Updated at 4:15pm Eastern on February 26
The FCC has taken its first stab at investigating whether the radio industry is engaged in artist performance policies that do not comply with federal “Payola” regulations. And, it sees the agency’s Chairman send a letter to the CEO of the nation’s largest audio content distribution and creation company about an upcoming country music event.
Brendan Carr, in a letter sent Monday to iHeartMedia CEO Bob Pittman, specifically requested that the company provide detailed information pertaining to artist compensation and airplay policies linked to the upcoming “iHeartCountry Festival 2025.”
Carr’s letter references a recent FCC Enforcement Advisory that warned radio broadcastingi companies against requiring artists to perform at events for free or at a reduced rate in exchange for favorable airplay. “This upcoming iHeart event provides the Commission with a real-world example of how such events are put together — including artist solicitation and compensation — and the procedures that are in place to ensure compliance with the relevant statutes and regulations regarding sponsorship identification and to ensure that the concerns raised in the Enforcement Advisory are being appropriately addressed,” Carr wrote.
Carr also emphasized the FCC’s commitment to enforcing payola laws, stating, “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.”
The inquiry demands iHeart provide a list of confirmed and invited performers for the May 3 festival at the Moody Center in Austin, their compensation details, and typical performance fees outside of the festival. The company must also clarify whether artist participation in the festival influences airplay decisions on its stations.
According to iHeartMedia, performers include Brooks & Dunn, Thomas Rhett, Rascal Flatts, Cole Swindell, Sam Hunt, Megan Moroney, Bailey Zimmerman, and Nate Smith. It is hosted by Premiere Networks syndicated country radio host Bobby Bones.
Additionally, the FCC is seeking information on iHeartMedia’s internal policies and training programs related to sponsorship disclosures and compliance with payola regulations following the Enforcement Advisory. The Advisory stressed licensees must exercise “reasonable diligence” to prevent airplay manipulation, especially those reporting to record charts, and that artists may perform at station events for free if airplay isn’t influenced.
Payola violations can carry fines up to $10,000 and potential jail time.
The company has been given 10 days to respond.
On Wednesday (2/26), iHeartMedia issued a formal statement commenting on the inquiry.
“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. “The Commission’s recent Enforcement Advisory to the radio industry as a whole stated that manipulating airplay based on artist participation in station events without proper disclosure violates federal laws. 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 concluded its statement by noting that the iHeartCountry Festival “provides the same kind of promotion that 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. 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.”
— Additional reporting by Adam R Jacobson
