iHeartMedia Commits to New Oversight After FCC Investigation Into Festival-Related Airplay Practices

The Federal Communications Commission has closed an investigation into iHeartMedia over allegations that the radio giant traded favorable airplay for free or reduced-cost performances at company-hosted music festivals. The company entered a consent decree with the FCC, agreeing to implement a compliance plan without admitting any wrongdoing, according to multiple outlets.

Variety reported that the probe centered on what is sometimes called "showola," a variation of payola in which radio stations pressure artists to perform at station events for little or no payment in exchange for more airplay. The FCC investigated whether iHeartMedia gave preferential treatment to musicians who played at its sponsored festivals.

VarietyiHeartMedia Settles FCC 'Showola' Investigation With Consent Decree, Admits No Liability

Under the consent decree, iHeartMedia must appoint a compliance officer, file annual reports with the FCC, create a training program, and establish a whistleblower hotline. Deadline noted that FCC Chairman Brendan Carr said the agreement "adds significant new protections."

DeadlineFCC and iHeartMedia Reach Consent Decree Over Payola Investigation Tied to Festival Performances

"adds significant new protections."

The decree includes no admission of liability from iHeartMedia, as Variety highlighted. The company is the largest owner of radio stations in the United States, giving the FCC's action broad implications for industry practices.

Whatfinger also reported the consent decree, confirming the basic terms of the settlement. The agreement resolves the FCC's inquiry without further litigation, while imposing ongoing compliance requirements on iHeartMedia.

WhatfingeriHeartMedia, FCC Enter Consent Decree Over Payola Claims