CBS has agreed to pay 2 million dollars to the state of New York in a settlement agreement between it and the office of Elliot Spitzer over allegations that CBS took payment for favorable placement on radio stations it owns in Buffalo, Rochester and New York City.

The settlement follows similar deals cut by Sony, EMI and Universal for buying placement on radio. CBS Radio spokeswoman Karen Mateo told the press, "CBS Radio is pleased to end this two-year music investigation without litigation [...] The company, however, wants to make clear that in entering into this settlement, CBS Radio does not admit to any liability or violation of law."

Spitzer may have caught them all with their hands in the cookie jar but, this is a far cry from the attention gained by the payola scandal of the late 1950's. For what it's worth, the FCC is still operating its own payola investigation. FCC commissioner Adelstein called the settlement a "breakthrough" (you've got to be kidding me? right?) and added, "This should provide new fuel to drive the FCC payola investigation to completion, since payola saps the vitality out of radio, this is a win not only for listeners everywhere, but also for the radio industry itself."

I wouldn't look for US based corporate controlled radio to become a panacea of unheard unsigned artists anytime soon.

[via IHT]