Federal regulators have officially closed their investigation into iHeartMedia’s radio promotion practices after the company reached a settlement with the Federal Communications Commission.
As first reported by Variety, iHeartMedia entered into a consent decree with the FCC, resolving an investigation into whether the company violated federal payola rules through alleged “showola” practices. The probe examined whether some iHeart radio stations improperly encouraged or pressured artists to perform at iHeartRadio concerts and events for free or at reduced rates in exchange for favorable radio airplay.
The FCC’s longstanding payola rules prohibit broadcasters from accepting or providing undisclosed consideration in exchange for airing music or other programming. In this case, regulators were investigating whether live performance opportunities were improperly linked to airplay without the required transparency. Under the terms of the agreement, iHeartMedia did not admit to any wrongdoing or liability, and the consent decree brings the FCC’s investigation to a close. “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 company said in a statement.
As part of the settlement, iHeartMedia agreed to implement a series of enhanced compliance measures designed to strengthen its internal policies surrounding music programming and artist relations. Those changes include updated employee training, expanded recordkeeping requirements, compliance monitoring, and regular reporting to the FCC over the coming years.
iHeartMedia said it takes its compliance with federal sponsorship identification laws seriously and appreciated the opportunity to work with FCC Chairman Brendan Carr and his staff to strengthen its existing procedures. The agreement is intended to ensure that programming decisions remain independent of any promotional arrangements and that any sponsorship or consideration connected to broadcasts is properly disclosed in accordance with federal regulations.
The investigation centered specifically on iHeartMedia’s relationships with artists performing at company-sponsored events and should not be confused with other legal disputes or industry controversies involving the broadcaster. By entering into the consent decree, iHeartMedia avoids further litigation over the matter while the FCC concludes its review, closing out an investigation that renewed attention on the music industry’s decades-old payola regulations and how they apply in today’s concert and radio promotion landscape.
