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Trouble for Entercom?

"RADIO GIANT NAMED IN PAYOLA LAWSUIT

Entercom Alleged to have Traded Air Time for Payoffs

Attorney General Eliot Spitzer today announced a lawsuit against one of the nation’s leading radio chains, alleging that company illegally traded "air time" for payments.

The suit against Entercom Communications Corp. is the latest in the Attorney General’s ongoing effort to combat the pervasive influence of "payola" in the entertainment industry. Last year, after an extensive investigation by his office, the Attorney General announced landmark agreements under which two major record labels agreed to halt the practice, adopt sweeping reforms and pay fines. Entercom is the first company to be sued as part of the probe."

What's interesting is that the suit goes after "CD Preview". No secret about how that works. Pat Paxton seems very proud of it. Or did.

Link HERE<P ID="signature">______________
SD</P>
 
> "RADIO GIANT NAMED IN PAYOLA LAWSUIT
>
> Entercom Alleged to have Traded Air Time for Payoffs
>
> Attorney General Eliot Spitzer today announced a lawsuit
> against one of the nation’s leading radio chains, alleging
> that company illegally traded "air time" for payments.
>
> The suit against Entercom Communications Corp. is the latest
> in the Attorney General’s ongoing effort to combat the
> pervasive influence of "payola" in the entertainment
> industry. Last year, after an extensive investigation by his
> office, the Attorney General announced landmark agreements
> under which two major record labels agreed to halt the
> practice, adopt sweeping reforms and pay fines. Entercom is
> the first company to be sued as part of the probe."
>
> What's interesting is that the suit goes after "CD Preview".
> No secret about how that works. Pat Paxton seems very proud
> of it. Or did.
>
> Link HERE
>
I was wondering what happened to CD Preview.

Isn't it legal to get paid for airplay IF you say that you are getting paid? The 2 local Entercom stations ran CD Preview as stopsets and they always said "we are brought to you by () records" The DJ always
<P ID="signature">______________

</P>
 
> Isn't it legal to get paid for airplay IF you say that you
> are getting paid? The 2 local Entercom stations ran CD
> Preview as stopsets and they always said "we are brought to
> you by () records" The DJ always
>
It's legal to accept payment to air a song (or program) if they disclose it on the air. If it isn't disclosed, then it's illegal. I don't know what would be considered payola on some of the airplay, other than some of the brokered programming that airs on Sunday mornings.
 
At the link I provided, at the bottom of the press release, there are two other links. One for "Exhibits" and one for the actual criminal complaint. The exhibit pdf file is pretty interesting. It includes a lot of internal emails, including one or more between Pat Paxton and David Field, that might have some people feeling mighty uncomfortable today.

> > Isn't it legal to get paid for airplay IF you say that you
>
> > are getting paid? The 2 local Entercom stations ran CD
> > Preview as stopsets and they always said "we are brought
> to
> > you by () records" The DJ always
> >
> It's legal to accept payment to air a song (or program) if
> they disclose it on the air. If it isn't disclosed, then
> it's illegal. I don't know what would be considered payola
> on some of the airplay, other than some of the brokered
> programming that airs on Sunday mornings.
> <P ID="signature">______________
SD</P>
 
> Isn't it legal to get paid for airplay IF you say that you
> are getting paid? The 2 local Entercom stations ran CD
> Preview as stopsets and they always said "we are brought to
> you by () records" The DJ always

Legal or not, its bull**** programming. And I love the note
from one of the PDs about how long his "stopsets" become with
a "CD Preview" tacked onto it. Its a "commercial", but its
not counted against their commercial inventory.

Must be wonderful being a Program Director at an Entercom
station.
 
The problem with the CD preview doesn't relate to the charge of payola. It relates to another charge of fraud....that's strickly a NY state law.

The state of NY is also accusing them of violating that law. The fraud part comes in because Entercom tried to manipulate BDS and Medibase and then tried to cover that up via the CD preview feature.....according to the NY AG.

Also, keep in mind that this is a civil suit, no criminal. So the state of NY doesn't have to reach the threshold of "beyond a resonable doubt" to get a victory. NY just needs a "do you believe us more or them".

Believe me, just like the record companies, this one will be settled before every seeing a courtroom, with Entercom admitting no wrongdoing.

