Home Login RADIO ONLINE RSS Facebook
Advertisement

FCC Investigates iHeartMedia Over Potential Payola Violations


Federal Communications Commission
Federal Communications Commission

The FCC has issued a formal inquiry into iHeartMedia regarding potential payola violations tied to the upcoming iHeartCountry Festival 2025, scheduled for May 3 in Austin, TX. The agency's Enforcement Bureau is investigating concerns that musicians may be compelled to perform at the festival for little or no compensation in exchange for more favorable radio airplay.

In a letter addressed to iHeartMedia Chairman and CEO Robert Pittman, FCC Chairman Brendan Carr underscored the importance of compliance with federal sponsorship identification requirements and payola laws. The letter follows an FCC Enforcement Advisory issued earlier this month, which warned against radio broadcasters engaging in undisclosed arrangements that link artist performances at promotional events to increased airplay.

The FCC's letter raises several key concerns, including whether iHeartMedia is pressuring artists to choose between receiving their standard performance fees or risking diminished radio exposure. Carr specifically requested detailed information regarding artist compensation, the usual industry rates for similar performances, and whether radio airplay decisions are influenced by participation in the festival.

Additionally, the FCC is seeking insight into iHeartMedia's internal policies on payola, its compliance training efforts, and whether it has communicated the Enforcement Advisory to its stations and personnel. The company has been given 10 days to provide responses to a series of detailed questions.

Payola refers to the undisclosed practice of providing compensation or other incentives in exchange for favorable radio airplay. Such schemes violate both the United States Criminal Code and the Communications Act of 1934, which require broadcasters to disclose any financial arrangements affecting programming content. The FCC's Enforcement Advisory reiterated that failure to report such arrangements can result in severe penalties, including fines and imprisonment.

According to the advisory, broadcasters must exercise "reasonable diligence" in ensuring compliance, particularly those with music-driven formats that report to industry charting services. Stations that fail to meet these legal obligations may face regulatory sanctions, including monetary forfeitures.

The investigation underscores the broader conversation about fairness in the music industry and the influence of major broadcasters on artist exposure.

Advertisement

Latest Radio Stories

2025 Radio Mercury Awards Finalists Announced
Radio Mercury Awards
Radio Mercury Awards
The Radio Mercury Awards has revealed the 107 spots and campaigns that have advanced to the final round of this year's competition, representing a diverse mix of entries from advertising agencies, audio companies, brands, production houses, radio stations, and students. The 2025 More

DJ Neko Returns to 92.5 Maxima as PD and Afternoon Host
DJ Neko
DJ Neko
Beasley Media Group has announced the return of DJ Neko to WYUU-FM (92.5 Maxima) in Tampa, where he will serve as Program Director and afternoon drive host, effective immediately. Neko, a familiar voice in the Tampa market, previously worked at Maxima from 2010 to 2018 during the station's CBS Radio era. His More

RAB Urges Marketers to Reconsider Radio's Role in Media Mix
Radio Advertising Bureau (RAB)
Radio Advertising Bureau (RAB)
The Radio Advertising Bureau (RAB) is challenging long-held misconceptions about AM/FM radio's relevance and effectiveness in modern media strategies. In a new article for the Association of National Advertisers (ANA), RAB Senior Vice President of Business Development Tammy Greenberg lays out a data-driven More
Advertisement

Kansas City Monarchs Name The Bet KC as Flagship Station
Kansas City Monarchs
Kansas City Monarchs
The Kansas City Monarchs ink a new radio partnership with Audacy's KWOD-AM (The Bet KC), which will serve as the team's flagship station for the 2025 season. Under the agreement, The Bet KC will broadcast all of the Monarchs' away games, beginning Friday, May 16 at 7pm CT when the team faces off against More

NABOB Podcast Network Debuts with Black Voices & Stories
NABOB Podcast Network
NABOB Podcast Network
The National Association of Black Owned Broadcasters (NABOB), in partnership with USBC Media, has officially launched the NABOB Podcast Network, a new audio platform designed to amplify Black voices across a wide spectrum of topics and experiences. Billed as a destination for "bold conversations, More

Faith Radio Expands to Boise with Acquisition of KBXL
Faith Radio
Faith Radio
Northwestern Media is expanding its reach with the planned acquisition of KBXL-FM (94.1) in Caldwell, ID, bringing its Faith Radio Network to the Boise market. The agreement, filed as an asset purchase, will see KBXL begin broadcasting Faith Radio's Christ-centered programming, which includes conversations More

Return to Menu

Advertisement

Subscribe to our Newsletter
Radio news and headlines delivered right to your e-mail box -- and it's free.

Advertisement

Advertisement