iHeartMedia has entered into a Consent Decree with the FCC over alleged payola practices.
The Commission states that Senator Marsha Blackburn had alerted the FCC in January 2025 of “a potential new payola practice where “radio stations and networks offer more airtime for an artist’s songs if the artist performs a free show with an implicit suggestion that declining to perform could result in reduced airplay” alleging deals made in conjunction with many of iHeart’s events such as the iHeartRadio Music Festival and Jingle Ball tours.
Following an advisory to all broadcasters regarding “payola in connection with the covert manipulation of radio airplay by a broadcast station licensee or broadcast station personnel based on an artist’s agreement to participate in a broadcast station’s promotion or event, often without receiving compensation or expense reimbursement for the appearance” to ensure that stations “that report to record charting services to demonstrate greater diligence to prevent improper conduct by its principals and employees than would a station with an all-news format.” The advisory cautioned licensees to avoid agreements that covertly increase the amount of airplay based on an artist’s performance or appearance at a station’s promotion or event.
FCC Chairman Brendan Carr followed with a letter to iHeart CEO Bob Pittman inquiring how the company planned to ensure the 2025 iHeartCountry Festival will comply with federal payola requirements. iHeart’s responses said that artists performed at iHeart events for the promotional value, not for additional airplay and restated that it did not trade airplay for performances.
As part of the Consent Decree there is no acknowledgement of wrongdoing as iHeart stated it had policies and procedures to deter employees from engaging in conduct that violates the Sponsorship Identification Law, but was willing to augment its practices to reinforce the
effectiveness of their efforts. The FCC and iHeart acknowledged that any proceedings that might result from continuation of an investigation would be time-consuming and would require substantial expenditure of public and private resources so in order to conserve such resources, to ensure ongoing compliance by the Company with the Sponsorship Identification Laws, and to enhance compliance in the broadcasting and music industries, they entered into the consent decree.
In a press statement Carr commented, “The FCC is committed to ensuring that artists especially up-and-coming ones—get a fair shake in their dealings with the broadcast industry. Artists’ talent and the listening public should determine their success. Today’s agreement adds significant new protections and offers the FCC greater transparency to ensure that artists retain their right to decide when and where they will perform. Artists have every right to ensure that the radio industry complies with the payola and showola regulations that protect them.”
INSTANT INSIGHT:The FCC was unable to come up with any proof of payola at iHeart’s events, but iHeart needed to avoid a long-drawn out investigation. So the consent decree allows the FCC to claim some semblance of victory in the matter.