> At the link I provided, at the bottom of the press release,
> there are two other links. One for "Exhibits" and one for
> the actual criminal complaint. The exhibit pdf file is
> pretty interesting. It includes a lot of internal emails,
> including one or more between Pat Paxton and David Field,
> that might have some people feeling mighty uncomfortable
> today.
>
> > > Isn't it legal to get paid for airplay IF you say that
> you
> >
> > > are getting paid? The 2 local Entercom stations ran CD
> > > Preview as stopsets and they always said "we are brought
>
> > to
> > > you by () records" The DJ always
> > >
> > It's legal to accept payment to air a song (or program) if
>
> > they disclose it on the air. If it isn't disclosed, then
> > it's illegal. I don't know what would be considered
> payola
> > on some of the airplay, other than some of the brokered
> > programming that airs on Sunday mornings.
> >
>
 
Entercom?

you'd hate to see a few bad eggs bring down what is otherwise considered to be a pretty stellar company. I'm sure the other "biggies" have their share of the same bad cats.

> "RADIO GIANT NAMED IN PAYOLA LAWSUIT
>
> Entercom Alleged to have Traded Air Time for Payoffs
>
> Attorney General Eliot Spitzer today announced a lawsuit
> against one of the nation’s leading radio chains, alleging
> that company illegally traded "air time" for payments.
>
> The suit against Entercom Communications Corp. is the latest
> in the Attorney General’s ongoing effort to combat the
> pervasive influence of "payola" in the entertainment
> industry. Last year, after an extensive investigation by his
> office, the Attorney General announced landmark agreements
> under which two major record labels agreed to halt the
> practice, adopt sweeping reforms and pay fines. Entercom is
> the first company to be sued as part of the probe."
>
> What's interesting is that the suit goes after "CD Preview".
> No secret about how that works. Pat Paxton seems very proud
> of it. Or did.
>
> Link HERE
>
 
Re: Entercom?

I'm not a lawyer so I am taking no position on whether anything they did was illegal or not, but the "bad eggs" who come off looking slimiest are CEO David Field and Programming VP Pat Paxton. The impression I get from reading the emails in evidence, Used Car Salesmen look more appealing.

> you'd hate to see a few bad eggs bring down what is
> otherwise considered to be a pretty stellar company. I'm
> sure the other "biggies" have their share of the same bad
> cats.
>
> > "RADIO GIANT NAMED IN PAYOLA LAWSUIT
> >
> > Entercom Alleged to have Traded Air Time for Payoffs
> >
> > Attorney General Eliot Spitzer today announced a lawsuit
> > against one of the nation’s leading radio chains, alleging
>
> > that company illegally traded "air time" for payments.
> >
> > The suit against Entercom Communications Corp. is the
> latest
> > in the Attorney General’s ongoing effort to combat the
> > pervasive influence of "payola" in the entertainment
> > industry. Last year, after an extensive investigation by
> his
> > office, the Attorney General announced landmark agreements
>
> > under which two major record labels agreed to halt the
> > practice, adopt sweeping reforms and pay fines. Entercom
> is
> > the first company to be sued as part of the probe."
> >
> > What's interesting is that the suit goes after "CD
> Preview".
> > No secret about how that works. Pat Paxton seems very
> proud
> > of it. Or did.
> >
> > Link HERE
> >
> <P ID="signature">______________
SD</P>
 
Songs for sale. Entercom behind the scenes.

> The problem with the CD preview doesn't relate to the charge
> of payola. It relates to another charge of fraud....that's
> strickly a NY state law.

Eliot Spitzer only has jurisdiction over New York State, so yes the lawsuit only relates to New York State. However, I direct your attention to page 7 of the 28 page lawsuit. "22. Federal Law also prohibits the undisclosed sale of airplay." And then: "According to the Federal Communications Commission, "payola" statutes are intended "clearly to prevent deception on the part of the public growing out of concealment of the fact that the broadcast of particular program material was induced by consideration received by the licensee."It's impossible for me to read the evidentiary emails without agreeing with Spitzer's conclusion that CD Preview and CD Challenge were thinly veiled, if veiled at all, attempts to circumvent the law. They were clearl attempting to manipulate charts and public opinion. Legal? Perhaps. Perhaps not. Ethical? Absolutely not.

I don't know if you downloaded, printed and read the entire 28 page lawsuit and 67 pages of evidence, but I did. Afterwards, I felt like taking a shower. The emails detail precisely how much pressure Pat Paxton was under from David Field to generate revenue under this program. There is evidence that the requirement that GM's sign off on deals was not to make sure that laws were complied with, but only that PD's weren't "making bad deals." (Source: Page 50 of evidence exhibit. Email from Pat Paxton to Dan Perseghi.)

