CORRECTED-Warner Music to pay $5 mln in NY “payola” probe

(Please read in paragraph 3… Warner Music … instead of
… Warner, part of Time Warner Inc.)

NEW YORK (Reuters) – Warner Music Group Corp., one of the
largest U.S. record companies, will pay $5 million to settle a
New York state probe into how it influenced which songs are
played on the radio, New York State Attorney General Eliot
Spitzer said on Tuesday.

The probe involved “pay-for-play” practices, commonly known
as “payola,” in which companies are accused of paying radio
stations or promoters to secure air time for songs. In July,
Sony BMG agreed to pay $10 million to settle a related
pay-to-play probe.

Warner Music agreed to stop making payoffs in return for
airplay, and fully disclose all “items of value” provided to
radio stations, Spitzer said. It also issued a statement
acknowledging its “improper conduct,” the attorney general
said.

The $5 million will be used to fund music education and
appreciation programs, Spitzer said.