Sony Settles in Payola Case

Sony-BMG, the world's largest producer of recorded music, has agreed to stop paying DJ's to play its songs. The practice, called payola, is a violation of state and federal laws.

Sony will also pay a ten million dollar fine to settle an investigation launched by State Attorney General Eliot Spitzer. He says Sony used a variety of old and new ways of influencing radio stations, including making indirect cash payments and having employees call the DJ request lines.

SPITZER: Payola drives promotion, it limits the diversity of music that is on air, it limits the access of artists to airtime and hence their capacity to succeed, and it's illegal.

REPORTER: Spitzer says he is also investigating other large recording studios and radio broadcasting conglomerates. Sony acknowledged breaking the law.