Clear Channel, America's largest radio broadcast chain, and Warner Music Group have announced a strategic partnership that they say is aimed at driving digital growth, increasing radio listenership and "heightened and guaranteed exposure" for WMG artists.
But the deal also marks the first time that Clear Channel will pay broadcast royalties to a major label group. Terms of the multi-year pact were not disclosed, but insider sources say that Clear Channel will pay a lump sum for both terrestrial and digital broadcast rates.
Under the new pact, Clear Channel will provide WMG the opportunity to promote their artists on all of Clear Channel's platforms, including the company's radio outlets, live events, online streams, and iHeartRadio programming. In exchange, WMG will share in the revenue generated on all of Clear Channel's platforms.
Clear Channel will also develop a user interface that make it easier for listeners to purchase music from artists when they hear.
Music trade group MusicFirst applauded the WMG and Clear Channel deal, but added that it is "no substitute for a real, industry wide AM/FM performance right."
Clear Channel operates 850 radio stations nationwide, drawing 243 million monthly broadcast radio users and sees 60 million monthly unique visitors across its digital properties and its iHeartRadio theaters. As well, more than 143 million people a month are exposed to Clear Channel's outdoors offerings such as billboards.
via Celebrity Access