FCC Chairman Brendon Carr is asking iHeartMedia Chairman and CEO Bob Pittman for details regarding the upcoming 2025 iHeartCountry Festival.
In a recent letter, Carr asked for details about how iHeartMedia organizes events like this and how it ensures compliance with federal payola laws.
Carr’s inquiry follows an FCC advisory earlier this year regarding sponsorship identification rules and “covert manipulation” of airplay in exchange for promotion or artist performances.”
Carr has reportedly inquired directly with Pittman, seeking clarification on several points, including the lineup of artists slated to perform, the compensation they may receive, and the potential impact of their participation on airplay.
Additionally, he is asking about iHeartMedia’s Payola policies, including staff training to ensure compliance with the law and the company’s response to the recent advisory.
The advisory called attention to a trend in the radio industry. It indicated that some stations may exert pressure on artists to perform at events, such as festivals, without compensation or at significantly reduced rates. In exchange, these stations may offer increased airplay, a practice that risks violating federal law if not adequately disclosed.
Senator Marsh Blackburn (R-TN) recently called for the FCC to investigate a possible quid pro quo between record labels and radio stations. (BMM 2/4)
In her filing, Blackburn wrote, “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.”’
Pittman was given ten days to respond.
The iHeartCountry Festival is set for May 3 in Austin.
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