Media

Wind-up is latest indie to strike up FM/online royalty deal with Clear Channel

By | Published on Thursday 11 April 2013

Clear Channel

Another US independent has reached a deal with Clear Channel Radio which will see the broadcaster offer the label a royalty for recordings played on terrestrial radio in return for a better deal on online services.

In the US labels are not due, under copyright law, a royalty when their recordings are played on traditional radio stations (though song-owning publishers are). The argument has always been that the label gets free promotion when its music is played on AM or FM radio programmes, though the American record industry does not concur and continues to lobby (so far without success) to have US law brought in line with most other copyright systems in this domain.

However, the freeplay system does not apply to online radio services, where broadcasters have to have licences from labels to use their recordings. Such licences can be obtained via rights agency Sound Exchange at rates set by statute. However, some of those broadcasters more proactively operating in the online space have started doing deals directly with labels, where they have offered, for the first time, a revenue for the rights owner based on terrestrial radio airplay in return for more favourable rates for online that Sound Exchange is able to offer.

As previously reported, radio firms Clear Channel and Entercom have both entered into such deals, with independents Big Machine and Glassnote getting involved in the label side, now joined by one of the world’s biggest indies, tedious rock specialists Wind-Up Records.

Confirming the new deal, Wind-Up’s CEO Edward Vetri told reporters: “Wind-up at its essence is an artist development company. This partnership with Clear Channel will provide us a new and innovative platform to make our artists’ music more accessible to their fans. We believe growing digital radio is critical to artist development and are excited to be aligned with Clear Channel in its digital radio strategy”.



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