Senator Takes On Radio Concerts; The Sober Market & More

Senator Prompts FCC To Eye Radio Concerts

The Federal Communications Commission reminded broadcasters that trading airplay for an artist’s participation in listener appreciation concerts and other events is a no-no.

In an Enforcement Advisory issued Feb. 6, the FCC said “the covert manipulation of radio airplay by a broadcast station licensee or broadcast station personnel based on an artist’s agreement to participate in a broadcast station’s promotion or event, often without receiving any compensation or expense reimbursement for the appearance” would likely violate federal payola law.

The advisory was prompted by a letter sent Jan. 31 by Sen. Marsha Blackburn (R-TN) to FCC Chairman Brendan Carr in which she said the concerts — which often have a charitable motivation — “extort” artists.

“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,’” Blackburn wrote. “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. … This forced quid pro quo applies to essentially all artists, regardless of their level of success.”

Making the circuit of the rapid-fire, short-set listener appreciation shows staged by radio stations is a rite of passage for up-and-comers and is seen as an efficient way to parlay a hot single into long-run success and provide valuable live experience, particularly for an artist not quite ready for a traditional headline or support spot. Indeed, the National Association of Broadcasters told Communications Daily that Blackburn’s letter underscores the value of these shows, which said it was “unaware” of any specific play-for-play complaints.

“If anything, the most notable aspect of [Blackburn’s] letter is that it confirms the enduring promotional value of local radio, which listeners value greatly. We look forward to working with the Senator should any concrete issues arise,” a spokesperson told the website.

For what it’s worth, Blackburn is the driving force behind the American Music Fairness Act, which would require royalty payments from radio play on par with what streamers pay. 

Live Nation Sobers Up

Leading non-alcoholic beer company Athletic inked a deal with Live Nation to bring their booze-free brews to LN’s venues and four major festivals: Bonnaroo, BottleRock Napa Valley, Festival La Onda and Two Step Inn. 

The move is, of course, not wholly altruistic. Demand for non- and low-alcoholic drinks is on the rise, with the market expected to grow 25% between 2022 and 2026 and 58% of all consumers telling Gallup they intend to try a non-alcoholic drink this year. Gen Z, in particular, is shaping up to be the most sober generation ever. Among drinking-age Zoomers — about half the cohort is 21 or older — beer and wine consumption is about a third lower than their millennial counterparts.

Concurrently, there have been improvements in the quality of NA beer concomitant with the increase in demand as the two best-practices methods for de-alcoholization — vacuum distillation and reverse osmosis — have become more cost-effective at scale. Gone are the days of the syrupy-sweet, off-tasting NA beer; now reasonable analogs of all beer styles are available, as Athletic’s line — which runs the gamut from Mexican-style lagers to West Coast IPAs — demonstrates. Athletic has a 19% market share in the non-alcoholic market and had 50% growth in 2024. 

Paramount’s Pending Merger Nixes CMT Awards

The 2025 edition of the CMT Awards, set for Austin’s Moody Center, has been canceled as corporate parent Paramount completes its planned merger with Skydance Media, expected to close later this year.

In a memo, Paramount+’s chief content officer Bruce Gillmer said the “pause” will allow the company to “reimagine and optimize” events going forward.

The CMT Awards began in 1967 as the Music City News Awards and were renamed in 2005. They moved from Nashville to Austin in 2023.

Market Watch

Shares of Live Nation hit an all-time high Feb. 6, cresting beyond $152 per share before closing just shy of $150. The major analysis houses have kept LYV rated as a buy despite the rising price despite little to no indication that the new regime at the Department of Justice will move to end the Biden-era antitrust action, which continues in the Southern District of New York. … MSG Entertainment — the entity that operates MSG itself, Radio City Music Hall and the Beacon Theatre in New York, plus The Chicago Theatre — reported quarterly earnings Feb. 6. Revenues were in line with expectations, but earnings took a major hit, missing targets by 31%.