The FCC is investigating iHeartMedia, alleging that the company may be engaging in payola practices by compelling artists to perform at events for reduced fees in exchange for airplay. In a letter to CEO Robert Pittman, FCC Chairman Brendan Carr raised concerns regarding compliance with federal payola laws, specifically regarding the upcoming iHeartCountry Festival. iHeartMedia denied these allegations, asserting that participation in its events does not impact airplay decisions. The company has been given a short period to respond to the FCC's inquiries, highlighting ongoing scrutiny in the radio industry regarding fair compensation practices.
In a letter to iHeartMedia CEO Robert Pittman, FCC chairman Brendan Carr alleged that "certain owners of federally licensed radio stations are effectively compelling musicians to perform at radio station events or festivals for free (or for reduced compensation) in exchange for more favorable airplay."
US law stipulates that any payments made to a radio station to influence airplay must be disclosed as sponsored content. If artists are trading appearances for airtime without such disclosure, the arrangement could be deemed illegal.
"As iHeart finalizes its approach to this particular music festival, I want to ensure that it does so in a way that complies with federal payola requirements," Carr wrote.
The iHeartCountry Festival provides the same kind of promotion that we see with artists on talk shows, late night television, and other industry events, and it does not affect airplay.
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