Photo Credit: HaeB / CC 4.0
iHeartMedia is entering into a consent decree with the FCC over the investigation into the radio giant’s alleged “showola” scheme.
The FCC probe into iHeartMedia’s alleged payola scheme—or, more accurately, “showola” scheme—has concluded, with the radio giant entering into a consent decree with the regulatory organization. The investigation was first announced last year into claims that iHeart gave increased airplay to artists who played its concerts and music festivals.
iHeart denied the claims in its initial reply to the FCC, asserting that “musicians perform at iHeart events for the promotional value, not for additional airplay” on iHeartRadio stations. At the time, iHeart also said that it “takes seriously its obligations under the sponsorship identification laws, including the federal payola laws.”
Notably, the consent decree does not in itself include any fines or fees for iHeart. The decree stipulates a new “compliance plan” that iHeart will develop in the next 60 days, and will end three years from its effective date. The 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 FCC is committed to ensuring that artists—especially up-and-coming ones—get a fair shake in their dealings with the broadcast industry,” said FCC Chairman Brendan Carr. “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.”
On Thursday, the FCC said that it agreed to a consent decree with iHeart as further investigation “would be time-consuming and would require substantial expenditure of public and private resources.”
Undoubtedly, it’s difficult to prove that an artist who plays at a given festival will receive more radio play—or the reverse if they refuse. That also certainly comes with additional layers of compliance and reporting. It’s not surprising that the FCC opted to move forward with a consent decree rather than continue to invest more resources into its investigation.
