Thursday, September 12, 2013

Radio - Music try revenue-sharing

As older traditional business models are having trouble with a significantly larger and more competitive media environment, firms are seeking new options for revenues.

In a notable turn-around from intense competition with one another for shrinking revenues, mega-label Warner Music Group and radio mega-group owner Clear Channel for revenue-sharing and cross-promotion.  (It doesn't hurt that Clear Channel is also heavily involved in online radio and concert promotion).  In a nutshell, WMG gets a cut from all of Clear Channel's platforms, dedicated digital channels, and guaranteed promotion of its artists.  Clear Channel, in return, gets greater access to WMG artists and content, and (probably, but unstated) relief from emerging performance rights concerns
"WMG is showing the way for what a true 21st century music company can be – a music company built for the digital age,” Clear Channel CEO Bob Pittman said in a statement. “The team at WMG understands that old formulas don’t work as well as they must in the digital age, and that we have to think differently to build a robust future for the music industry. Today, music companies and media and entertainment companies need to be more supportive of each other’s needs. This agreement begins that new era, and will help both companies thrive in the digital world.”
The move reflects the collapse of the old market barriers, and would seem to enable better coordination and collaboration in music promotion, distribution, and sales.  There may even be some scale and scope efficiencies to discover.

Source -  Clear Channel inks royalty deal with Warner Music Group,  Inside Radio

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