by Paul Heine and Katy Bachman, Mediaweek
Clear Channel has confirmed that it has received a subpoena from Eliot Spitzer, as part of the New York State Attorney General's investigation into allegations of payola in the radio industry.
In a statement, the company said it is "cooperating fully with [Spitzer's] investigation into the industry's use of independent promoters and associated allegations of 'pay for play.'"
Clear Channel isn't the only company to be subpoenaed as part of the investigation. Both Entercom and Infinity also received subpoenas. Contacted by Billboard Radio Monitor, Infinity declined to comment on the report and officials at Entercom weren't immediately available to comment.
All three companies have recently terminated programmers over allegations of improper relationships with record companies.
Clear Channel seems to be in a rush to clean up its act... as a member of the concert & promotions side of the industry, I can attest to CCE's strongarm tactics.. fortunately there is a groundswell of revulsion against Clear Channel, no one likes dealing with them, they're just forced to.
This is just the first in a series of Clear Channel - Media consolidation diaries, I promise. Let's just say I did not have a good day today with my "friends" at the local Clear Channel office. Nope. not a good day at all......
Update [2005-2-25 2:14:20 by cdelia]: For those readers just getting familiar with the whole Clear Channel problem, may we recommend two quite well-written and thought-provoking series..
Big World: how Clear Channel programs America by Jeff Sharlet
Radio's big bully by Eric Boehlert