Greater Media has signed a deal directly with a record label for set music royalties in exchange for terrestrial and digital airplay. The broadcaster confirmed to Radio World the arrangement with Nashville-based Big Machine Label Group is Greater Media’s first music royalty deal conducted directly with a label.
Greater Media Chair/CEO Peter Smyth calls the agreement “a great example of the radio and record industries working together with the ultimate goal of being able to provide the best entertainment possible on a multiplatform basis for our valued listeners.”
Through the multiyear arrangement, Big Machine has agreed to allow digital simulcasts of the over-the-air signals by Greater Media to scale affordably to support the growth of the company’s digital platform. In exchange, Greater Media will share a percentage of its on-air revenues from the airplay of Big Machine’s recorded music on terrestrial platforms.
Big Machine President/CEO Scott Borchetta describes Smyth as an “American broadcasting visionary who understands the importance of leading a healthy radio entertainment business in lockstep with a healthy recorded music business.”
Clear Channel Media + Entertainment signed a similar deal with BMLG in June 2012. Since then, Clear Channel has signed a total of 12 such deals directly with labels as well as one with Fleetwood Mac.