The latest deal between radio and recording brings a new broadcaster – Beasley Broadcast Group – and an experienced label – the Big Machine Label Group – together for a deal involving airplay royalties and internet rates.
The deal follows the parameters of the Big Machine deals that have come before it – Beasley will provide Big Machine artists with a share of their broadcast income in exchange for more favorable rates for streamed material.
“In our 50-plus years in radio,” says Chairman and CEO George G. Beasley, “Beasley Broadcast has witnessed many changes in the way broadcasters deliver music to listeners. More importantly, we have put our money where our mouth is by participating in technological advancements and adjusting our business when we felt it benefited our Company and industry. Our new agreement with Big Machine represents a forward thinking way of doing business with Beasley bringing to the table dominant country-formatted radio stations in Philadelphia, Miami, Las Vegas, Fayetteville, NC and Augusta, GA. Working together is consistent with one of our core beliefs – that to maintain relevancy, radio must continually adapt to the current environment.”
“This new relationship opens the door for incredible digital broadcast opportunities between Beasley’s portfolio of radio stations and Big Machine’s talented artists,” says Executive Vice President and Chief Financial Officer Caroline Beasley. “It is a testament to how the free market should work.”
“The Beasleys have always been innovators and great entrepreneurs with extraordinary vision. Their brand is the gold standard in the industry and we are honored that we share the same vision as we move forward with our mission to help support and grow online digital broadcasting while also supporting our artists in the over-the-air world,” says Big Machine Label Group CEO Scott Borchetta. “This is a very exciting time as radio and the recorded music industry collaborate to deliver premium experiences and convenience for users.”
RBR-TVBR observation: These deals are still coming at the trickle pace. It’ll take a few more radio participants, not to mention a few more labels, before we can consider this to be a trend. But for all those who would prefer a business rather than a government solution to the issue of broadcast performance royalties, it is another step in the right direction.
