Sony Ponies Up for Payola

Spitzer stated that some employees attempted to cover up the transactions as paperwork for fictitious contest winners.

The accepted but rarely acknowledged practice of payola is "wrong and improper," conceded Sony spokesperson John McKay. "Despite federal and state laws prohibiting unacknowledged payment by records labels to radio stations for airing of music, such direct and indirect forms of what has been described generically as 'payola' for spins has continued to be an unfortunately prevalent aspect of radio promotion. Sony BMG acknowledges that various employees pursued some radio promotion practices on behalf of the company that were wrong and improper, and apologizes for such conduct. Sony BMG looks forward to defining a new, higher standard in radio promotion."

According to Spitzer, the $10 million settlement will be distributed to a number of non-profits and set aside for music education programs.

Spitzer has requested documents and information from other industry powerhouses: EMI, Warner Music Group and Vivendi Universal SA's Universal Music Group. Those investigations are currently under way.