American radio giant iHeartMedia has committed to ramp up its anti-payola policies in an agreement with US media regulator the Federal Communications Commission. Although the broadcaster remains adamant that everything was above board under its existing policies.
Payola refers to radio stations receiving money or other benefits from record labels or artists in return for guaranteeing airplay. FCC Chair Brendan Carr revealed he was talking to iHeart about its current payola policies in February last year, shortly after the regulator published an ‘enforcement advisory statement’ on a very specific kind of payola.
The kind of payola in the spotlight this time is when radio stations pressure artists to play their live events for free or at a significantly reduced rate in return for on-air support. The FCC says that this kind of payola could be referred to as ‘showola’. Though I think we should all agree that we will never do that.
In a letter sent to iHeart CEO Bob Pittman last year, Carr wrote, “it appears that certain owners of federally licensed radio stations are effectively compelling musicians to perform at radio station events or festivals for free (or for reduced compensation) in exchange for more favourable airplay. When unreported, these schemes can violate federal ‘payola’ laws”.
Talks between the FCC and iHeart about its payola policies and how they apply to live events have seemingly continued ever since. Resulting in a ‘consent decree' agreement between the broadcaster and the regulator, in which iHeart commits to enhance its internal systems to ensure its radio stations never employ ‘showola’ practices. It doesn’t actually forbid iHeart execs from using the term ‘showola’, though it clearly should.
The FCC summarises iHeart’s commitments as follows, “iHeartMedia will designate an internal compliance officer, develop and implement procedures for training, produce regular reports to the FCC, and establish a whistleblower hotline for any employee who suspects wrongdoing”.
For its part, iHeart says it “appreciates” the “recent opportunity to engage with the FCC on their questions about our live music events”. Not least because that provided the opportunity to stress that “iHeart does not promise artists additional airplay if they perform at an iHeart live music event or less airplay if they decline an invitation”.
“As we have consistently noted”, it adds, “iHeart’s industry-leading live music events provide unique opportunities and value to performing artists by enabling them to reach their broad and engaged audiences and to enhance their careers”.
While iHeart already takes payola rules very seriously, it goes on, and “we already have practices and procedures in place to address them”, the broadcaster nevertheless “appreciated the opportunity to work with Chairman Carr and his staff to develop industry-leading approaches to augment our existing procedures to ensure continued compliance in connection with our live events”.
You do sense that iHeart probably considered the whole process of reviewing and slightly expanding its anti-payola measures a massive waste of time.
Though given close Trump ally Carr has been criticised by some people for using the power of the FCC against media companies that have the nerve to critique or mock the President, a modest rewrite of payola rules is not that big a deal by comparison. And probably a good thing for the artist community.
Either way, Carr definitely seems happy. “Today’s agreement adds significant new protections and offers the FCC greater transparency to ensure that artists retain their right to decide when and where they will perform”, he says. “Artists have every right to ensure that the radio industry complies with the payola and showola regulations that protect them”.
Which is true, they do. Providing they never ever use the word ‘showola’.