“Universal Music Group Recordings Inc., the world’s largest record company, has agreed to pay $12 million to settle a payola case that claimed the company provided vacations, electronics and other bribes to increase radio play for their artists, New York Attorney General Eliot Spitzer said Thursday”

“This is the largest fine so far in the war between Eliot Spitzer and the music industry, surpassing the $10 million that Sony had to pay and the $5 million for Warner Music Group.”

“UMG has illegally provided radio stations with financial benefits to obtain airplay and boost the chart position of its songs,” Spitzer said in papers filed in state Supreme Court along with the settlement. “UMG has obtained airplay for its songs through such deceptive and illegal practices as bribing radio station employees, on occasion, to play UMG songs, providing a stream of financial benefits to radio stations, to assist with stations’ overhead costs or to provide promotional support, on condition that UMG records receive airplay,” Spitzer stated. UMG was also accused of “engaging in fraudulent call- in campaigns to increase airplay.”

“Consumers have a right not to be misled about the way in which the music they hear on the radio is selected,” Spitzer said. “Pay-for-play makes a mockery of claims that only the ‘best’ or ‘most popular’ music is broadcast.” 

 

 Read the full article here.

 

American Idol is such a bona fide Hit that it has changed the business landscape. Simon Cowell who reportedly earns more than 30 million a year is literally crushing every show in the path as it eats up millions of dollars in advertising money.

American Idol has even created a “cottage industry”. According to variety.com, “TV shows, newspapers and record labels that touch the show have enjoyed a lucrative ride on the “Idol” express. And the show’s shadow economy isn’t limited to media — it’s also lifted the fortunes of a wide array of “Idol” carpetbaggers, from Cingular to Coca-Cola to a host of licensees.” Read the full article here.

 

The music industry who had an estimated loss of 1 billion in CD sales last year will target pirates in major cities including NYC, Los Angeles, Chicago, and San Francisco. Not suprisingly, Urban and Latin Music is the most popular among pirates who burn discs. You can read the full article here.

Rock is back on the charts this week. Prog rockers Tool who have a #1 album is expected to sell a total of 500K+ as Pearl Jam will hold the #2 position with sales of a minimum of 250k. Prepare for the Red Hot Chili Peppers new record Stadium Arcadium that drops May 9th. RHCP will end up taking home the golden crown by years end.

Los Angeles-based music publishing company for film and television is seeking broadcast-quality sample free Rock, Pop/Rock, Country, Punk and Pop-Punk.  We offer non-exclusive agreements.  Credits include “Scary Movie 4”, “Be Cool”, “Bowfinger”, “A Man Apart”, “B.A.P.S.”, Wayans Brothers, Yo Momma, ESPN Awards, etc,  Please send CD’s to:

Mamalahoa Publishing
Attn: Alexandra Nolan, VP of A&R
330 S. Barrington Ave.
Suite 305
Los Angeles, CA 90049.

80’s influenced Liam and Me will be performing at the hipster nightspot The Annex (NYC) formerly Eleven on Monday, May 8th. When performing in front of the industry, the vibe needs to be right as majors and indies will be attending. This philadelphia 4 piece has an active touring schedule and their myspace seems to be busy. It’s a start. Check out the video, it has flaws but it is interesting. For more information email lawyer Dan Friedman.

Hailing from York, Pennsylvania, the Underwater have managed to keep themselves relevant even through the peaks and valleys since their inception in late 2001. Musically, the Underwater are hard to pin down although they have managed to create a tossed salad with elements of emo, progressive rock and mainstream rock. In 2002, the band toured with hardcore acts such as ZAO, Unearth, Underoath, and Dead Poetic. In 2003, The Underwater released a record titled Bleed Me Blue (EP) on Tribunal Records which sold 6,000+ and landed them on big ticket tours including Nickelback, Seether and The Fire Theft. In 2005 the band found themselves free from contractual obligations thus they released their second EP in 2 years entitled “Lungs”. For more information contact Drake Sutton-Shearer at 818-761-2779 or Bill McGathy at 212-924-7775.

Check out the track Maybe Love (mp3)