iHeartMedia and the FCC have resolved an ongoing investigation into “showola” practices via a consent decree carrying no financial penalty or admission of liability. Instead, the broadcaster must implement a comprehensive compliance plan within 60 days, establishing an internal compliance officer, employee training, and a whistleblower hotline. Crucially, the mandate requires strict digital disclosures for tentpole events like the iHeartRadio Music Festival, forcing the company to publicly detail performer terms. iHeartMedia will also be subject to an ongoing audit schedule, filing compliance reports at 120 days and then annually for three years.
This regulatory intervention signals a structural shift in how broadcasters leverage terrestrial radio airplay to secure talent for proprietary live events. By demanding public transparency rather than issuing retroactive fines, the FCC is systematically dismantling the opaque bartering systems that previously governed radio festival bookings. Consequently, artists and their teams gain crucial leverage to negotiate appearance fees without the implicit threat of reduced broadcast rotation.
Curated by MusicResearch.com from Music Business Worldwide. Read the full article at: iHeartMedia settles FCC ‘payola’ probe at its live music events, with no fine and no admission of liability
