The money that Warner Music has agreed to pay in the civil settlement will be distributed by the Rockefeller Philanthropy Advisors to New York State to fund music programs in the state.
''We consider this to have been a valuable process," said Warner Music spokesman Will Tanous. ''From our perspective, radio cannot be too consumer-driven. The music that people hear on the radio always should represent the highest quality the industry has to offer."
Spitzer said the settlements with Sony and Warner should benefit artists and consumers, who can expect a wider range of artists on the airwaves based on ''artistic merits."
A 1960 federal law and related state laws bar record companies from offering undisclosed financial incentives in exchange for airplay. The practice was called ''payola," a contraction of ''pay" and ''Victrola," the old wind-up record player.
In the 1950s and '60s, most payola involved direct payments of cash to DJs. Today, payola comes in the form of air fare, electronics, and tickets to top sporting events and concerts to radio programmers as well as payments to radio stations.
Spitzer said companies have hired promoters to act as conduits for payments to radio stations and pay for ''spin programs" to increase airplay of some recordings that are supposed to be based on popularity among listeners.
