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Borchetta: Pandora's Business Model Is Not My Problem

2-15-2013

The Country Radio Seminar is less than two weeks away, and on our special CRS cover will be Big Machine Label Group CEO Scott Borchetta. Borchetta has been signing deals left and right with radio companies to share in revenue both over the air and online. With an artist roster boasting Taylor Swift, Tim McGraw, Rascal Flatts (pictured here) and others, even though Borchetta will tell you he's a small independent label, what he says makes big news in Nashville. When it comes to Pandora's claim they pay too much for content, Borchetta says, "I didn't ask them to take my content and build a new business model with it." Here's more from our interview with Borchetta that comes out on Monday.

"As far as Pandora and all that, I didnt ask them to take my content and build a new business model with it. They chose that route, not me. If Pandora went away tomorrow, if they went out of business, its not my fault. They chose that route. Did you see Mel Karmazin, when he was running SiriusXM, going, Man, you know what? We are going to go out of business. No. He found ways to keep building that thing and turned it into a winner."

Borchetta also thinks radio can pay artists a little bit more thanks to the money they were given back by BMI and ASCAP. "No one ever thinks they make enough money, and rates are going to change. Hopefully, the economy gets better, but over the last couple of years at radio, BMI and ASCAP gave a couple of points back. Its time to give those points to the artists, to the labels. Radio is no more important a partner than we are. We are not even asking for more. We are saying, What youve got on the table: Share it. Bring it back.

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