U.S. Senator Marsha Blackburn (R-Tenn.) is asking the Federal Communications Commission (FCC) to take action to prevent radio stations from offering airplay to artists in exchange for performing free shows.
In a letter sent to FCC chairman Brendan Carr on Thursday (Jan. 30), Blackburn decried the alleged practice she says is “critically impacting Tennessee’s content creators,” branding it as “payola” — the practice of accepting payment in exchange for radio airplay without disclosing it.
“As you know, the FCC considers payola a violation of the Sponsorship Identification Rules,” Blackburn wrote. “From what we have learned, it appears that to sidestep these restrictions, 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 adds that radio stations “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.”
Blackburn claims she has heard from artists in the industry who say “it is not unusual for them to perform anywhere from 10 to 50 such shows in any given year.” She adds that artists early in their careers tend to perform more but that “those that have had more success” are still often expected to perform free shows in exchange for airtime.
“This practice is exploitative and should not be tolerated,” the letter continues. “Federal law and FCC rules prohibit radio stations from receiving undisclosed compensation for broadcasting songs, and this principle must extend to free performances for radio stations and networks. Artists should not be extorted into providing free labor in exchange for airplay. I urge you to take swift action to end this abuse and protect our music community.”
A longstanding issue in the music industry, payola was first regulated by Congress in 1960 and later became the subject of a mid-2000s investigation by the New York Attorney General’s office that led to all three major labels paying millions in penalties and agreeing to reforms, including a vow not to use “commercial transactions…in an explicit or implicit exchange, agreement, or understanding to obtain airplay or increase airplay,” among other concessions.
Despite this, there has been ongoing concern in the industry and beyond about the continued effectiveness of these regulations. In 2019, then-FCC commissioner Michael O’Rielly asked the Recording Recording Industry Association of America (RIAA) to investigate allegations of payola. In 2022, several music executives met with the New York Attorney General’s office to complain that some independent promoters hired by labels had continued engaging in the practice.
According to Blackburn, whose state’s capital city of Nashville is the heart of the country music business, the alleged free concerts are simply payola in another form, writing that there’s “often an implicit suggestion that declining to perform could result in reduced airplay” — what she characterizes as “forced quid pro quo.”
You can read Blackburn’s letter in full below.
The Honorable Brendan Carr
Chairman
Federal Communications Commission
45 L Street, NE
Washington, DC 20554
Dear Chairman Carr, Thank you for your leadership at the Federal Communications Commission (“FCC”). I am writing to bring attention to an issue critically impacting Tennessee’s content creators, particularly its songwriters and music community.
Federal law prohibits radio stations from accepting payment for airtime without disclosing the transaction—a practice commonly known as “payola.”1 As you know, the FCC considers payola a violation of the Sponsorship Identification Rules. 2
From what we have learned, it appears that to sidestep these restrictions, 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.”
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.
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.
This practice is exploitative and should not be tolerated. Federal law and FCC rules prohibit radio stations from receiving undisclosed compensation for broadcasting songs, and this principle must extend to free performances for radio stations and networks. Artists should not be extorted into providing free labor in exchange for airplay.
I urge you to take swift action to end this abuse and protect our music community. Thank you for your attention to this pressing matter.
Sincerely,
Marsha Blackburn
United States Senator