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

Jim Lyke Returns to SBS as AIRE Executive VP
Jim Lyke
Jim Lyke
Spanish Broadcasting System has appointed Jim Lyke as Executive Vice President of Network Radio and National Digital Sales for AIRE Radio Networks, marking his return to the company nearly a year after departing for a role at Nueva Network. Lyke previously served as Senior Vice President of Network Audio More

Report: Black Buying Power to Top $2.1 Trillion in 2026
Katz Radio Group
Katz Radio Group
Black Americans now account for 49.2 million people, or 14.4% of the U.S. population, and their economic influence continues to grow, according to a new analysis from the Katz Radio Insights & Analytics team. The report, The Importance of the Black American Consumer 2026, More

iHeartRadio Named Media Partner of iFlag
iFlag and iHeartRadio
iFlag and iHeartRadio
The International Flag League (iFlag), formerly known as USA Flag and billed as the world's largest flag football tournament organization, has named iHeartRadio as its official media partner. Under the agreement, iFlag will work with iHeartRadio and its parent company iHeartMedia on a cross-marketing More
Advertisement

BIA, AdApt Partner on AI Sales Platform
AdApt and BIA Advisory Services
AdApt and BIA Advisory Services
BIA Advisory Services and AdApt Media Sales have announced a strategic partnership to integrate local advertising market data into sales technology used by media organizations. Under the agreement, AdApt will incorporate BIA's market-specific revenue forecasts into its AI-enabled sales platform. The More

FCC Seeks Comment on Sports Broadcasting Landscape
Federal Communications Commission (FCC)
Federal Communications Commission (FCC)
The Federal Communications Commission's Media Bureau has opened a new proceeding to examine the evolving sports broadcasting marketplace, citing concerns about consumer access and the impact on local television stations. In a Public Notice released February 25, the Bureau is seeking public comment on how More

Black Effect Fest to Return to Atlanta on April 25
Black Effect Podcast Festival
Black Effect Podcast Festival
iHeartMedia and Charlamagne Tha God have announced the return of the Black Effect Podcast Festival, set for April 25 from noon to 8pm ET at Pullman Yards in Atlanta. Now in its fourth year, the event will bring together Black podcasters, creators and fans for a full day of live podcast tapings, panel 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