Taylor Swift 's record label, Big MAChine have sealed a deal with Clear Channel that will enable the Grammy Award-winning country star to earn more money through online radio plays. Business Week reported yesterday (June 5, 2012) that the deal signed between the label and the radio giant will also affect other artists under the Big MAChine umbrella, including Tim Mcgraw and Reba McEntire.
The deal itself was announced yesterday and although the small-print of the contract has not been publicized, it is known that the artists concerned will now receive payment for songs played on Clear Channel's traditional radio stations. The artists will cap their royalties, enabling Clear Chanel "to boost its online audiences without fear of cost overruns." The CEO of the Big MAChine record label, Scott Borchetta said that the deal is the equivalent of Clear Channel "making a down payment" on the future of digital radio, ensuring that it becomes a financially viable and sustainable medium for all involved.
Clear Channel's own Ceo, Bob Pittman made a statement saying "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." Clear Channel are now seeking to seal similar deals with other labels. Business Week have described the innovative deal as "a big win for the record industry," as "the decline of music sales has made radio revenue sharing deals a big priority for artists."