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

John Terrett to Host Red Apple AM/PM Market Reports
Red Apple Audio Networks
Red Apple Audio Networks
Financial and business analyst John Terrett has been named host of the new Red Apple AM/PM Market Reports, a pair of weekday features delivering concise market analysis during morning and afternoon drive times. Airing Monday through Friday, the twice-daily More

Truth Matters With Donahue & Marie to Launch
Truth Matters with Tom Donahue & Angeline Marie
Truth Matters with Tom Donahue & Angeline Marie
A new talk program, Truth Matters with Tom Donahue & Angeline Marie, will debut on Saturday, January 17, with national distribution via Salem Radio Network. The weekly show will air Saturdays from 9-10pm ET, with a rebroadcast Sundays from 1-2am ET, on the Westwood One Wegener platform (SRN4 - Truth More

Study: Audio Creators Drive Trust, Influence, and Sales
Audacy
Audacy
A new report finds that radio and podcast hosts are playing an increasingly central role in the creator economy, with trust and authenticity driving stronger engagement and measurable results for advertisers. The State of Audio: The Creator Effect study from Audacy positions audio creators as More
Advertisement

San Diego Radio Icon Jerry Cesak Dies at 74
Jerry Cesak
Jerry Cesak
Jerry Cesak, the longtime San Diego air personality best known as "Jer" from the Jeff & Jer Showgram, died January 4, 2026, at age 74. He passed away peacefully with his wife, Pam, at his side. Born in Maryland, Cesak earned a theater degree from the University of Maryland before beginning what he More

Audacy Names Podscribe Preferred Measurement Partner
Podscribe
Podscribe
Audacy has named Podscribe as a preferred measurement partner beginning in 2026, expanding attribution and reporting capabilities across most of Audacy's digital portfolio. Under the agreement, Podscribe will enable attribution across streaming audio, podcasting, connected TV, and display, supported by More

Podtrac Releases December 2025 Podcast Rankings
Podtrac
Podtrac
Podtrac has released its Top U.S. and Global Podcast Publishers & Networks rankings, along with its Top U.S. Podcasts list for December 2025, offering a snapshot of audience and download performance heading into the end of the year. In the U.S. Publishers & Networks rankings, iHeart Audience Network 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