The news that another radio group has signed a deal with record label Big Machine was buzzing around the halls and in sessions here at the Radio Show in Dallas.
Both companies haven’t released financial specifics, but the gist of the deal is similar to that signed by the Nashville-based label and Clear Channel in June.
Big Machine said both the label and its artists would directly participate in Entercom’s terrestrial broadcast radio revenues. In exchange, Entercom gets a better deal on performance royalties.
Entercom President/CEO David Field said that while the deal comes with some significant costs and risks, the company believes that by working with the labels and the artist community to establish a new business model, “we will ultimately enhance the opportunities for all parties concerned.”
Big Machine Label Group President/CEO Scott Borchetta said the agreement takes into account how radio is being used now, and where it will be listened to in the future, namely on portables devices.
Switching back to the first deal, Borchetta said Clear Channel recently made its first payment, which was “sizable.” During a session on record labels and radio, he said his company is a smallish label that can move quickly, perhaps faster than the larger labels.
Clear Channel President of National Programming Platforms Tom Poleman said other discussions are happening between the broadcaster and other labels.
CBS Radio President/CEO Dan Mason said he’s open to meeting with record labels but didn’t promise any direct deals for performance royalties would be forthcoming.