In a first for U.S. terrestrial radio, Clear Channel has struck a deal to pay artist performance royalties to Big Machine Label Group and its artists. Formerly, artist royalties were only
paid for digital radio because those payments were mandated by law.
Clear Channel could be making similar deals with other record labels once the company sees how the first one pans out,
according to Ed Christman.
"Clear Channel CEO Bob Pittman told Billboard.biz he was attracted to making the deal because it treats the radio business 'holistically,' meaning that
it sets a percentage rate based on advertising revenue brought in against music airplay, regardless of whether the broadcast is transmitted via radio, mobile phone or through a
computer," writes Christman.
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