The FCC is officially investigating radio stations' potential demands for free artist performances in exchange for airplay, following concerns raised by Senator Marsha Blackburn. This practice may represent a new form of payola, where stations circumvent traditional cash-for-play restrictions by requiring artists to perform at "listener appreciation shows" or "charitable concert events."

According to Senator Blackburn's letter to FCC Chairman Brendan Carr, this practice affects artists at all career stages, with performers typically doing 10-50 such shows annually. New artists often face even higher demands. The FCC's Enforcement Bureau has been instructed to examine these claims, with updates expected soon.

Simultaneously, the American Music Fairness Act has gained renewed bipartisan support. The bill, recently reintroduced in Congress, aims to address the unique U.S. radio royalty system where AM/FM broadcasters only pay for composition rights, not recording rights.

This system originated during radio's prime as a promotional platform, 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 bill and supporting the Local Radio Freedom Act.

The new investigation and legislative momentum could signal potential changes in the relationship between radio stations and artists, though the broadcasting industry's significant influence has historically prevented such reforms.

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