iHM Responds to FCC Inquiry on iHeartCountry Festival

RADIO ONLINE | Wednesday, February 26, 2025 | 3:55pm CT

iHeartMedia

iHeartMedia has issued a response to the Federal Communications Commission (FCC) following an inquiry into potential payola violations linked to its upcoming iHeartCountry Festival. The company denied any improper influence over radio airplay and asserted that participation in its events is not tied to station programming decisions.

"We appreciate FCC Chairman Carr's interest in ensuring the radio industry is compliant with all applicable laws and regulations and will be responding expeditiously to the specific questions posed in the Chairman's letter about iHeart's upcoming Country Festival," the company said in a statement.

The response follows a letter from FCC Chairman Brendan Carr, which requested details regarding artist compensation and whether airplay is affected by participation in the event. The FCC had previously issued an Enforcement Advisory, warning that manipulating airplay based on artist involvement in station-sponsored events could violate federal laws.

Addressing these concerns, iHeartMedia stated, "We look forward to demonstrating to the Commission how performing at the iHeartCountry Festival - or declining to do so - has no bearing on our stations' airplay, and we do not make any overt or covert agreements about airplay with artists performing at our events."

The company emphasized that the iHeartCountry Festival operates similarly to other promotional platforms in the entertainment industry. "The event provides the same kind of promotion that we see with artists on talk shows, late night television, the Super Bowl and in digital music performances and events: the promotional value to the artists is the event itself, and, in our case, is unrelated to our radio airplay."

The company also noted that many artists voluntarily seek to participate in the festival, some making repeat appearances due to the exposure it provides. "We're very proud that over the years we've had artists ask us to be a part of the iHeartCountry Festival, and in fact, we've had artists make repeat appearances over the years because it is an important event that enables them to reach our audiences and enhance their careers."

The FCC's inquiry, announced earlier this week, seeks to determine whether iHeartMedia exerts pressure on artists to perform for little or no compensation in exchange for increased airplay. The agency has requested detailed information on iHeartMedia's internal policies regarding payola compliance, compensation practices, and how it has communicated the recent advisory to its personnel.

Federal payola laws, outlined in the Communications Act of 1934, prohibit undisclosed financial arrangements that influence radio programming decisions. Violations can result in significant fines or criminal penalties.

iHeartMedia was given 10 days to formally respond to the FCC's inquiry, and the outcome of the investigation could have significant implications for radio broadcasting practices nationwide.