iHM Responds To FCC Payola Scrutiny

iHeartMedia CEO Bob Pittman, has responded to the FCC's payola scrutiny with a public statement rather than a detailed formal response, as the deadline set by FCC Chairman Brendan Carr for a comprehensive reply. 

The scrutiny stems from a letter sent by Carr this week, to Pittman, raising concerns about potential payola violations related to the upcoming iHeartCountry Festival scheduled for May 3, 2025, in Austin, Texas. The FCC is investigating whether iHeartMedia is pressuring artists to perform at the festival for free or reduced compensation in exchange for favorable airplay, a practice that would violate federal payola laws if not properly disclosed.

Bob Pittman

In response, iHeartMedia issued a statement emphasizing their intent to cooperate with the FCC and defend their practices. 

They asserted that participation in the iHeartCountry Festival—or the choice to decline—has no influence on airplay decisions across their extensive network of over 850 radio stations. 

The company likened the festival to other promotional platforms like talk shows, late-night television, or the Super Bowl, arguing that the event itself provides significant promotional value to artists, independent of any airplay considerations. They explicitly denied making "overt or covert agreements about airplay with artists performing at our events," suggesting that their model is based on mutual benefit rather than coercive quid pro quo arrangements.

The statement also expressed appreciation for Carr’s interest in ensuring industry compliance with applicable laws and confirmed that iHeartMedia would address the specific questions posed in Carr’s letter "expeditiously." 

Pittman's Response:

 "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 Commission's recent Enforcement Advisory to the radio industry as a whole stated that manipulating airplay based on artist participation in station events without proper disclosure violates federal laws.

We look forward to demonstrating to the Commission how performing at the iHeartCountry Festival -- or declining to do so -- has no bearing on our stations' airplay, and we do not make any overt or covert agreements about airplay with artists performing at our events.

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. 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."