There's a particularly pathetic email exchange between Pat Paxton and Tom Teuber
(page 54 of evidence exhibit) where Paxton responds to Tom's complaints about last minute "CD Previews" having to be aired in rated dayparts instead of being "buried" overnight. Paxton accuses Teuber of "inciting others to your cause" (in complaining about the implementation of CD Preview)by cc'ing them on emails he sent to Paxton. Paxton asks for these things to be discussed by phone instead of email. "Email is easy to hide behind", Paxton wrote. Perhaps he knew that email trails are dangerous.

Then there's the email exchange between Paxton and Field. Some disgruntled PD's called Mediabase to complain that a lot of reported spins were really nothing more than these CD Previews. They wanted Mediabase to stop counting them so that they wouldn't have to continue implementing the program which, they said, was generating listener and even client complaints. Paxton tried to find out from Mediabase who among his PD's complained. Field writes to Paxton: "Any idea who did this?" Paxton responds: "Rich wouldn't tell me but he said it was more than one person." Paxton sends an email to his PD's: "If this bullshit happens again, what happens next won't be pleasant." Paxton persuaded Mediabase to go back to counting paid spins.

In an email dated July 20, 2004, Mike Klein sends an email to David Field cc to Pat Paxton, and RVP Steve Godofsky. Subject: Norfolk "these (sic) managment keep firing my friends like Amanda today I want to work at anther entercom station not z-104. Don is taking record company money and makesme help him. he will fire me if i do tell you this." Spitzer's suit says no one looked into his complaint.

Then there's Dave Universal.

From [email protected]
Date: 07/15/2003 05:34:27
To: Brad Davidson@Sony_Music
Subject: Do you need help on Jessica this week?

Do you need help on Jessica this week? 1250? If you don't need help, I certainly don't "need" to play it......thought I'd reach out to one my new boys."


There is ample documentation backing up Universal's claim that Entercom executives knew exactly what was going on the whole time and their feigned shock at what was going on is outrageous.

Do read the lawsuit and evidence. It's fascinating.

You gotta hand it to Spitzer. When did he decide to file this lawsuit? Two days before Entercom's management soiree in Las Vegas! The theme this year is:

"Changing The Game. What happens in Las Vegas... depends on how you play the game." Spitzer evidently thinks they're cheating.

Love to be on a bar stool at The Ritz Carlton Las Vegas this weekend!<P ID="signature">______________
SD</P>
 
Re: Songs for sale. Entercom behind the scenes.

It's my understanding that the CD Preview shows were given proper sponsorship identification, they were run like commercials as part of the traffic log. Therefore this specific program would not be subject to federal payola laws...

Like I said, it only relates to the NY state law regarding fraud.

And yes, I did read all 67 pages and all of the exhibits.

Take money from record companies, don't take money, I don't give a crap....as someone who read the whole thing, I was just trying to be helpful to those who hadn't.



