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FCC Investigates iHeartMedia Over Potential Payola Violations at Music Festival

The investigation focuses on whether iHeartMedia pressured artists to perform for free or reduced pay in exchange for favorable radio airplay.

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Federal Communication Commission Commissioner Brendan Carr testifies before the House Energy and Commerce Committee's Communications and Technology Subcommittee in the Rayburn House Office Building on Capitol Hill December 05, 2019 in Washington, DC.
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Overview

  • The FCC has launched an inquiry into iHeartMedia's compensation practices for artists performing at its iHeartCountry Festival on May 3 in Austin, Texas.
  • FCC Chairman Brendan Carr questioned if iHeartMedia coerced artists into accepting reduced pay or free performances to avoid unfavorable radio airplay.
  • The investigation centers on potential violations of federal 'payola' laws, which require disclosure of any financial arrangements influencing radio programming.
  • iHeartMedia denied any wrongdoing, claiming that participation in its events does not affect radio airplay and provides promotional value similar to talk shows or televised performances.
  • The FCC has given iHeartMedia 10 days to provide detailed information about artist compensation, internal policies, and compliance with sponsorship disclosure rules.