iHeartMedia reaches a settlement with the U.S. Federal Communications Commission (FCC) over allegations of “showola,” a form of payola the agency says can occur when radio stations condition favorable treatment—such as increased or decreased airplay—on whether artists perform for free or at reduced cost at station-related events. Multiple outlets report that the FCC launched the probe last year and questioned iHeartMedia’s compliance with federal rules, including whether artists received different airplay based on participation in iHeart-hosted programming and music festivals.
Under the terms described by the outlets, iHeartMedia agrees to enter a consent decree with the FCC to end the investigation. The company implements new reporting and compliance procedures intended to ensure its practices comply with FCC requirements. One report notes the investigation centers on whether artists in connection with iHeart-sponsored events in Austin received treatment that differed depending on how they performed.
Billboard reports the settlement closes the matter without any fine and without a formal FCC determination that iHeartMedia engaged in wrongdoing. The FCC and iHeartMedia do not present the case as an admission in the coverage summarized here, but the settlement requires changes to iHeartMedia’s compliance framework.
