Carr Warns iHeartMedia on Payola
FCC Chairman Brendan Carr sent a warning Monday to iHeartMedia about compliance with agency payola rules and gave the broadcaster 10 days to submit information on its deals with artists related to an upcoming concert, according to a letter to…
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CEO Robert Pittman. “To the extent that radio industry executives believe that the FCC has looked the other way on ‘payola’ violations in recent years, I assure you that this FCC will not be doing that,” Carr wrote. The FCC issued an enforcement advisory on payola earlier this month (see 2502060054). The letter focused on the upcoming May 3 iHeartCountry Festival in Austin. “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.” Carr said he wants to know if iHeart is “secretly forcing” musicians to choose between being compensated for playing the festival or receiving less favorable airplay. The letter gave iHeart 10 days to inform the FCC about the artists playing the concert, their typical compensation, their compensation for playing iHeart’s event, and whether those deals involve airplay. It also asked for information on iHeart's payola policy, whether it shared the FCC enforcement advisory with stations, and any specific training given to employees at the festival on FCC rules.