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The Plot Thickens
Posted by RockGeorge D. Ziemann in on January 6, 2004 at 1:19 PM



by George Ziemann

A key piece in the RIAA puzzle went past us a couple of days ago. We almost didn't notice it at all and barely talked about it when we did.

Universal Music mulls music TV venture

NEW YORK (Jan 3, 2004) -- Universal Music Group, the world's largest record label, is teaming up with satellite broadcaster DirecTV and a prominent pornography video company to launch a music channel featuring uncensored videos. According to a report Friday in the Los Angles Times Universal, a unit of Vivendi Universal, is in negotiations with DirecTV to offer the new subscription-based channel, known as "1 AM." Universal and Vivid Entertainment Group are expected to split ownership of the venture, the newspaper said, citing sources familiar with the matter.

Other partners in the channel will be the Endeavor talent agency and Shady Records, the Universal-backed label managed by rap superstar Eminem.

The main players behind the channel are Jimmy Iovine, chairman of Universal's Interscope label and Ari Emanuel, a founding partner of Endeavor, according to the report.

------- snip -------

In 1986, Retired FBI agent William P. Kelly told the Meese Commission: "In my opinion, based upon twenty-three years of experience in pornography and obscenity investigations and study, it is practically impossible to be in the retail end of the pornography industry without dealing in some fashion with organized crime…" (Meese Commission)

Officer Thomas Bohling of the Chicago Police Department Organized Crime Division, Vice Control Section reported, "it is the belief of state, federal, and local law enforcement that the pornography industry is controlled by organized crime families. If they do not own the business outright, they most certainly extract street tax from independent smut peddlers." (Ibid. p. 1048)

------- snip ------

And then there is Universal Music's history, which includes the infamous MCA ("Music Cemetary of America"), which narrowly escaped action by the US Justice Dept. during the Reagan administration,as Dan Moldea tells us in Dark Victory.

Reagan and his closest friends have portrayed and defended the president's business transactions with MCA, which date back to 1940, as being totally above suspicion. But there remain numerous unanswered questions and allegations about the relationship between Reagan and MCA. These doubts raise delicate issues that involve possible personal and political payoffs--as well as links to major Mafia figures, particularly Beverly Hills attorney Sidney Korshak, who has been described by federal investigators as the principal link between the legitimate business world and organized crime.

In 1962, the Antitrust Division of the U.S. Department of Justice tried to resolve some of these questions, but their secret investigation was settled out of court before the evidence could be presented. The results of the probe were never made public, and no one close to MCA was ever indicted.

MCA first began to receive national attention in 1946, when a federal court in Los Angeles ruled against the company for antitrust violations. At the time, MCA was simply a talent agency, booking bands in nightclubs and actors in motion pictures.

In rendering his decision, the presiding judge declared that MCA held a virtual monopoly over the entertainment business. This antitrust suit, one of many legal actions filed against MCA over the past fifty years, involved a San Diego ballroom operator who had accused MCA of demanding exorbitant prices from him to book bands for his dances--charging him much more than competing ballrooms were paying for their musical acts. The jury found that MCA's practices had restrained trade in the band-booking business, and it awarded the ballroom owner a $55,000 judgment.

In deciding against MCA, the judge called the talent agency "the Octopus . . . with tentacles reaching out to all phases and grasping everything in show business." The image of "the Octopus" remained and became MCA's nickname in both the Hollywood trade and the press.

After several abortive attempts to investigate MCA for antitrust violations, the federal government--upon the election of John Kennedy as president and the appointment of Robert Kennedy as attorney general--began a concentrated probe into MCA's business affairs. The government had evidence that MCA had engaged in numerous civil and criminal violations of law and empaneled a federal grand jury to hear the specifics of its charges, which included restraint of trade, conspiracy with SAG to monopolize talent and film program productions, extortion, discrimination, blacklisting, and the use of predatory business practices.

Among those called to testify was Ronald Reagan, who displayed a remarkable loss of memory while on the witness stand. Soon after, the federal income tax records of Reagan and his wife were subpoenaed for the years following the MCA-SAG blanket waiver.

In the midst of the grand jury's investigation, MCA purchased Universal Pictures and its parent company, Decca Records. The government immediately went to court, seeking to block MCA's takeover of the corporation. However, after lengthy negotiations between attorneys for the Justice Department's Antitrust Division and MCA, a consent decree was issued and the case was considered closed. The litigation forced MCA to choose whether it wished to be either a talent agency or a production company. Considering that its production efforts yielded nearly ten times more money than the talent agency, the decision was an easy one: MCA dissolved its talent agency.

-------- Snip ---------

A year later, Moldea revisited the subject with an article titled, MCA, Music and the Mafia which, among other things describes the Morris Levy story, the music and movie industries' deep ties to organized crime (the Genovese family in particular), the cutout scam and how it all quietly just went away.

