The largest owner of radio stations in the U.S., iHeartMedia, agreed to enter into a consent decree with the FCC to settle a probe launched last year into its compliance with federal rules prohibiting a form of payola dubbed “showola.” The FCC says this practice involves radio stations pressuring artists to perform at station-hosted music shows or festivals for free or for reduced payment “in exchange for more favorable airtime for their songs.”
By entering into the consent decree, iHeartMedia “makes no admission of liability or violation of any law, regulation or policy.” The company is not paying any fines and has denied engaging in showola practices.
Under the agreement, iHeartMedia will develop and implement “rigorous reporting and disclosure procedures to provide the FCC with additional insight into the relationship between spins on air and performances at live events — ensuring no prohibited pressure or relationships.” The FCC specifically looked at whether iHeartMedia improperly pressured artists to perform without payment at events like the 2025 iHeartCountry Music Festival in Austin, Texas.
An iHeartMedia spokesperson stated that their live music events provide unique opportunities to performing artists, adding, “iHeart does not promise artists additional airplay if they perform at an iHeart live music event, or less airplay if they decline an invitation.” The spokesperson said they appreciated the opportunity to work with Chairman Carr and his staff to develop industry-leading approaches to ensure continued compliance.
The probe began after Sen. Marsha Blackburn (D-Tenn.) alerted the FCC of a potential new payola practice. FCC Chairman Brendan Carr stated, “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.”
Under the consent decree, iHeart will commit to “enforcing reasonable standards with respect to the Sponsorship Identification Laws in connection with Company Performance Events to avoid violations and the appearance of impropriety in the Company’s music programming.” The company must develop a compliance checklist for employees and maintain a direct-dial line and email account for reporting potential violations.
A copy of the iHeartMedia consent decree with the FCC is available at this link (https://docs.fcc.gov/public/attachments/DA-26-XXXXA1.pdf). Artists can report suspected violations to payola@fcc.gov.
Source: Variety