Roots Music Report News Article
Big Machine and Clear Channel Share Performance Royalty
All About Country.com
2012-06-05 16:17:35
All About Country.com
2012-06-05 16:17:35
Big Machine and Clear Channel Share Performance Royalty
Big Machine Label Group (BMLG) and Clear Channel Media and Entertainment have come to an agreement that will allow BMLG labels, Valory and Big Machine and their artists to share in the revenue generated through their terrestrial broadcasts. This is a first time a record company has shared in what is known as a performance royalty.
"For years, record companies and media companies have looked for a new way to do business together that would bring our interests into line," says BMLG President/CEO ScottBorchetta. "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."
"Scott Borchetta has reinvented the music business in many important ways over the years, from distribution and artist development to promotion and advertising," says Clear Channel CEO Bob Pittman. "Focusing that same creativity on how best to grow the music business, Scott has developed this new model with us to let his labels and artists participate in the revenue of broadcast radio immediately and in digital radio as it builds. This is a big step, but we think this investment is an opportunity worth taking to align our interests in all of our revenue streams and grow digital listening to its full potential with record labels and their artists as our partners. This landmark agreement creates a structure that makes sense for both our companies – but most of all for music fans."
"Today, 98% of our listening is terrestrial broadcast and 2% digital – with record labels and artists only paid for the 2%,” says Clear Channel Media & Entertainment Chairman/CEO John Hogan. "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."
Clear Channel Media and Entertainment EVP Marketing-Communications Wendy Goldberg said "We're not disclosing specific terms. But what I cna tell you is that it aligns the interests of Big Machine and its artists with our interests in a fair and mutually beneficial partnership that will accelerate growth and innovation in digital radio. It changes the fundamental structure of how we do business by putting how we pay for both broadcast and digital radio under one consistent structure.
"This payment structure now aligns our interests and matches how we make money in radio--we'll be paying Big Machine and its artists much the same way we pay ASCAP and BMI," added Goldberg, "ie revenue based."
Written By: All About Country.com
Big Machine Label Group (BMLG) and Clear Channel Media and Entertainment have come to an agreement that will allow BMLG labels, Valory and Big Machine and their artists to share in the revenue generated through their terrestrial broadcasts. This is a first time a record company has shared in what is known as a performance royalty.
"For years, record companies and media companies have looked for a new way to do business together that would bring our interests into line," says BMLG President/CEO ScottBorchetta. "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."
"Scott Borchetta has reinvented the music business in many important ways over the years, from distribution and artist development to promotion and advertising," says Clear Channel CEO Bob Pittman. "Focusing that same creativity on how best to grow the music business, Scott has developed this new model with us to let his labels and artists participate in the revenue of broadcast radio immediately and in digital radio as it builds. This is a big step, but we think this investment is an opportunity worth taking to align our interests in all of our revenue streams and grow digital listening to its full potential with record labels and their artists as our partners. This landmark agreement creates a structure that makes sense for both our companies – but most of all for music fans."
"Today, 98% of our listening is terrestrial broadcast and 2% digital – with record labels and artists only paid for the 2%,” says Clear Channel Media & Entertainment Chairman/CEO John Hogan. "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."
Clear Channel Media and Entertainment EVP Marketing-Communications Wendy Goldberg said "We're not disclosing specific terms. But what I cna tell you is that it aligns the interests of Big Machine and its artists with our interests in a fair and mutually beneficial partnership that will accelerate growth and innovation in digital radio. It changes the fundamental structure of how we do business by putting how we pay for both broadcast and digital radio under one consistent structure.
"This payment structure now aligns our interests and matches how we make money in radio--we'll be paying Big Machine and its artists much the same way we pay ASCAP and BMI," added Goldberg, "ie revenue based."
Written By: All About Country.com