Six months ago, Vivendi/Universal began to eliminate the MCA name altogether?

Let's see... Five major crime families, five major labels... coincidence? And Bronfman's family (Seagram's) has been mob-friendly since Prohibition.

"The reason why the RIAA comes off as a gang of ignorant thugs is because, well, how do I put this -- they are." -- Todd Rundgren, Oct. 22, 2003

This would explain a lot. All of the collusion, extortion as a marketing tool, price-fixing, East Coast vs West Coast "gang wars" between record labels, going after file-sharers instead of true counterfeiters, "unavailable" manufacturing records, recording contract terms, media domination and control, and on and on.

In fact, it's the only explanation wherein all of those annoying "How could they possibly think THAT was a good idea?" type of questions finally have a logical answer, including the unusual silence on the part of the artists.


User Comments

DMemberPyroHazard
Date: January 6, 2004 @ 1:35 PM
Music industry and the mafia? thats not surprising. XD

The RIAA act like the mafia anyways

Cary: I told yeez, I gotta sue yee, badabing badaboom!
IntermediateSuikiogiaz
Date: January 6, 2004 @ 1:38 PM
Hmm.. very interest article George.
Advancedpepe512000
Date: January 6, 2004 @ 2:46 PM
Universal Music Group, the world's largest record label, is teaming up with satellite broadcaster DirecTV and a prominent pornography video company to launch a music channel featuring uncensored videos.

So much for their wanting to get p2p file sharing declared a haven for pornography and terrorist activity. They really do have no shame whatsoever and this tops the list. ~~pepe~~
DMemberAccipiter777
Date: January 6, 2004 @ 3:02 PM
"The industry can take solace in the lessons of history. Every new technology is perceived as a threat to the status quo. The printing press was supposed to destroy early publishing efforts. The VCR was supposed to destroy the movies. TiVo was supposed to destroy television. Last time I checked, publishing, film and TV companies are still in business."

"The message to the recording industry: Don't blame the technology, don't blame the technology providers, and, while you're at it, don't waste time blaming the people. Taking milk money from twelve-year-old girls, like the one from the projects sued by the industry last year, is bad for business. The success of kosher download services like iTunes proves that the record labels can find new ways to cash in on the changing times."

Article by DAVID KUSHNER
http://www.rollingstone.com/news/newsarticle.asp?nid=19160


Pretty good arcticle.
Advancedmroop
Date: January 6, 2004 @ 3:12 PM

MCA is also known as the Musicians Cemetary of America because they have killed so many careers with their inept business practices.
DMemberJinsoku
Date: January 6, 2004 @ 3:32 PM
That's actually freaking creepy. That means those people have some nasty tie ins to the government probably, moreso now than we thought before.

All I can say is "yikes".
Advancedcompmore
Date: January 6, 2004 @ 3:49 PM
Entertainment, like gambling, prostitution, and numbers, has been the gravy of Mafia money chests for decades
DMemberBrandonH
Date: January 6, 2004 @ 4:01 PM
The RIAA wants P2P shut down so there is less competition for distributing porn. Not mention, in addition to music 'piracy', they don't want anyone 'pirating' their pornography.
Advancedgoldenpi
Date: January 6, 2004 @ 4:18 PM
I was reading a piece of propaganda earlier claiming p2p was full od child porn. MTV was on (family watch it sometimes). Britney was dancing in a school uniform with her shirt tied in revealing knots.
AdvancedTheSherminator
Date: January 6, 2004 @ 5:52 PM
Brandon, agreed.

On one front they try to give P2P bad publicity with the porn/child porn argument and on the other UMG is teaming up with the porn industry. Not to mention all the garbage in the songs & videos on MTV. I guess P2P is a threat to their music as well as their porn.

Folktomsong
Date: January 6, 2004 @ 5:52 PM
MCA's Lew Wasserman was best friend of Jack Valenti. Wasserman was offered a White House job (under Johnson)--but they didn't want to draw the heat of the Mafia investigations. The history of MCA is really one of using feared mob lawyer Sindney Korshak to bust unions. (with help from J Edgar Hoover)

We've never had music unions for that reason. The heat of the Kefhaufer investigations really drew Wasserman's anger. Prior to that time, Mafia muscle was sufficient to grease the wheels of commerce. But as an industry matures, one must go from the "underground" to the "above ground." Put on a suit. Put your kid thru law school. Las Vegas' rise paralleled the entretainment business transition. After being forced to divest their vertical structure of the MCA agency OR the televison productions in Universal City, Wasserman realized he had to get serious.

These Bobby Kennedy DOJ goons might be a real irritation.

