Friday, September 13, 2013
Clear Channel-Warner Music Deal Rewrites the Rules on Royalties; New York Times, 9/12/13
Ben Sisario, New York Times; Clear Channel-Warner Music Deal Rewrites the Rules on Royalties: "On Thursday, the company announced a deal with the Warner Music Group that would for the first time allow the label and its acts to collect royalties when their songs were played on Clear Channel’s 850 broadcast stations. In exchange, Clear Channel will receive a favorable rate in the growing but expensive world of online streaming...In an arrangement that has long irked record companies and led to many lobbying standoffs in Washington, terrestrial broadcasters are not required to pay royalties to labels and performing artists for the records they play on the air. On the other side, Internet radio services like Pandora, as well as broadcasters like Clear Channel through its station Web sites and iHeartRadio app, pay these royalties, but they have complained that the statutory rates for licensing music are too high. (Both terrestrial and online radio also pay music publishers, which control songwriting rights.)"