Battleangel

So that is how the so called creative industry works …

As a result of investigations by New York state Attorney General Eliot Spitzer, Sony BMG Music Entertainment agreed Monday to pay $10 million and stop bribing radio stations to feature its artists.

Spitzer called payola — illegal payoffs for airplay designed to manipulate record charts, generate consumer interest in records and increase sales — “pervasive” in the industry and indicated the other major labels — EMI, Warner Music Group, Vivendi’s Universal Music Group — are also under investigation and could face similar penalties.

Sony, whose $10 million payment will be distributed to New York State not-for-profit entities to fund programs aimed at music education and appreciation, was accused of:

- Outright bribes to radio programmers, including expensive vacation packages, electronics and other valuable items;

- Contest giveaways for stations’ listening audiences;

- Payments to radio stations to cover operational expenses;

- Retention of middlemen, known as independent promoters, as conduits for illegal payments to radio stations;

- Payments for “spin programs,” airplay under the guise of advertising.