BMLG, Clear Channel Make Performance Royalty Deal: Big Machine Label Group and Clear Channel Media & Entertainment have entered an agreement that gives BMLG and its artists a share of Clear Channel's terrestrial broadcast revenue. Wholly-owned BMLG labels Big Machine and Valory, and their artists, will participate in this new revenue stream, which makes them the first record company to receive what is commonly known as a performance royalty.

"For years, record companies and media companies have looked for a new way to do business together that would bring our interests into line," says BMLG President/CEO Scott Borchetta. "In Clear Channel, I found partners who shared my big-picture view of how we could structure an agreement to benefit all involved. Not only does this partnership enable Big Machine to participate in terrestrial broadcast revenues, but we are also helping to grow digital radio – a great opportunity for all of us and a breakthrough opportunity for Big Machine artists."

"Scott Borchetta has reinvented the music business in many important ways over the years, from distribution and artist development to promotion and advertising," says Clear Channel CEO Bob Pittman. "Focusing that same creativity on how best to grow the music business, Scott has developed this new model with us to let his labels and artists participate in the revenue of broadcast radio immediately and in digital radio as it builds. This is a big step, but 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 with record labels and their artists as our partners. This landmark agreement creates a structure that makes sense for both our companies – but most of all for music fans."

"Today, 98% of our listening is terrestrial broadcast and 2% digital – with record labels and artists only paid for the 2%,” says Clear Channel Media & Entertainment Chairman/CEO John Hogan. "This new agreement expands label and artist participation from just digital to terrestrial broadcast radio revenues in one comprehensive framework that will give all of us a great incentive to drive the growth of the digital radio industry and allow everyone to participate financially in its growth.  This market-based solution helps bring the best in music to radio listeners wherever they want to hear it."