LOS ANGELES • Radio station giant Clear Channel has signed a deal with Warner Music Group that will for the first time give a major recording company and its artists a cut of revenue generated from traditional radio station airplay.
The deal is similar to one Clear Channel cut with Taylor Swift and her Big Machine Label Group last year, and bypasses the regulatory environment in the U.S., where traditional radio stations aren’t required to pay performers royalties for airplay.
It has long been assumed performers benefit from the radio exposure in the form of sales. But CD sales have been declining, making radio royalties more important.
Warner Music will also benefit from promotional guarantees that will help both new artists and established ones, such as Cee Lo Green and Muse.