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Varied Reaction to Latest Royalty Deal

Entercom praises the effort, musicFirst less enthused

Reaction to the Clear Channel and Warner Music Group announcement about their royalty/revenue deal has been varied.

Entercom Communications signed a revenue/music royalty deal with Big Machine Label Group last year.

Now, President/CEO David Field calls the Clear Channel/WMG agreement “another important step forward in establishing a new business model that aligns the interests of artists, labels, consumers and broadcast radio. While not without its costs and compromises, it represents a smart, bold and visionary approach that will foster further innovation, growth and value-creation for all stakeholders.”

SoundExchange, an organization that collects and distributes performance royalties, said the deal between Warner and Clear Channel confirms that broadcasters rely on labels for content and that the content has value. Still, the group says a legislated performance right is necessary.

So, too, do the Recording Industry Association of America and the big-label-backed musicFirst Coalition. While the coalition applauded Clear Channel and WMG for working together on a deal that allows more artists to share revenue and we appreciate the forward leaning, pro-artist sentiments expressed by Clear Channel’s leadership, these deals are no substitute for a real, industry-wide AM/FM performance right,” said coalition Executive Director Ted Kalo.