In an unprecedented deal, Clear Channel, the largest owner of U.S. radio stations, has agreed to pay sound-recording performance royalties to Scott Borchetta's Big Machine Label Group and its artists.
The sound recording performance royalty -- which is also known as the artist performance royalty and is not to be confused with the songwriter performance royalty -- is something that record labels and artist have been fighting to obtain from U.S. radio for decades. Currently, in the U.S., they have only been successful in winning such a royalty in the digital radio space.
As part of its deal with Big Machine, Clear Channel will pay an undisclosed percentage of music advertising revenue for broadcasts whether they are heard digitally or terrestrially, instead of the legislatively mandated sound-recording royalty for only digital, which currently is in the form of a pay-per-play royalty set at $0.002 for 2012.
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