FCC Payola Inquiry Targets iHeartCountry Fest
• UPDATED: Brendan Carr, President Trump’s recently appointed FCC Chairman, is apparently on a mission to root out what he believes to be issues of payola in the radio concert industry.
As his first order of business, Carr (left) has set his sights on the upcoming iHeartCountry Festival in Austin, sending a detailed letter to iHeartMedia Chairman & CEO Bob Pittman listing his concerns, stating, “As iHeart finalizes its approach to this particular music festival, I want to ensure that it does so in a way that complies with federal payola requirements.”
Carr’s letter reads, in part, “The FCC’s Enforcement Bureau recently issued an Enforcement Advisory regarding a concerning trend in the radio industry. In particular, it appears 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. When unreported, these schemes can violate federal ‘payola’ laws.
The FCC is continuing to focus its enforcement efforts on the issues addressed in the Enforcement Advisory. To the extent that radio industry executives believe that the FCC has looked the other way on ‘payola’ violations in recent years, I want to assure you that this FCC will not be doing that.
It is within this context that I am writing you today. Specifically, it has come to my attention that the iHeartCountry Festival ’25 will be held in Austin, Texas, on May 3, 2025. As iHeart finalizes its approach to this particular music festival, I want to ensure that it does so in a way that complies with federal payola requirements.
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.”
Carr’s letter includes eight specific questions for Pittman regarding how iHeart operates this annual event, asking for a list of performers, how they are being compensated, and if they are receiving favorable airplay in exchange for their performance. Question No. 5: “Please provide a list of any musicians, artists, or acts that were invited to appear or perform at the Festival but declined to do so. To the extent you have such information, please indicate why they declined to appear.”
Carr has given Pittman ten days to respond to his inquiry. The full text of Carr’s letter is posted HERE.
• Late yesterday, iHeartMedia issued a response to Carr’s letter, which reads: “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.”
