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

According to Senator Blackburn's letter to FCC Chairman Brendan Carr, radio stations are pressuring artists to perform at "free radio shows," "listener appreciation shows," or "charitable concert events" as a condition for airplay. This affects artists at all career stages, with some performing 10-50 such shows annually.

FCC Chairman Carr has directed the agency's Enforcement Bureau to examine 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: unlike most countries, American AM/FM radio stations only pay royalties for musical compositions, not recordings.

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

The broadcasting industry has historically supported the Local Radio Freedom Act, which aims to prevent new royalties or fees for local radio stations. However, with growing bipartisan backing for the American Music Fairness Act, this longstanding practice may face new scrutiny and potential reform.

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