Big Machine Label Group and Clear Channel Announce New Revenue Arrangement
Big Machine will become the first record company to directly participate, along with its artists, in Clear Channel’s terrestrial broadcast radio revenues. Artists with Big Machine’s wholly owned labels who will benefit from this agreement include Big Machine Records artists Taylor Swift, Tim McGraw, Rascal Flatts, Edens Edge and Ella Mae Bowen and Valory Music Co. artists Reba McEntire, Justin Moore, Brantley Gilbert, The Mavericks and Thomas Rhett.
Clear Channel CEO John Hogan said, “Today, 98 percent of our listening is terrestrial broadcast and 2 percent digital – with record labels and artists only paid for the 2 percent. This new agreement expands label and artist participation from just digital to terrestrial broadcast radio revenues in one comprehensive framework that will give all of us a great incentive to drive the growth of the digital radio industry and allow everyone to participate financially in its growth. This market-based solution helps bring the best in music to radio listeners wherever they want to hear it."
“For years, record companies and media companies have looked for a new way to do business together that would bring our interests into line,” said Scott Borchetta, President and Chief Executive Officer of Big Machine Label Group. “In Clear Channel, I found partners who shared my big-picture view of how we could structure an agreement to benefit all involved. Not only does this partnership enable Big Machine to participate in terrestrial broadcast revenues, but we are also helping to grow digital radio – a great opportunity for all of us and a breakthrough opportunity for Big Machine artists.”
(6/6/2012 3:27:46 PM) |
Here are the facts. NAB on behalf of the radio industry is negotiating with record labels the issue of royalties to performers. There has been a stalemate but the hope has been that with a united front, a fair solution can be reached. Comes now
Clear Channel and breaks the united front, circumvents NAB negotiations, and agrees to
royalties, and we do not know what else. NAB instead of being outraged, says it has no comment. In my opinion the NAB has ceased to represent the entire industry.
|- Saul Levine (KKGO FM)|
(6/6/2012 7:40:10 AM) |
Brilliant move! Should set a new standard for.Radio and the music industry to work together! Hope the NAB is listening.
|- Gordon Hastings|
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