WASHINGTON D.C. (CelebrityAccess) — The Federal Communications Commission has launched an inquiry into iHeartMedia over concerns that the radio and entertainment conglomerate is compelling musicians to perform at music festivals or promotional events in exchange for an airplay boost in violation of federal ‘payola’ laws.
In a letter sent to iHeartMedia CEO Robert Pittman, FCC Commissioner Brenda Carr requested information on upcoming scheduled live performances, including artist compensation.
The letter also inquired if an artist’s participation in iHeartMedia events would impact their airplay and how such information was conveyed to potential performers.
The inquiry also seeks information about iHeartRadio’s corporate policy regarding payola and its sponsorship identification obligations and how it shares information about enforcement advisory with its company personnel and licensees.
“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. Indeed, I want 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,” Commissioner Carr wrote in the letter.
“This upcoming iHeart event provides the Commission with 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 regarding sponsorship identification and to ensure that the concerns raised in the Enforcement Advisory are being appropriately addressed,” Carr added.
The launch of the inquiry follows an enforcement advisory earlier this month, warning stations of manipulating airplay to foster artist participation in promotional events is a violation of federal law.
The issue came to the fore after Sen. Marsha Blackburn, R-Tenn wrote a letter to the FCC to ‘sound the alarm’ about what she perceived as “the exploitative practice of radio stations and networks offering an artist more airtime in exchange for performing a free show.”
“I am writing to bring attention to an issue critically impacting Tennessee’s content creators, particularly its songwriters and music community. Federal law prohibits radio stations from accepting payment for airtime without disclosing the transaction—a practice commonly known as ‘payola.’ As you know, the FCC considers payola a violation of the Sponsorship Identification Rules. From what we have learned, it appears that to sidestep these restrictions, radio stations and networks have adopted a troubling new tactic. Instead of demanding cash or lavish perks from record labels in exchange for airplay, they now pressure artists to perform ‘free radio shows’ —also referred to as ‘listener appreciation shows’ or ‘charitable concert events.’” Sen. Blackburn wrote in her January 31st letter to the FCC.
A spokesman for iHeart responded with a statement that we have reproduced here in full:
We appreciate FCC Chairman Carr’s interest in ensuring the radio industry is compliant with all applicable laws and regulations and will be responding expeditiously to the specific questions posed in the Chairman’s letter about iHeart’s upcoming Country Festival.
The Commission’s recent Enforcement Advisory to the radio industry as a whole stated that manipulating airplay based on artist participation in station events without proper disclosure violates federal laws.
We look 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 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. We’re very proud that over the years we’ve had artists ask us to be a part of the iHeartCountry Festival, and in fact we’ve had artists make repeat appearances over the years because it is an important event that enables them to reach our audiences and enhance their careers.
See the full text of the FCC’s letter to Robert Pittman here: https://docs.fcc.gov/public/attachments/DOC-409718A1.pdf
