iHeartMedia Reaches FCC Settlement Over ‘Payola’ Practices, Avoids Fines

iHeartMedia, the nation’s largest radio station owner, has reached an agreement with the Federal Communications Commission (FCC) to settle an investigation into alleged “showola” practices.

The FCC launched the probe last year to determine whether iHeartMedia pressured artists into performing at company-sponsored concerts and festivals for free—or at significantly reduced rates—in exchange for favorable radio airplay.

The practice, commonly referred to as “showola,” is considered a form of payola and is prohibited under federal regulations.

Despite the settlement, iHeartMedia has denied any wrongdoing. Under the consent decree, the company made no admission of liability or violation of any laws and will not be required to pay any financial penalties.

Instead, iHeart has agreed to implement new reporting, transparency, and compliance procedures aimed at giving the FCC more insight into the relationship between radio airplay and artist performances at company events.

The FCC specifically examined whether artists were improperly pressured to participate in events such as the 2025 iHeartCountry Music Festival in Austin, Texas.

In a statement, iHeartMedia maintained that its live events provide valuable promotional opportunities for artists and insisted that performers are never promised additional airplay in exchange for appearing at company events.

“We do not promise artists additional airplay if they perform at an iHeart live music event, or less airplay if they decline an invitation,” the company said.

As part of the agreement, iHeart must create new compliance checklists, reporting systems, and employee hotlines to monitor potential violations related to sponsorship identification laws and payola regulations.

FCC Chairman Brendan Carr said the agreement is part of a broader effort to protect artists—particularly emerging talent—from unfair industry practices.

“The FCC is committed to ensuring that artists get a fair shake in their dealings with the broadcast industry,” Carr said in a statement.

The investigation was initially prompted after concerns were raised about whether radio companies may be using their influence over airplay to pressure artists into participating in promotional events.

With more than 860 radio stations across 160 markets, iHeartMedia remains one of the most powerful entities in American radio, making the outcome of this agreement significant for both artists and the music industry at large.