The universe of radio and record companies with privately-negotiated royalty agreements just increased by one as Glassnote Entertainment Group signs a pact with Clear Channel. The other companies are Cumulus on the radio side and Big Machine on the label side.
As with the Big Machine deal, Clear Channel has agreed to share airplay revenues with Glassnote and its artists in exchange for favorable digital streaming rates.
In a statement, Glassnote said, “This market-based partnership, the second of Clear Channel’s groundbreaking agreements with music companies, will help establish a business model that supports the development of a vibrant and sustainable digital music industry to the benefit of all constituencies -artists, music companies, radio and consumers.”
Glassnote’s talent roster includes Mumford & Sons, Phoenix, Two Door Cinema Club, GIVERS, Childish Gambino, Oberhofer, The Temper Trap, Daughter, Robert DeLong, Little Green Cars and Flight Facilities.
“We built Glassnote to be a next-generation music company that embraces change, including evolving technologies,” said Glassnote Founder and Chief Executive Officer Daniel Glass. “One of our passions is aggressively finding new and innovative ways to make our artists’ music and information more available than ever to their fans. It is no secret of our respect and love for radio. This partnership aligns our business interests more closely with Clear Channel, and we’re excited about being part of the drive to grow digital radio faster and bring all of its benefits to music fans.”
Bob Pittman, Chief Executive Officer of Clear Channel, said, “Daniel Glass is a savvy music business veteran who’s been leading his spirited independent record label to success after success. So it’s no surprise to us that Glassnote quickly saw this was a great opportunity to help move the digital radio industry towards a more sustainable future. Not only will this agreement expand his label and artists’ participation in all of Clear Channel’s radio revenues; it also creates a vibrant new digital radio business model that we believe will provide more money for the artists and the labels and more digital choices for the consumer.”
RBR-TVBR observation: The pace of radio/label pacts is now up to a trickle. Anybody else ready to jump in? It will be especially interesting to see if another radio group jumps into the pool. We’re watching…