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

Key-United Expands Sales Leadership Team with New Hires
Rosanne Tipton and Robbie Eisen
Rosanne Tipton and Robbie Eisen
Key-United, a joint venture between Key Networks and United Stations Radio Networks (USRN), has expanded its sales organization with two new appointments aimed at strengthening its service to advertisers and agency partners. Rosanne Tipton has joined the company as More

Nicole Alvarez Takes Midday Slot at Alt 98.7 Los Angeles
Nicole Alvarez (photo credit: iHeartMedia)
Nicole Alvarez (photo credit: iHeartMedia)
iHeartMedia's KYSR-FM (Alt 98.7) in Los Angeles has named Nicole Alvarez as the station's new midday host, effective March 2. Alvarez joined Alt 98.7 in December and now moves into the 10am-2pm shift as part of a revamped weekday lineup. A Los Angeles radio veteran with more than two decades of More

Chaz & AJ Return to Long Island on 94.3 The Shark
Chaz & AJ
Chaz & AJ
Connoisseur Media has announced that the Chaz and AJ Show will expand its reach and return to Long Island mornings on WWSK (94.3 The Shark) beginning Monday, March 9. The move reunites the long-running rock morning show with the market where the partnership first began, while the More
Advertisement

NAB Launches Campaign for America's 250th Anniversary
National Association of Broadcasters (NAB)
National Association of Broadcasters (NAB)
As the U.S. prepares to mark the 250th anniversary of the signing of the Declaration of Independence, the National Association of Broadcasters (NAB) has launched a nationwide, year-long campaign highlighting the role of local radio and television stations in documenting history and connecting communities. More

Curtis Sliwa Joins WOR Morning Lineup in New York
Curtis Sliwa
Curtis Sliwa
Curtis Sliwa is returning to New York talk radio as part of a new morning show on iHeartMedia's 710 WOR, beginning Monday, March 9. "Curtis Sliwa and Larry Mendte in the Morning" will air weekdays from 6-10am, pairing Sliwa's longtime presence in New York talk radio with veteran television journalist Larry More

Tom Donahue's Truth Matters Shifts to Streaming
Tom Donahue
Tom Donahue
Veteran talk host Tom Donahue will begin hosting Truth Matters with a new distribution model starting April 4, transitioning the program from Salem Radio Network's satellite delivery to online streaming and podcast-based audio file distribution for radio stations. The show will continue to air Saturdays 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