The Federal Communications Commission is asking iHeartMedia to prove it isn’t making music artists perform without full compensation in exchange for better radio airplay, a possible violation of U.S. “payola” laws, according to a letter obtained Tuesday by TheWrap.
Carr’s letter, addressed to iHeartMedia CEO Robert Pittman, refers to a recent FCC Enforcement Advisory highlighting what the FCC calls a trend – radio station owners and festival promoters coercing artists into illegal arrangements.
“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 wrote.
Carr is seeking detailed information about the Austin-based iHeartCountry Festival in early May to ensure compliance. The letter gives 10 days for iHeartMedia to respond to eight questions, including a list of scheduled artists and their compensation; whether airplay is influenced by their participation; reasons for artists performing for free or at reduced fees; and regulatory compliance training protocols.
In a statement to TheWrap, iHeart said: “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 company said participation in its country festival has no bearing on its radio stations’ airplay, and that it makes no such agreements either overtly or covertly.
“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,” iHeart said. “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.”
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