iHeartMedia Settles FCC Payola Probe Adds Reporting Rules

The nation's largest radio broadcaster, iHeartMedia, has settled a federal investigation into whether it pressured artists to perform for free at its events in exchange for increased radio airplay. The company agreed on Thursday, July 9, 2026, to strengthen its internal compliance policies but will pay no fine and admits no wrongdoing in a resolution with the Federal Communications Commission.

The FCC's probe, launched in early 2025, examined a practice sometimes called "showola," where radio stations allegedly secure free or low-cost performances by implicitly or explicitly linking them to favorable airtime for an artist's music. The agency specifically questioned whether iHeartMedia improperly pressured artists to perform without payment at events like the iHeartCountry Festival in Austin, Texas, in May 2025.

To resolve the investigation, iHeartMedia entered into a consent decree requiring it to develop and implement a new, rigorous internal compliance plan within 60 days. The plan includes establishing a whistleblower hotline, appointing a senior corporate manager as a dedicated compliance officer, and creating mandatory employee training programs. For the next three years,...