The FCC released a statement today, announcing that after an investigation into iHeart Media to find out if the company was in compliance with federal rules around “payola” practices, iHeart has entered into a consent decree with the Commission and the investigation has been resolved.
The investigation from the FCC’s Enforcement Bureau began in January when Senator Marsha Blackburn claimed that iHeart was engaging in a 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.
The FCC says that the practice is known as “payola” and involves a company pressuring artists to perform at shows for free or a deeply reduced rate, with the understanding that if the artist declines, the consequence is that the company-owned radio stations give the artist less air time. iHeart Radio is the largest owner of radio stations in the U.S. and is known for hosting music events. If true, Senator Blackburn’s claim would mean that artists would see a huge impact to their exposure if they refuse to play the live events for free.
The FCC sent a letter in February, requesting information to determine if iHeart has been adhering to the payola rules, specifically citing the company’s iHeart Country Festival in May 2025. iHeart responded, saying that artists performed at the event “for the promotional value, not for additional airplay on Company Stations.” Several letters were sent back and forth, with the FCC asking for additional information and iHeart maintaining that it was abiding by the rules.
In the end, iHeart agreed to assign a compliance contact that will respond to FCC inquiries and prove that the company is taking additional steps to ensure that it’s not committing payola violations. Those steps include annual reporting, creating a compliance manual for employees, and setting up a hotline for employees to report potential violations.
FCC Chairman Brendan Carr issued the following statement: “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.”