Clear Channel Communications President Mark Mays estimates his company receives $10 million to $13 million a year from independent promoters – but the money is not related to airplay.
In an interview with the Los Angeles Times, Mays says Clear Channel has encouraged record companies to stop the payments. But some labels fear that if they stop payments to independent promoters, their rivals would have an edge in getting airplay, the report said.
“The record labels are sitting here with a very old business model that is going to be difficult to reinvent. And they’re lashing out instead,” said Mays.
Referring to Sen. Russ Feingold’s bill to curb such promotion practices and limit consolidation, Mays said involving Congress essentially is asking lawmakers to step in and prevent the record companies themselves from writing checks to independent promoters.
Mays says labels have no business “screaming about radio consolidation.” In radio, he said, the top 10 companies account for 44 percent of industry revenues, whereas the top five record companies control 85 percent of theirs.
Mays Blasts Back at Labels
Mays Blasts Back at Labels
