iHeart & FCC Agree On Consent Decree
• The FCC on Thursday announced that iHeartMedia, Inc. has agreed to enter into a consent decree with the agency. The agreement resolves an investigation the FCC’s Enforcement Bureau launched last year into iHeartMedia’s compliance with federal rules that prohibit a practice known as payola.
As the FCC’s press release reads, “One form of payola, sometimes called ‘showola,’ involves a radio station pressuring artists to perform at station hosted music shows or festivals for free or for reduced compensation in exchange for more favorable airtime for their songs. iHeartMedia is the largest owner of radio stations in the United States and hosts live events and festivals around the country, including ones that feature artists that get airtime on iHeart stations. This agreement implements rigorous reporting and disclosure procedures to provide the Commission with additional insight into the relationship between spins on air and performances at live events — ensuring no prohibited pressure or relationships.”
The consent decree document reads, in part, “In the absence of material new evidence relating to this matter, we do not set for hearing the question of iHeart’s basic qualifications to hold or obtain any Commission license or authorization. It is further ordered that the above-captioned matter IS TERMINATED. It is further ordered that any third-party complaints and allegations against iHeart and/or its stations related to the above-captioned investigation that are pending before the Bureau as of the date of this Consent Decree ARE DISMISSED.”
Afterward, FCC Chairman Brendan Carr issued the following statement: “The FCC is committed to ensuring that artists — especially up-and-coming ones — get a fair shake in their dealings with the broadcast industry. Artists’ talent and the listening public should determine their success. Today’s agreement adds significant new protections and offers the FCC greater transparency to ensure that artists retain their right to decide when and where they will perform. Artists have every right to ensure that the radio industry complies with the payola and showola regulations that protect them.”
• RAMP reached out to iHeartMedia, which issued this statement: “We have appreciated the recent opportunity to engage with the FCC on their questions about our live music events, including matters relating to artist appearances. As we have consistently noted, iHeart’s industry-leading live music events provide unique opportunities and value to performing artists by enabling them to reach their broad and engaged audiences and to enhance their careers. And as we have also noted, iHeart does not promise artists additional airplay if they perform at an iHeart live music event, or less airplay if they decline an invitation.”
The statement continues, “We take our compliance with the Sponsorship Identification Laws very seriously. We already have practices and procedures in place to address them, and we appreciated the opportunity to work with Chairman Carr and his staff to develop industry-leading approaches to augment our existing procedures to ensure continued compliance in connection with our live events. We were pleased to reach this resolution and thank the Chairman and his staff for their time, focus and commitment.”
The entire text of the consent decree can be viewed HERE.
