iHeartMedia Settles FCC Payola Investigation, Agrees to Adopt New Reporting Measures to Ensure Legal Compliance
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iHeartMedia, the largest owner of radio stations in the United States, has agreed to a consent decree with the Federal Communications Commission (FCC) to settle an investigation into "showola" — a form of payola in which stations allegedly pressure artists to perform at station-hosted events for free or reduced pay in exchange for more favourable airtime. The settlement matters because it caps a probe launched last year and forms part of the FCC's stated effort to ensure artists, particularly emerging ones, are treated fairly by broadcasters. Notably, iHeartMedia makes no admission of liability, pays no fines and continues to deny engaging in showola practices.
Under the agreement, released on Thursday, iHeartMedia has 60 calendar days to develop and implement stricter reporting and disclosure procedures giving the FCC greater insight into the relationship between on-air airplay and live-event performances. The regulator had specifically examined whether the company improperly pressured artists to perform without payment at events including the 2025 iHeartCountry Music Festival in Austin, Texas. San Antonio-based iHeartMedia, which owns more than 860 radio stations across 160 US markets, said it takes compliance with Sponsorship Identification Laws seriously and that it does not promise artists more airplay for performing, or less for declining.
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iHeartMedia is the largest owner of radio stations in the United States, running more than 860 stations across 160 markets. The Federal Communications Commission, the US regulator that oversees broadcasting, had been investigating the company over allegations of "showola" — a variant of the long-banned practice of payola, where broadcasters accept money or favours in exchange for airplay. In this case, the concern was that stations pressured musicians to perform for free or reduced pay at station-run events in return for better treatment on air.
The FCC opened its inquiry last year, looking in particular at events such as the 2025 iHeartCountry Music Festival in Austin, Texas, and the wider question of whether emerging artists were being unfairly squeezed by large broadcasters. Payola-type practices matter because they can distort what listeners hear, favouring artists willing to work for less rather than those chosen purely on merit or audience appeal.
To resolve the investigation, iHeartMedia has entered into a consent decree, a formal settlement with the regulator that closes the case without the company admitting wrongdoing or paying a fine. It has committed to bringing in tighter reporting and disclosure rules so the FCC can better monitor the link between airplay and live performances, and continues to say it does not tie airplay to artists performing at its events.
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