The Federal Communications Commission has issued an enforcement advisory, reminding radio stations that covert manipulation of airplay based on an artist’s participation in promotions or events violates payola rules.
“Neither broadcast licensees nor their personnel can compel or accept unreported free or unreported reduced fee performances by musicians in exchange for more favorable airplay,” the Enforcement Bureau said in its advisory.
This action comes a week after Sen. Marsha Blackburn, R-Tenn., wrote to Chairman Brendan Carr.
The senator said she wanted to “sound the alarm on the exploitative practice of radio stations and networks offering an artist more airtime in exchange for performing a free show. By doing so, these radio stations and networks often reap the financial benefits of these shows through ticket sales, sponsorships and other income while artists and record labels absorb the expenses.” (Read her letter.) She did not identify specific broadcasters.
Blackburn — who is also a sponsor of legislation to require radio stations to pay performance royalties — said the promotional issue is important to Tennessee’s songwriters and music community. She believes artists are being extorted into providing free labor in exchange for airplay and noted that she was writing ahead of the Grammys.
“From what we have learned,” Blackburn wrote, “it appears that … radio stations and networks have adopted a troubling new tactic. Instead of demanding cash or lavish perks from record labels in exchange for airplay, they now pressure artists to perform ‘free radio shows’ — also referred to as ‘listener appreciation shows’ or ‘charitable concert events.’”
She said stations are forcing artists to choose between more airtime and financial compensation.
“We have heard the new scheme works in this manner: Radio stations and networks offer more airtime for an artist’s songs if the artist performs a free show. There is often an implicit suggestion that declining to perform could result in reduced airplay. Radio stations and networks often receive the financial benefit of these shows through ticket sales, sponsorships and other income while the artists and record labels frequently absorb the expense,” she wrote.
“This forced quid pro quo applies to essentially all artists, regardless of their level of success. Artists in the industry have told me that it is not unusual for them to perform anywhere from 10 to 50 such shows in any given year. Those just starting out in their career will often perform more, while those that have had more success will have to perform fewer, but they will still be expected to do them.”
We asked the National Association of Broadcasters for comment. Senior VP of Communications Alex Siciliano replied: “We appreciate the advisory although we don’t believe the FCC has received any actionable complaints. Our understanding is that our members are operating in accordance with the law.”
In the advisory the Enforcement Bureau wrote: “[B]roadcast stations that host promotions or events that include artists (whether or not the artists are compensated for the appearance) must take appropriate steps to ensure that all such promotions or events comply with the payola requirements and general public interest components in the Act and the FCC’s rules and avoid agreements that covertly increase the amount of airplay based on an artist’s performance or appearance at a station’s promotion or event.
“As the commission has previously stated, ‘[w]hen payola causes stations to broadcast programming based on their financial interests at the expense of community responsiveness, the practice is inconsistent with localism.’” The FCC emphasized that an artist’s decision to appear at a station’s promotion or event without compensation is permissible, as long as the appearance and any associated broadcasts otherwise comply with the rules.
The FCC advisory is at https://docs.fcc.gov/public/attachments/DA-25-104A1.docx.
It said questions about the advisory should be emailed to EnforcementAdvisories@fcc.gov.