Hence, it was a simple step to put your Bedtime with Bonzo goofball in the White House. Suddenly, MCA started looking real Republican.
AdvancedPhantomGhost
Date: January 6, 2004 @ 6:07 PM
I've always thought that the similarities between the RIAA and organized crime were suspicious. Now I know why.

1) Both flout the law,
2) Both pay big bucks to influence politicians, (throughout history you'll see this is true)
3.) Both have no respect for opposition and can't accept losing,
4.) Anyone who challenges them is subject to their anger.

There's more, of course. But the similarities are disturbing, as is this relevation.

:-:~ Phantom
RockgdZiemann
Date: January 6, 2004 @ 6:07 PM
Jack Valenti’s agency was in charge of the press during the visit of President Kennedy and Vice President Johnson to Texas. Valenti was in the motorcade (six cars back of the President) in Dallas on November 22, 1963. Within an hour of the assassination of John F. Kennedy, Valenti was aboard Air Force One flying back to Washington with the new President as the first newly hired Special Assistant to the President.

On June 1, 1966, Valenti resigned his White House post to become the third man in MPA’s history (founded in 1922) to become its leader.

http://www.mpaa.org/jack/jack/content.htm
RockgdZiemann
Date: January 6, 2004 @ 6:12 PM
Mitch Bainwol -- Executive Director National Republican Senatorial Committee

Career Background

Spent 13 years working for U.S. Rep. and then Sen. Connie Mack. Served under Jim Nicholson as chief of staff of the Republican National Committee and later as director of the party's platform development in 2000. Prior to joining the NRSC as executive director in January of 2001, worked as a consultant with the public affairs firm of Clark & Weinstock.
RockgdZiemann
Date: January 6, 2004 @ 6:33 PM
If the key to the industry, as Wasserman apparently grasped from the start, was control of the unions, then the key to the unions was, by and large, the mob--a connection that MCA was uniquely suited to manage, thanks to its Chicago roots.

Luckily, the union's president at the time was none other than Wasserman's longtime client and crony Ronald Reagan, who had already played a vital role in crushing Sorrell's union. Over several months in early 1952, maneuvering "in ways so characteristically deft and traceless that even FBI and grand jury investigations undertaken later would be unable to fully reconstruct [them]," Wasserman got what he wanted: a unique waiver that gave MCA blanket permission to produce as many damn television shows as it cared to. (Reagan's reward was to have his flagging career revived by starring in a couple of them.) Since MCA shows used MCA talent, all Wasserman needed to "square the circle" was a compliant network. Soon enough, he had that, too: An astounding sweetheart relationship with NBC effectively if informally gave Wasserman's company control of large chunks of the network's schedule. By the 1959-60 season MCA was getting a cut on nearly half--45 percent, to be exact--of all the series aired in prime time.

In his final years, besides talking to Bruck, he seems to have experimented, mildly, with developing a human side, growing reminiscent and taking an interest in his grandchild in the style of--the inevitable reference--the elderly Vito Corleone puttering around his tomato patch. No less redolent of The Godfather is this earlier Wasserman self-summary: "People misuse the word power. They think it implies an abuse. I don't consider I have power. I have relationships."

What he meant by that may be summed up by a story he told Bruck about taking MCA client Alfred Hitchcock on a jaunt to Cuba in the '50s. In a Havana restaurant, another acquaintance of Wasserman's joined the party, incredulously asking Lew's wife, "Is that Alfred Hitchcock?" Turning to Wasserman, Hitchcock asked, "Is that Meyer Lansky?
DMemberFewerInhibit...
Date: January 6, 2004 @ 7:00 PM
From my early days I was a graphic artist at a publishing company. After about 3 months "they" came in to the design area and gave 43 of 45 GA's their final checks. The next day the last 3 of us were told that the commpany was going from 400 legit mags to 200 hardcore adult, "if you don't like it, you can leave now" was the message. The company was run as we found out by a VERY serious group of Russian Jews that were heavily connected.

They had a big bust a few months later, computers, files etc. After a few weeks we all had new Macs and stuff, and 5 law enforcement officials that were involved disaapeared from the earth. Interestingly, a group of security guards on the property also worked for or had relatives that worked for the local police station as well. A month later, 20 more us departed the company. The adult world of entertainment is, was and always be run ultimately by organized crime. In every country I have visited, it is that way also.
DMemberFewerInhibit...
Date: January 6, 2004 @ 7:03 PM
Also, look at what happened to Tom Petty when he challenged MCA and it's pratices, and won.

