The Big Machine Label Group is home to such artists as Taylor Swift, Tim McGraw, Rascal Flatts and Eden’s Edge on Big Machine Records, as well as Reba McEntire, Justin Moore, Brantley Gilbert, The Mavericks and Thomas Rhett on Valory Music Co. The group announced today that they are partnering with Clear Channel Media and Entertainment to align their business interests and accelerate growth and innovation in digital radio to the benefit of music fans and radio listeners everywhere.
Through this agreement, Big Machine (and its artists) will become the first record company to directly participate in Clear Channel’s terrestrial broadcast radio revenues. For Big Machine Label President and CEO Scott Borchetta, it was a no brainer. Borchetta said, “In Clear Channel, I found partners who shared my big-picture view of how we could structure an agreement to benefit all involved. Not only does this partnership enable Big Machine to participate in terrestrial broadcast revenues, but we are also helping to grow digital radio – a great opportunity for all of us and a breakthrough opportunity for Big Machine artists.”
“Scott Borchetta has reinvented the music business in many important ways over the years, from distribution and artist development to promotion and advertising,” said Bob Pittman, Chief Executive Officer of Clear Channel. “Focusing that same creativity on how best to grow the music business, Scott has developed this new model with us to let his labels and artists participate in the revenue of broadcast radio immediately and in digital radio as it builds. This is a big step, but we think this investment is an opportunity worth taking to align our interests in all of our revenue streams and grow digital listening to its full potential with record labels and their artists as our partners. This landmark agreement creates a structure that makes sense for both our companies – but most of all for music fans.”
“Today, 98 percent of our listening is terrestrial broadcast and 2 percent digital – with record labels and artists only paid for the 2 percent,” said John Hogan, Chairman and Chief Executive Officer of Clear Channel Media and Entertainment. “This new agreement expands label and artist participation from just digital to terrestrial broadcast radio revenues in one comprehensive framework that will give all of us a great incentive to drive the growth of the digital radio industry and allow everyone to participate financially in its growth. This market-based solution helps bring the best in music to radio listeners wherever they want to hear it.”