overnight, Mr. Attorney General. Old habits die hard and the radio braintrust can be depended on to find and exploit loopholes.

The report, which can be found at the NYS Attorney General's website, reveals some interesting points.

Paragraph 57 is particulary revealing. It unveils the names of Independent promoters such as Jeff McClusky, Michele Clark and Jerry Brenner. These may not be household or water-cooler names, but they are known to be the heaviest of heavies in the Independent promoter game.

What's particularly revealing is the influence these people exerted, particularly at the groups named in the report: Entercom, Citadel, Infinity and Clear Channel. Equally revealing, especially to the uninitiated,
are the "spin programs" and vehicles designed and set up to bring in the cash from Independent promoters.

The report states, in Paragraph 57, "Entercom's spin programs, CD Preview and CD Challenge, could be purchased by Warner Music directly from Entercom. Entercom's programs ranged from $3000 - $4,500 per week. Warner Music's promotion department recognized that Entercom's program--which concentrated its spins in the little-listened to overnight time frame--yielded the most misleading spin numbers... when the listening audience is the smallest."

While such "spin programs" may not expilicitly violate the law, they are clearly set up to generate cash flow from the record companies, by way of the Independent promoters, who, it must be noted, are used by the record companies to buffer the companies, such as Warner Brothers and Sony, from incrimination.

If such "spin programs" do not clearly state that the song is being played on the radio station and the time was purchased/paid for by the record company, there exists the potential for violation of the law.

This is what is commonly refered to as clarity. Spitzer's report makes clear that, among other issues, clarity has been lacking in the relationship between radio stations and their listeners.

Should licenses be revoked over this issue? That seems extreme, but no more extreme than a paltry $10 thousand fine. I would suggest that the AG continue to impose sizeable settlements with the radio companies in question, as it did with Warner Brothers and Clear Channel.

While it could be argued that the general managers and program directors of the companies which violated the law deserve to be terminated and punished pursuant to the law, revoking the licenses would be detrimental to account executives, on air, traffic and production personnel, innocent victims who had no part in the overall scheme which led to skirting and breaking the law.</font>