The FCC is launching an investigation into radio stations potentially requiring artists to perform free concerts in exchange for airplay, following concerns raised by Senator Marsha Blackburn. This practice could be considered a modern form of payola, which is illegal when undisclosed.

According to Senator Blackburn's letter to FCC Chairman Brendan Carr, radio stations have adopted a strategy of demanding "free radio shows," often labeled as "listener appreciation shows" or "charitable concert events." This affects artists at all career stages, with some performing 10-50 such shows annually, and newer artists often doing more.

FCC Chairman Carr has directed the agency's Enforcement Bureau to investigate these claims, with updates expected soon.

Simultaneously, the American Music Fairness Act has gained renewed bipartisan support. The bill addresses a unique aspect of U.S. broadcasting law: unlike most countries, American AM/FM radio stations only pay royalties for musical compositions, not for recordings.

This arrangement dates back to radio's role as a primary hitmaker, when labels would pay for airplay rather than receive compensation. Despite significant changes in the music industry since then, broadcasters have successfully maintained this system by opposing previous versions of the Act and supporting the Local Radio Freedom Act instead.

The current bipartisan reintroduction of the American Music Fairness Act, with support from both parties, could potentially change this long-standing practice. The outcome of this legislation will significantly impact both the radio industry and artists' compensation for airplay.

Related Articles

Previous Articles