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

Warm 98.5 Rings In Season With Christmas Music Flip
WRRM-FM (Warm 98.5) in Cincinnati
WRRM-FM (Warm 98.5) in Cincinnati
Cumulus Media's WRRM-FM (Warm 98.5) in Cincinnati has officially ushered in the holiday season, flipping to continuous Christmas music at 4:45pm on Friday. The station marked the annual switch with Andy Williams' classic "It's the Most Wonderful Time of the Year," launching its More

Danny Gonzalez Named 2026 Radio Mercury Chief Judge
Danny Gonzalez
Danny Gonzalez
The Radio Mercury Awards has selected Danny Gonzalez, co-chief creative officer and co-founder of Bandits & Friends, as the 2026 chief judge for the 35th annual competition. Gonzalez brings two decades of creative leadership to the role, known for transforming everyday ideas into memorable storytelling More

MediaCo Reports Strong Q3 Revenue Gains
MediaCo
MediaCo
MediaCo Holding Inc., owner of WQHT (Hot 97) and WBLS/New York, posted higher revenues and a return to positive adjusted EBITDA in the third quarter of 2025, driven by gains from the April 2024 Estrella acquisition and continued growth across its audio, video, and digital businesses. More
Advertisement

Edison Research to Present New TikTok Usage Report
Edison Research
Edison Research
Edison Research will unveil new findings about how Americans use TikTok during a webinar on Wednesday, December 3 at 2pm ET. The presentation, The Infinite Scroll: A TikTok Report, draws on a comprehensive set of original research examining the behaviors and opinions of U.S. TikTok users age 13 and older. More

WRXS Launches 'WRXS-mas' with Classic Holiday Hits
WRXS-FM (Pure Oldies 106.9) Milwaukee
WRXS-FM (Pure Oldies 106.9) Milwaukee
Milwaukee's WRXS-FM (Pure Oldies 106.9) is ringing in the season with WRXS-mas, a switch to traditional, nostalgia-filled Christmas music that begins today and continues non-stop through Christmas Day -- and even a bit beyond. The Oldies outlet is promising a warm, familiar holiday soundtrack built on More

SportsTalk 790 Launches ''Morning Drive with Dan & Cole''
Cole Thompson and Dan Mathews
Cole Thompson and Dan Mathews
iHeartMedia Houston's KBME (SportsTalk 790) is adding a new local team its lineup with the debut of "The Morning Drive with Dan & Cole," launching Monday, November 24. The new live, Houston-focused sports show will air weekdays from 6-10am. Hosted by Houston natives Dan 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