FCC Investigates iHeartMedia Over Possible Payola Violations

AUSTIN, Texas — The Federal Communications Commission (FCC) is investigating iHeartMedia regarding potential violations related to artist compensation at its upcoming country festival. The inquiry raises concerns about whether artists are being coerced into performing for reduced pay in exchange for favorable airplay on iHeart stations.

FCC Chairman Brendan Carr expressed his concerns in a letter to iHeartMedia CEO Robert Pittman on Monday. He emphasized the importance of transparency regarding payments or other compensations tied to programming, as mandated by the FCC’s ‘payola’ regulations.

“I want to know whether iHeart is effectively and secretly forcing musicians to choose between receiving their usual compensation for performing or receiving less favorable airplay on iHeart radio stations,” Carr stated.

In response, iHeartMedia asserted its commitment to compliance and stated that performing at the iHeartCountry Festival does not influence airplay on its stations. The festival is set to take place on May 3 in Austin, featuring notable acts such as Brooks & Dunn, Thomas Rhett, and Sam Hunt.

iHeartMedia highlighted that the promotional value for artists stems from their participation in such events, akin to appearances on talk shows or major televised events, and is independent of radio airplay.

The FCC is seeking information about the solicitation and compensation of artists, including their scheduled performances and any financial agreements involved. Specifically, the FCC wants to know how participation in the festival might affect artists’ airplay and any incentives offered to them.

The inquiry forms part of a broader initiative by the FCC to ensure compliance within the radio industry. In his letter, Carr referenced an enforcement advisory issued earlier this month emphasizing that manipulating airplay based on event participation without proper disclosure is a violation of federal law.

“To the extent that radio industry executives believe that the FCC has looked the other way on ‘payola’ violations in recent years, I want to assure you that this FCC will not be doing that,” Carr added.

In addition to the inquiry into iHeartMedia, Carr has ordered investigations into NPR and PBS for potential sponsorship recognition violations and has also asserted authority over parts of Paramount’s merger with Skydance related to broadcast license transfers.

iHeartMedia has until March 7 to respond to the FCC’s letter. The company expressed its eagerness to demonstrate its compliance and commitment to radio industry regulations.