When Big Machine Label Group and Clear Channel announced a royalty sharing agreement in June, industry observers deemed it groundbreaking. Proof of how that model paved the way comes with the recent news of two similar agreements. Today (9/27) Clear Channel announced a deal with Glassnote Entertainment, and last week BMLG reveal a similar contract with Entercom.
Glassnote is home to Mumford & Sons, Phoenix, Two Door Cinema Club, GIVERS, Childish Gambino, Oberhofer, The Temper Trap, Daughter, Robert DeLong, Little Green Cars and Flight Facilities.
These deals are designed to drive digital radio growth because the labels and artists will share in a smaller percentage of digital revenue than in the past. In exchange, they will share in broadcast revenue for the first time in history.