The Clear Channel Media + Entertainment and Suburban Noize Records is the second deal revealed this week between a radio group and a label over negotiated music royalties and airplay revenue. It’s also the 13th such agreement for Clear Channel, which began negotiating its own royalty arrangements directly with labels last June.
The market-based broadcast and digital revenue-sharing model “is the future of the music industry,” according to Clear Channel CEO Bob Pittman.
Suburban Noize Co-owner/CEO Kevin Zinger, who looks for up-and-coming underground artists, says the Clear Channel deal will help develop their careers and make their music more accessible.
Other radio groups, like Entercom and Beasley, have inked similar agreements.
Just this week Greater Media announced its first music royalty-revenue agreement with a label — Big Machine.