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Thread: http://www.tennessean.com/article/20130915/BUSINESS06/309150044/2047/NLETTER01/Congre

  1. #1
    Carrie Guru rainbow1's Avatar
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    http://www.tennessean.com/article/20130915/BUSINESS06/309150044/2047/NLETTER01/Congre

    http://www.tennessean.com/article/20...e=nletter-news Just saw this in the Tennessean. Sony wasn't mentioned.....but, SB and Taylor were !!!

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    Okay, I read it - I see dangers but I need you music gurus to break it down how it would affect Carrie but also those artist already having trouble being played on the radio - please.
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    Ultimate Carrie Fan Farawayhills's Avatar
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    I'll try and answer.

    At present, when a song is played on terrestrial radio, royalties are paid to songwriters and their publishers. This means that Carrie earns a payment every time "Good Girl", "Two Black Cadillacs" or "See You Again" is played on the radio. (She actually gets two payments, since she owns her own publishing company, Carrie Okie) However, as she is not the sole writer, she shares this overall royalty payment with the other writers and their publishers.

    However, when "Blown Away" is played on radio, she does not receive a payment, as she's not the writer (performing artists do not receive a royalty for an ordinary radio spin)

    Arrangements are different on newer forms of media, such as internet radio. For some time, performing artists and their record labels have been trying to find ways of getting payments for traditional radio play as well.

    One development that is already happening is striking deals with radio chains to get payments (which are currently not required by law, but can be voluntarily agreed). Borchetta struck one such deal with Clear Channel - the biggest radio conglomerate. The latest deal appears to involve a similar agreement by Warner Brothers, also with Clear Channel.

    As far as I know, Sony has no such deal in place at present.
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  • #4
    sco
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    There's one thing I'm curious about. What is in it for the radio companies to make a deal with a label to pay royalties? What does Clear Channel get in exchange for paying royalties to Big Machine if they are not required to do so?

  • #5
    Ultimate Carrie Fan Farawayhills's Avatar
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    They are required to pay royalties on the newer forms of media - notably internet streaming. (These are governed by newer legislation, which has never been applied to traditional radio). This sector is growing, while radio is sen as being in relative decline. Borchetta apparently offered them a deal in which he would accept lower internet royalties, if they agreed to pay his artists for radio spins. Apparently, Clear Channel hope to expand their interests in streaming media, and saw this as desirable..

    (One article I saw asked the question 'why is Clear Channel interested in a deal with a small Country label?'... and gave the answer that 'it is a small label, with artists who are very big names in new streaming media'
    I'm not sure that phrase should be in the plural - but apparently Borchetta sees Taylor's earnings as huge enough to ride through a reduction in unit streaming revenue, in order to get radio payments for his artists who are more confined to traditional media.)
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