The Federal Communications Commission (FCC) is scrutinizing iHeartMedia’s upcoming iHeartCountry Festival in Austin as part of an investigation into whether radio stations have been offering airplay to artists in exchange for free shows.
In a lengthy letter sent Monday (Feb. 24) to iHeartMedia chairman/CEO Robert Pittman, FCC chairman Brendan Carr — who was appointed to the FCC board in 2023 by former President Joe Biden and promoted to chairman via an executive order from President Donald Trump on Jan. 21 — said he “want[s] to know whether iHeart is effectively and secretly forcing musicians to choose between, one, receiving their usual, ordinary, and full scale compensation for performing or, two, receiving less favorable airplay on iHeart radio stations.”
Carr went on to note 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,” a practice he warned violated federal bans on practices like payola.
The letter follows a previous letter sent by U.S. Senator Marsha Blackburn (R-Tenn.) to the FCC earlier this month in which she asked the agency to take action to prevent the alleged practice, claiming it was “critically impacting Tennessee’s content creators.” The FCC subsequently issued an enforcement advisory in which it warned that promising radio play in exchange for free concerts would break federal law. The agency further said it would “consider investigating substantive allegations of payola that come to its attention.”
Traditionally, payola investigations have dealt with music labels and publishing groups paying radio stations to illegally promote commercial music and boost album sales. In 1959, popular radio personalities like Alan Freed were investigated by both the U.S. House and Senate for accepting cash “consulting fees” to play songs on the radio as requested by the shadowy radio promotion industry. In the 1970s, the investigation expanded to include the Italian mafia, whom the FCC accused of using drugs like cocaine for payola. In the 1990s, former NY District Attorney Elliot Spitzer won payola settlements against Sony, BMG and Warner Music, and won a civil lawsuit against Entercom.
Carr’s letter to iHeartMedia hints that the federal government may adopt a novel legal theory that radio promotion concerts, held by large FM radio stations in markets across the U.S., could be a form of payola. Specifically, Carr singles out the May 3 iHeartCountry Festival in Austin, Texas.
Carr’s three-page letter to iHeart included eight lengthy questions he asked Pittman to answer within 10 days. Among other things, Pittman is requesting a list of all artists playing iHeartCountry Festival at Austin’s Moody Center, how much they would normally be paid for a concert appearance and whether any of the artists “will receive better or worse airplay on iHeart radio stations based on their participation in the Festival or the compensation they receive for performing at the Festival.”
In the music business, artists’ appearances are typically delineated into two categories: promotional, or media, appearances, when an artist is promoting a new venture like an album or a film and appears on a talk show to promote that project; and paid appearances, when an artist performs or showcases their talents to audience members who have typically paid some type of admission fee. Artists aren’t usually paid for promotional appearances, and radio concerts have long been categorized by radio stations as promotional in nature and typically do not include payments.
Carr continued that he wants to learn more about the upcoming iHeart concert so that he can get “a real-world example of how such events are put together—including artist solicitation and compensation—and the procedures that are in place to ensure compliance with the relevant statutes and regulations.”
Officials with iHeartMedia responded to the letter in a statement, noting that the company looks forward to “demonstrating to the Commission how performing at the iHeartCountry Festival — or declining to do so — has no bearing on our stations’ airplay, and we do not make any overt or covert agreements about airplay with artists performing at our events.”
The iHeart statement goes on to say, “The iHeartCountry Festival provides the same kind of promotion that that we see with artists on talk shows, late night television, the Super Bowl and in digital music performances and events: the promotional value to the artists is the event itself, and, in our case, is unrelated to our radio airplay.”
This lineup at this year’s iHeartCountry Festival lineup, which is slated for May 3, includes Brooks & Dunn, Thomas Rhett, Rascal Flatts, Cole Swindell, Sam Hunt, Megan Moroney, Bailey Zimmerman and Nate Smith.
