This week, Clear Channel Communications, the nation’s largest broadcaster, signed an unprecedented strategic partnership with major record label Warner Music Group. For the first time ever, Warner’s roster of performers will be compensated for plays on American terrestrial (AM/FM) radio. (Currently, only songwriters and publishers are paid for radio airplay; performers and record labels recieve nothing.)
Clear Channel chairman and chief execute Robert Pittman lauds the move as “redefine[ing] the relationship between music companies and radio.” But in reality, the deal—like those struck by Clear Channel and Fleetwood Mac , Big Machine Records, and Innovative Leisure—is frustratingly limited. For one, it will not allow for the collection of money owed to artists for international radio play. Because the US doesnt pay foreign performers and sound recording owners for radio play on our shores, American artists receive no money when their music is played abroad. Reciprocity in royalties would require an act of Congress, something that the major broadcasters have fought tooth and nail to avoid. Never mind that the rest of the developed world compensates performers (with notable exceptions including North Korea and Iran). If Pittman truly wants to “redefine relationships,” he should encourage compensating performers across the board so that America no longer gives away a valuable export free of charge on the world market.
We're currently in the midst of another "Snowpocalypse" here in Washington, DC, but we figured a blog post would give us a nice break from all that shoveling.
Today, reports emerged about Warner Music backing off of "free" music streaming. As digital entrepreneurs and rights holders continue to explore ways to get fully-licensed music to the masses via the internet and mobile, issues in licensing and revenue generation continue to bedevil players on all sides. read more