A subsequent house burning was in order - with him and his family in it!
DMemberkoemoejoe
Date: January 6, 2004 @ 7:39 PM
"So much for their wanting to get p2p file sharing declared a haven for pornography and terrorist activity. They really do have no shame whatsoever and this tops the list." ~~pepe~~

what your failing to relize that thay have real resons to call p2p havens for pornography and terrorist activity and wanting the public to stop sharing porn

you see thay thay sell porn and thay extort/terrorize amracans in any way thay can

looking at it this way would mean thay are trying to protect thair other bisness
porno!!!!!!!

since it's all about takeing porn and music back from the pirates who are killing on the high seas all 90 million of them or so the GUV,RIAA and the press seems to clame while at the same time all 90 million of them D/L 200 records a day all of witch the labels expect would have been sold for 20$ a peace

o yea by the way if the lables are all involved with the mafia it would only make sence thay would use tackets like trying to make folks buy records thay do not want nor need....

this makes alote more sence now? don't it?
Advancedmtekk
Date: January 6, 2004 @ 7:56 PM
Riaa errr.. mofia, i can see the simmularitys except for the fact that the mafia doesn't go cry to the government to get their way when doing their illegal practices (err mugging ppl.)

The RIAA is worse than the mofia, they are a bunch of rabbid two year olds. who are totally self-centered and are in dire need of a spanking.

the RIAA hates the internet and p2p because they didn't think of it first and can't controol it. their other business is obviously porn.

Also P2P is not a haven for terrorist activities. You can't prove it and also it's practically impossible, rember that's practically. this is bull shit that the RIAA is making up so they can get controol over the p2p networks, which won't happen, because p2p is p2p.

I will defend p2p and p2p2p forever.
JazzJazzmary2U
Date: January 6, 2004 @ 10:23 PM
.. just watch your back, George, thugs are everywhere.. Shakes Head
RockgdZiemann
Date: January 6, 2004 @ 11:00 PM
Yeah, Phoenix is a prime destination for the Witness Relocation Program.

What I see as the major problem to all of this is that, if this is where the path really leads, the government must know about it. Kind of like Strom Thurmond's mysterious daughter that everyone in the state but no one in the media or government seemed to be aware of.

If that's where this goes, we have a much larger problem than just a couple of greedy morons in suits.

And a larger reason than ever to stay away from all things RIAA.
DMemberSonicHumanoid
Date: January 6, 2004 @ 11:03 PM
To continue Phantom's list:

5) Charges lots of money for an often inferior product
6) Tries to make you believe that anyone who is their enemy is your enemy
7) Are complete *&#$ers!
DMemberdeath123
Date: January 7, 2004 @ 1:14 AM
one day, thier crimes will be uncovered. in the meantime i'm reading this..
http://maddox.xmission.com/musicindustry.html
DMemberLitheon
Date: January 7, 2004 @ 1:22 AM
I......read this and the comments of all of you who have posted before me. Suddenly.......I feel that it's no longer.....just the few that are trying to take control and run our lives. I can't explain how I see things now with just words, but I see three sides. Those who are attepmting to gain control, this article stating that they are just about everyone who wants more money and power and doesn't care how they get it. Those who are the puppets, government and the media, and then there is us the little guys. I don't want to make it sound like what we do here is futile, but I now see the grand picture and it goes faaaaaaarrrrr beyond the RIAA, MPAA, Microsoft, Wal-Mart, Intel or any other corporation. At the risk of sounding cleeche' I can only put it as being pure evil at work. Trying it's hardest to exact control on all forms of life. I think we might be hearing about the us being able to implant those smart chips from the credit cards under our skin soon. This is the best I can do to put what I've just realized into words and I know it's very little, almost nothing some of you may already see it though.
RockgdZiemann
Date: January 7, 2004 @ 2:05 AM
There are more than three sides, Litheon.
DMemberJohn316
Date: January 7, 2004 @ 9:54 AM
Litheon, I do fully realize what you are saying. To me and alot of people I know this has Biblical overtones to it. What I believe is that all of these control and power issues are being driven by one evil unseen force as of yet. Get prepared the worse is yet to come. But don't fret the one true King (Jesus) will return soon and bring light to dark and the corrupted to justice. Have faith and be patient for those in charge of this world will have to give an account of all their wrong doings and face the ultimate Judge who can't be intimidated, bribed, or coherced. Their day will come and the righteous will be lifted up above their oppressors. This is a view from a Christian view point. Peace
RockgdZiemann
Date: January 7, 2004 @ 11:34 AM
John316 -- But we'll all be dead then, which really does nothing to address the problem at hand.
Otherindependentm...
Date: January 7, 2004 @ 7:54 PM
naw, it is the illuminati behind it all

:) (Smile)

DMemberHeavyMetalTh...
Date: January 8, 2004 @ 1:11 AM
I agree with John.

"naw, it is the illuminati behind it all"

You never know. :-) (Smile)
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