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

Rod Day Named Market Manager for Connoisseur Alaska
Rod Day
Rod Day
Connoisseur Media has appointed Rod Day as Market Manager for its Alaska properties, effective immediately. Day returns to Anchorage with more than two decades of experience in audio, management and market development. His background includes roles ranging from founder and CEO to multi-market general More

Civic Media Appoints Chuck Sullivan as Regional MM
Chuck Sullivan
Chuck Sullivan
Civic Media has named veteran broadcaster Chuck Sullivan as Regional Market Manager, based in Eau Claire, WI. Sullivan brings extensive experience in Wisconsin radio, having spent seven years with Audacy as Senior Vice President and Market Manager for Milwaukee and Madison. His career also includes More

Civic Media Expands Northern Wisconsin Coverage
Civic Media
Civic Media
Civic Media has changed the format of Oldies WLAK-FM (W298DK 107.5) Amery, WI, flipping the station from News/Talk to a simulcast of WSCM (St. Croix Country) Baldwin, WI, effective immediately. The move expands the reach of the country format across west-central Wisconsin and More
Advertisement

iHeartRadio to Add Free Video Podcast Distribution in 2026
iHeartRadio
iHeartRadio
iHeartMedia says it will expand its "Creators First" initiative by adding native video podcast distribution to both the app and web versions of iHeartRadio, with the feature set to roll out in early 2026. Under the plan, creators will be able to distribute full-length video episodes directly into More

Stugotz Signs Multiplatform Deal with iHeartMedia
Jon Stugotz Weiner
Jon Stugotz Weiner
iHeartMedia and veteran sports media personality Jon "Stugotz" Weiner have entered into a long-term, multiplatform partnership that includes a new weekday afternoon program on FOX Sports Radio. Beginning in January, Stugotz will host a live show airing weekdays from 3-5pm ET, originating from iHeartMedia's More

Alvarez Returns to LA Radio With Alt 98.7 Holiday Fill-In
Nicole Alvarez
Nicole Alvarez
iHeartMedia's KYSR (Alt 98.7) Los Angeles has added longtime Southern California radio personality Nicole Alvarez to its on-air lineup on a fill-in basis over the holidays, with plans for her to remain part of the station's staff going forward. Alvarez will fill in for Christen Limon in the midday slot 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