Labels, publishers, and radio programmers must closely monitor iHeartMedia’s new three-year compliance plan, which mandates unprecedented transparency around live event bookings following the FCC’s closure of a payola investigation without a fine or finding of wrongdoing. This settlement directly impacts how Black music and urban radio stakeholders negotiate festival appearances, ensuring artists receive clear written disclosures that their airplay will not be conditioned on performing at company-sponsored concerts.
Settlement Ends Probe Without Penalty
The Federal Communications Commission concluded its investigation into iHeartMedia’s festival booking practices after the broadcaster agreed to a consent decree imposing new transparency and reporting requirements aimed at preventing so-called “showola” in the radio industry. The agreement, released Thursday by the Enforcement Bureau, resolves an inquiry launched last year into whether iHeart complied with federal sponsorship identification laws amid allegations that artists could receive additional radio airplay in exchange for performing at company-sponsored events without required disclosures. iHeartMedia maintains that artist participation at its events has no bearing on station airplay and does not admit violating any law under the settlement. The FCC dismissed pending third-party complaints and confirmed it will not question iHeart’s qualifications to hold broadcast licenses.
New Disclosures Protect Artist Rights
Under the three-year compliance plan, iHeart will appoint a corporate compliance officer, establish new operating procedures, publish a compliance manual, and conduct mandatory annual training for programming and artist-relations employees. The company must notify every artist invited to perform that accepting or declining the invitation will not affect airplay on stations and that suspected payola violations may be reported directly to the FCC. Enhanced public disclosures for major events like the iHeartRadio Music Festival, Jingle Ball Tour, and iHeartCountry Festival will identify participating artists, explain that increased airplay may naturally occur around events, and disclose when artists or representatives contribute to performance costs. Music stations must periodically direct listeners to these online disclosures, which also clarify that any airplay provided pursuant to an agreement must comply with federal sponsorship identification laws.
The compliance reports filed over the next three years will include data on participating artists, whether they were paid to perform, and how much airplay they received during the three months before and after each qualifying event. FCC Chair Brendan Carr stated the agreement adds significant new protections to ensure artists retain their right to decide when and where they perform. This investigation stemmed from concerns raised by Senator Marsha Blackburn regarding broadcasters conditioning airplay on artists agreeing to perform at station-sponsored events for little or no compensation.
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