> > The problem with the CD preview doesn't relate to the
> charge
> > of payola. It relates to another charge of
> fraud....that's
> > strickly a NY state law.
>
> Eliot Spitzer only has jurisdiction over New York State, so
> yes the lawsuit only relates to New York State. However, I
> direct your attention to page 7 of the 28 page lawsuit. "22.
> Federal Law also prohibits the undisclosed sale of airplay."
> And then: "According to the Federal Communications
> Commission, "payola" statutes are intended "clearly to
> prevent deception on the part of the public growing out of
> concealment of the fact that the broadcast of particular
> program material was induced by consideration received by
> the licensee."It's impossible for me to read the evidentiary
> emails without agreeing with Spitzer's conclusion that CD
> Preview and CD Challenge were thinly veiled, if veiled at
> all, attempts to circumvent the law. They were clearl
> attempting to manipulate charts and public opinion. Legal?
> Perhaps. Perhaps not. Ethical? Absolutely not.
>
> I don't know if you downloaded, printed and read the entire
> 28 page lawsuit and 67 pages of evidence, but I did.
> Afterwards, I felt like taking a shower. The emails detail
> precisely how much pressure Pat Paxton was under from David
> Field to generate revenue under this program. There is
> evidence that the requirement that GM's sign off on deals
> was not to make sure that laws were complied with, but only
> that PD's weren't "making bad deals." (Source: Page 50 of
> evidence exhibit. Email from Pat Paxton to Dan Perseghi.)
>
> There's a particularly pathetic email exchange between Pat
> Paxton and Tom Teuber
> (page 54 of evidence exhibit) where Paxton responds to Tom's
> complaints about last minute "CD Previews" having to be
> aired in rated dayparts instead of being "buried" overnight.
> Paxton accuses Teuber of "inciting others to your cause" (in
> complaining about the implementation of CD Preview)by cc'ing
> them on emails he sent to Paxton. Paxton asks for these
> things to be discussed by phone instead of email. "Email is
> easy to hide behind", Paxton wrote. Perhaps he knew that
> email trails are dangerous.
>
> Then there's the email exchange between Paxton and Field.
> Some disgruntled PD's called Mediabase to complain that a
> lot of reported spins were really nothing more than these CD
> Previews. They wanted Mediabase to stop counting them so
> that they wouldn't have to continue implementing the program
> which, they said, was generating listener and even client
> complaints. Paxton tried to find out from Mediabase who
> among his PD's complained. Field writes to Paxton: "Any idea
> who did this?" Paxton responds: "Rich wouldn't tell me but
> he said it was more than one person." Paxton sends an email
> to his PD's: "If this bullshit happens again, what happens
> next won't be pleasant." Paxton persuaded Mediabase to go
> back to counting paid spins.
>
> In an email dated July 20, 2004, Mike Klein sends an email
> to David Field cc to Pat Paxton, and RVP Steve Godofsky.
> Subject: Norfolk "these (sic) managment keep firing my
> friends like Amanda today I want to work at anther entercom
> station not z-104. Don is taking record company money and
> makesme help him. he will fire me if i do tell you this."
> Spitzer's suit says no one looked into his complaint.
>
> Then there's Dave Universal.
>
> From [email protected]
> Date: 07/15/2003 05:34:27
> To: Brad Davidson@Sony_Music
> Subject: Do you need help on Jessica this week?
>
> Do you need help on Jessica this week? 1250? If you don't
> need help, I certainly don't "need" to play it......thought
> I'd reach out to one my new boys."
>
> There is ample documentation backing up Universal's claim
> that Entercom executives knew exactly what was going on the
> whole time and their feigned shock at what was going on is
> outrageous.
>
> Do read the lawsuit and evidence. It's fascinating.
>
> You gotta hand it to Spitzer. When did he decide to file
> this lawsuit? Two days before Entercom's management soiree
> in Las Vegas! The theme this year is:
>
> "Changing The Game. What happens in Las Vegas... depends on
> how you play the game." Spitzer evidently thinks they're
> cheating.
>
> Love to be on a bar stool at The Ritz Carlton Las Vegas this
> weekend!
>
 
> Isn't it legal to get paid for airplay IF you say that you
> are getting paid? The 2 local Entercom stations ran CD
> Preview as stopsets and they always said "we are brought to
> you by () records" The DJ always

It's perfectly legal so long as the "sponsor" is identified. There were a couple of large companies talking about charging for airplay. Fortunately, someone determined that that would drive audiences away when you couldn't play what listeners said, in focus groups and music testing, what they want.

That's OK for brokered stations that don't care about numbers, but if you're competing for listeners, it's death.

Rich
 
Re: Songs for sale. Entercom behind the scenes.

It is what it is...easy publicity for Elliot Spitzer during an election campaign. I just wonder if it resonates with the voters of New York State, or if maybe they're more concerned with their level of taxation, or the possibility of another terrorist attack in their state.

Of course, if Spitzer can save the people from exposure to Jessica Simpson music, he can't be all bad, right?

