iHeartMedia reaches a settlement with the U.S. Federal Communications Commission to end an FCC investigation into alleged payola-like practices described as “showola.” According to reporting, the FCC had been examining claims that iHeart may have conditioned or influenced radio airplay for artists based on whether they performed at music shows or festivals connected to iHeart. The investigation centers on whether favorable treatment in programming was linked to an artist’s participation, including whether performances were free or offered at a reduced cost for station- or company-sponsored events.
Under the terms described across outlets, iHeartMedia agrees to enter into a consent decree with the FCC. The company also commits to adopting new reporting and compliance measures intended to ensure adherence to federal rules that prohibit the improper exchange of value for broadcast consideration. One outlet specifies that the matter involved a music festival in Austin and allegations tied to differing levels of airplay depending on the conditions of an artist’s performance.
The settlement ends the FCC’s probe while establishing additional internal oversight requirements for iHeart’s future compliance efforts.
