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FCC Chairman Brendan Carr Probes iHeartMedia Over How it Pays Musicians

FCC Chairman Brendan Carr is putting iHeartMedia on notice, demanding answers about how the company’s upcoming iHeartCountry Festival, set for May 3, 2025, in Austin, Texas, will steer clear of federal payola violations. In a pointed letter to iHeartMedia Chairman and CEO Bob Pittman, Carr seeks detailed insights into artist compensation, airplay incentives, and compliance measures, giving Pittman just ten days to respond. The move, announced yesterday and reported by RadioInsight, underscores Carr’s aggressive push to enforce long-standing rules against covert quid-pro-quo deals in the radio industry—a practice he says has been ignored for too long.

Carr’s inquiry hinges on a recent FCC Enforcement Advisory spotlighting a “concerning trend” where radio stations allegedly pressure artists to perform at events like festivals for free or reduced fees in exchange for favorable airplay—a violation of the U.S. Criminal Code and the Communications Act of 1934. “It would be particularly concerning to me if, on the heels of the FCC’s Enforcement Advisory, iHeart is proceeding in a manner that does not comply with federal ‘payola’ requirements,” Carr wrote. He’s asking Pittman to provide “a real-world example of how such events are put together—including artist solicitation and compensation—and the procedures in place to ensure compliance with the relevant statutes and regulations.”

The letter poses eight specific questions, ranging from a list of confirmed and invited performers to whether their festival participation influences airplay on iHeart’s 850-plus stations. Carr wants to know if artists are “effectively and secretly” forced to choose between full pay and reduced radio exposure, and why some might perform for free. He’s also digging into iHeart’s payola policies, how it shared the Advisory with staff, and what training ensures compliance at the festival—a marquee event that drew 20,000 fans in 2024 and reaches millions via iHeart’s broadcast and streaming platforms.

This isn’t a casual ask. Carr contrasts his approach with what he calls lax oversight under prior administrations, signaling intent with lines like, “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 probe follows Carr’s recent moves to revive bias complaints against broadcasters like CBS, hinting at a broader crackdown on media practices under his Trump-appointed tenure.

Industry reaction is simmering online, with X users split—some praising Carr’s vigilance (“Finally cracking down on radio’s dirty tricks”), others decrying overreach (“Artists should negotiate freely—FCC’s out of line”). iHeartMedia hasn’t responded publicly, but Pittman’s deadline looms by March 7. As the festival lineup firms up—past acts like Blake Shelton and Carrie Underwood set the bar—Carr’s letter casts a shadow, raising stakes for how iHeart balances star power, airplay, and the law in 2025’s country music spotlight.

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