Talking of forces to be reckoned with in radio, according to the New York Post US radio giant Clear Channel is considering setting up its own record label. The paper said yesterday that the media conglom had been investigating a move into recorded music for months. While a rumoured takeover bid for London based EMI is unlikely, the US company may look to acquire some smaller labels in a bid to enter the recorded sector.
Clear Channel's move into recorded music began, in many ways, with the introduction of its Instant Live service in which gigs staged at some of its 100 American venues are recorded and then sold to gig-goers as they leave the venue. Although still in its early stages, Clear Channel have great hopes for Instant Live and are currently threatening legal action against other companies who are setting up similar services, claiming that they own the patent on the idea.
Of course if Clear Channel did begin a proactive move into recorded music they would face considerable opposition from the music business who already argue a company who owns 100 concert venues and 1182 radio stations in the US alone is already unhealthily powerful in the music space. One music industry insider told the Post: "I think it raises significant antitrust issues when you're controlling the whole vertical stack, from distribution to content. Also, how would they establish credibility with their own radio stations and their own artists?"
Clear Channel is already due in court in Aug to face allegations they unfairly used their dominance in the radio industry to help their concert business. However, if they win that case, Clear Channel might have the renewed confidence necessary to move into recorded music.