It's my understanding that the CD Preview shows were given
> proper sponsorship identification, they were run like
> commercials as part of the traffic log. Therefore this
> specific program would not be subject to federal payola
> laws...
>
> Like I said, it only relates to the NY state law regarding
> fraud.
>
> And yes, I did read all 67 pages and all of the exhibits.
>
> Take money from record companies, don't take money, I don't
> give a crap....as someone who read the whole thing, I was
> just trying to be helpful to those who hadn't.
>
>
>
> > > The problem with the CD preview doesn't relate to the
> > charge
> > > of payola. It relates to another charge of
> > fraud....that's
> > > strickly a NY state law.
> >
> > Eliot Spitzer only has jurisdiction over New York State,
> so
> > yes the lawsuit only relates to New York State. However, I
>
> > direct your attention to page 7 of the 28 page lawsuit.
> "22.
> > Federal Law also prohibits the undisclosed sale of
> airplay."
> > And then: "According to the Federal Communications
> > Commission, "payola" statutes are intended "clearly to
> > prevent deception on the part of the public growing out of
>
> > concealment of the fact that the broadcast of particular
> > program material was induced by consideration received by
> > the licensee."It's impossible for me to read the
> evidentiary
> > emails without agreeing with Spitzer's conclusion that CD
> > Preview and CD Challenge were thinly veiled, if veiled at
> > all, attempts to circumvent the law. They were clearl
> > attempting to manipulate charts and public opinion. Legal?
>
> > Perhaps. Perhaps not. Ethical? Absolutely not.
> >
> > I don't know if you downloaded, printed and read the
> entire
> > 28 page lawsuit and 67 pages of evidence, but I did.
> > Afterwards, I felt like taking a shower. The emails detail
>
> > precisely how much pressure Pat Paxton was under from
> David
> > Field to generate revenue under this program. There is
> > evidence that the requirement that GM's sign off on deals
> > was not to make sure that laws were complied with, but
> only
> > that PD's weren't "making bad deals." (Source: Page 50 of
> > evidence exhibit. Email from Pat Paxton to Dan Perseghi.)
> >
> > There's a particularly pathetic email exchange between Pat
>
> > Paxton and Tom Teuber
> > (page 54 of evidence exhibit) where Paxton responds to
> Tom's
> > complaints about last minute "CD Previews" having to be
> > aired in rated dayparts instead of being "buried"
> overnight.
> > Paxton accuses Teuber of "inciting others to your cause"
> (in
> > complaining about the implementation of CD Preview)by
> cc'ing
> > them on emails he sent to Paxton. Paxton asks for these
> > things to be discussed by phone instead of email. "Email
> is
> > easy to hide behind", Paxton wrote. Perhaps he knew that
> > email trails are dangerous.
> >
> > Then there's the email exchange between Paxton and Field.
> > Some disgruntled PD's called Mediabase to complain that a
> > lot of reported spins were really nothing more than these
> CD
> > Previews. They wanted Mediabase to stop counting them so
> > that they wouldn't have to continue implementing the
> program
> > which, they said, was generating listener and even client
> > complaints. Paxton tried to find out from Mediabase who
> > among his PD's complained. Field writes to Paxton: "Any
> idea
> > who did this?" Paxton responds: "Rich wouldn't tell me but
>
> > he said it was more than one person." Paxton sends an
> email
> > to his PD's: "If this bullshit happens again, what happens
>
> > next won't be pleasant." Paxton persuaded Mediabase to go
> > back to counting paid spins.
> >
> > In an email dated July 20, 2004, Mike Klein sends an email
>
> > to David Field cc to Pat Paxton, and RVP Steve Godofsky.
> > Subject: Norfolk "these (sic) managment keep firing my
> > friends like Amanda today I want to work at anther
> entercom
> > station not z-104. Don is taking record company money and
> > makesme help him. he will fire me if i do tell you this."
> > Spitzer's suit says no one looked into his complaint.
> >
> > Then there's Dave Universal.
> >
> > From [email protected]
> > Date: 07/15/2003 05:34:27
> > To: Brad Davidson@Sony_Music
> > Subject: Do you need help on Jessica this week?
> >
> > Do you need help on Jessica this week? 1250? If you don't
> > need help, I certainly don't "need" to play
> it......thought
> > I'd reach out to one my new boys."
> >
> > There is ample documentation backing up Universal's claim
> > that Entercom executives knew exactly what was going on
> the
> > whole time and their feigned shock at what was going on is
>
> > outrageous.
> >
> > Do read the lawsuit and evidence. It's fascinating.
> >
> > You gotta hand it to Spitzer. When did he decide to file
> > this lawsuit? Two days before Entercom's management soiree
>
> > in Las Vegas! The theme this year is:
> >
> > "Changing The Game. What happens in Las Vegas... depends
> on
> > how you play the game." Spitzer evidently thinks they're
> > cheating.
> >
> > Love to be on a bar stool at The Ritz Carlton Las Vegas
> this
> > weekend!
> >
>
 
Re: Songs for sale. Entercom behind the scenes.

> It is what it is...easy publicity for Elliot Spitzer during
> an election campaign. I just wonder if it resonates with
> the voters of New York State, or if maybe they're more
> concerned with their level of taxation, or the possibility
> of another terrorist attack in their state.
>
> Of course, if Spitzer can save the people from exposure to
> Jessica Simpson music, he can't be all bad, right?

It would be a serious mistake to underestimate Elliot Spitzer in New York. He's incredibly popular for having gone where the Feds feared to tread. I was in New York City broadcasting for most of his time in office.

I believe he's sharp enough only to actually go after those he can prove violated the law. He has too much political capital at stake to go off on a tangent.

Rich
 
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