iHeartMedia Settles FCC Payola Investigation, Agrees to Adopt New Reporting Measures to Ensure Legal Compliance

iHeartMedia, the largest owner of radio stations in the U.S., agreed to enter into a consent decree with FCC to settle a probe the agency launched last year into iHeartMedia’s compliance with federal rules prohibiting a specific form of payola dubbed “showola” — which involves radio stations pressuring artists to perform at station-hosted music shows or festivals for free or for reduced payment “in exchange for more favorable airtime for their songs,” per the FCC.

By entering into the consent decree, iHeartMedia “makes no admission of liability or violation of any law, regulation or policy,” according to the terms of the agreement, released Thursday. The company also is not paying any fines related to the settlement. iHeart has denied that it engages in “showola” practices.

Under the agreement, iHeartMedia within 60 calendar days will develop and implement “rigorous reporting and disclosure procedures to provide the FCC with additional insight into the relationship between spins on air and performances at live events — ensuring no prohibited pressure or relationships,” according to the FCC.

The FCC was specifically looking at whether iHeartMedia improperly was pressuring artists to perform without payment at events including the 2025 iHeartCountry Music Festival in Austin, Texas.

In a statement, an iHeartMedia spokesperson said: “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 company statement continued: “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.”

San Antonio-based iHeartMedia has a footprint of more than 860 owned radio stations in 160 markets across America.

According to the FCC, the settlement with iHeart is part of its broader policy goals to ensure that artists are treated fairly by radio broadcasters.

“The FCC is committed to ensuring that artists — especially up-and-coming ones — get a fair shake in their dealings with the broadcast industry,” FCC Chairman Brendan Carr said in a statement. “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.”

The probe into iHeartMedia’s practices in this area was kicked off by Sen. Marsha Blackburn (D-Tenn.), who in January 2025 alerted the FCC of “a potential new payola practice where radio stations and networks offer more airtime for an artist’s songs if the artist performs a free show, with an implicit suggestion that declining to perform could result in reduced airplay.” On Feb. 6, 2025, the FCC’s Enforcement Bureau then issued an enforcement advisory reminding broadcast licensees that payola is not only a violation of U.S. law but may also subject broadcasters to sanctions under the Communications Act.

A copy of the iHeartMedia consent decree with the FCC is available at this link. The FCC, in announcing the agreement, said that “Today’s announcement also serves to remind artists of their existing rights under payola and showola laws. Artists may report suspected violations of the FCC’s payola rules to payola@fcc.gov.”

Under the consent decree, among other things, iHeart will commit to “enforcing reasonable standards with respect to the Sponsorship Identification Laws in connection with Company Performance Events to avoid violations and the appearance of impropriety in the Company’s music programming.”

In addition, the company is required to develop a “compliance checklist” that describes the steps that a applicable employees must follow “to ensure compliance with this Consent Decree and the Sponsorship Identification Laws in connection with Company Performance Events.” Furthermore, iHeart must “maintain a direct-dial line with voice mail message capability and e-mail account for Company employees through which they can reach the Compliance Officer to report potential violations of the Sponsorship Identification Laws.”