The FCC has launched an official investigation into potential payola practices involving free artist performances at radio stations, coinciding with growing support for the American Music Fairness Act.

The investigation stems from concerns raised by Senator Marsha Blackburn, who alerted FCC Chairman Brendan Carr about radio stations allegedly pressuring artists to perform free concerts in exchange for airplay. This practice affects artists at all career stages, with some performing between 10 to 50 unpaid shows annually.

These events, often marketed as "listener appreciation shows" or "charitable concert events," may violate existing payola regulations, which prohibit undisclosed paid promotions on radio. Unlike streaming services, where paid promotion is permitted, traditional radio stations must disclose any compensation arrangements for airplay.

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

Meanwhile, 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 recordings.

This arrangement dates back to radio's golden age when labels would pay for airplay rather than seek compensation. Despite significant changes in the music industry since then, broadcasters have successfully maintained this system by opposing previous legislative attempts at reform, including supporting the Local Radio Freedom Act.

The success of the American Music Fairness Act now depends on whether its current bipartisan momentum can overcome traditional industry resistance and lead to meaningful change in radio broadcasting's royalty structure.

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