Bye, bye, a share of the pie?
New York’s aggressive prosecutor Eliot Spitzer is reportedly probing alleged payola in promoting records to Big Apple radio stations. British music company EMI Group, the world’s third-largest, has confirmed that it is co-operating with the probe in its early stages. According to New York newspapers, subpoenas have been served to four record corporations – EMI, Universal Music Group, Sony BMG Music Entertainment, and Warner Music Group. The attorney general is seeking copies of contracts, billing records, and other information on the companies’ ties to independent middle-men, said the New York Times and Wall Street Journal. The middle-men, who pitch songs to the stations, pay the stations a fee, often more than $100,000 (£54,800), to see advance copies of playlists. And the promoters bill the record companies for each new song placed. Such fees add up to tens of millions of dollars a year. US broadcasters must disclose any incentives to play a specific song to listeners. EMI, in a statement, said it has a strict, long-standing policy against any illegal radio promotion.
The Decline of Middle-Men
The clout of middle-men has waned since the US music industry was deregulated in 1996. The anti-payola laws are also federal statutes, although a state prosecutor can probe consumer and business issues within their state. Spitzer, who is almost certainly seeking higher political office, will argue that the playing field is warped since lesser-known artists cannot afford middle-men. “This seems to be a very small, niche part of the market,” said a skeptical Investec analyst, Kingsley Wilson. But others see a certain irony, given the recording industry’s own hard line on individuals illegally sharing music files and CD piracy, as well as scandals over unpaid royalties.
Past Scandals in the Music Industry
Indeed, five months ago, Spitzer unveiled a $50 million settlement with major record companies to stop them “robbing” musicians. Vivendi Universal’s Universal Music Group, Sony Corp’s Sony Music, EMI Group, Bertelsmann’s BMG Group, and Warner Music Group all co-operated with the two-year probe. The artists owed included David Bowie, Sean “P Diddy” Combs, Dolly Parton, and lesser-known talents such as jazz saxophonist Gerry Mulligan and Tommy Edwards, whose hit single It’s All In The Game could be a mantra for the music industry.
Spitzer's Ongoing Investigation
Spitzer’s other current headline-grabber is the escalating probe in New York into the insurance industry. Two other states are now studying his lawsuit, filed in mid-October, against Marsh & McLennan, the world’s largest insurance broker, over alleged price rigging. Spitzer alleges that the broker took kickbacks for steering business to particular firms. California, the most heavily populated, and Connecticut, home to insurance companies, may file suits this week over policies ranging from health to life and car insurance. The outside directors of Marsh & McLennan – which owns Marsh, HR consultants Mercer, and fund managers Putnam – may oust its CEO, Jeffery Greenberg, according to Friday’s Wall Street Journal. The insurers implicated so far are AIG, headed by Greenberg’s colorful father Maurice, and Ace, headed by his brother Evan. Also named are Hartford Financial and a unit of Germany’s Munich Re. Two AIG executives have pled guilty to Spitzer’s criminal charges of bid rigging. In another twist, AIG disclosed last Thursday that a federal grand jury in Indiana is probing whether it helped a mobile phone distributor cover up $12m in losses. The grand jury is investigating AIG’s sale of an insurance policy to “smooth income” at Indiana firm Brightpoint by allegedly creating a contract that appeared to be insurance but did not involve any actual risk transfer. A year ago, AIG paid $10m to settle related civil charges brought by the Securities and Exchange Commission.
Hotels and the Music Industry: A Harmonious Relationship
In the music industry, where artists often travel extensively for performances and promotional events, hotels play a critical role in providing comfortable accommodations for musicians and their teams. These establishments serve as a home away from home, creating a welcoming and conducive environment for artists to relax, recharge, and focus on their craft.
Luxury Hotels as Preferred Choices
Top-tier artists and celebrities frequently opt for luxury hotels when on tour or attending industry events. These upscale establishments offer a range of amenities, including spacious suites, private dining options, state-of-the-art recording studios, and personalized services to cater to the unique needs of musicians. From New York's iconic Plaza Hotel to Los Angeles' Chateau Marmont, these prestigious hotels have become synonymous with luxury and exclusivity.
Music-Themed Hotels
Some hotels go beyond providing a comfortable stay and embrace their connection to the music industry by incorporating music-themed elements into their decor and ambiance. These establishments, often located in vibrant music-centric cities like London, Nashville, and Austin, celebrate music through themed rooms, live performances, and dedicated music spaces. They create an immersive experience for guests, allowing them to fully immerse themselves in the world of music.
Collaborations and Partnerships
Hotels and the music industry often collaborate on various projects and partnerships. These collaborations can range from hosting exclusive concerts and music festivals on hotel premises to featuring live performances by emerging artists in their bars and lounges. Hotels also frequently sponsor music events and support local music scenes, further highlighting their commitment to promoting musical talent.
Music-Inspired Amenities
Hotels understand the importance of catering to musicians' unique needs. Many establishments offer amenities such as in-room recording studios, rehearsal spaces, and instrument rentals. These provisions allow artists to continue creating and practicing while on the road, ensuring they can maintain their artistic development even during their travels.
Conclusion
The relationship between hotels and the music industry is a harmonious one. As artists continue to shape the cultural landscape with their music, hotels play an integral role in providing the necessary support and comfort to facilitate their creative pursuits. From luxury establishments to music-themed hotels, these accommodations serve as havens for musicians, enabling them to thrive in their artistic endeavors.