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| Scott Borchetta |
Country music label Big Machine struck a groundbreaking deal
in 2012 with radio giant Clear Channel that allowed the label to share in the
revenues from promoting its artists like Taylor Swift, Tim McGraw and Rascal
Flatts across Clear Channel's stations and digital properties.
Since then, Big Machine has reached similar partnerships
with other radio conglomerates Beasley Broadcasting, Greater Media and
Entercom, leaving only Cumulus and CBS Radio as the only major station owners
that have not agreed to a deal.
Speaking to The Hollywood Reporter ahead of Tuesday night's
TJ Martell Foundation Gala in Manhattan ,
label president Scott Borchetta talked about the benefits of such partnerships
and why he thinks CBS and Cumulus will come around.
"It's a very timely moment in everything that's
happening with performance rights. Because as you read with radio really going
after the digital dashboard, now is the time to figure out how to get digital
rates and physical rates and analog rates on the table and work out what we
believe should be one, ubiquitous, revenue-based platform," Borchetta
said.
"Radio's going to find out really quickly that all
these digital dashboard rates are going to be very expensive, very costly, so I
believe the solution is having one broadcast, revenue-based agreement with the
record companies and that's where Clear Channel and Beasley and Greater Media
and Entercom have all understood what the future's going to look like. So, it's
a forward move but adding [Warner Music Group] to the platform last month was a
huge step in the right direction and it's just a matter of when not if it's
gonna happen."
As for CBS and Cumulus, Borchetta seemed optimistic that
they would see his vision of the future.
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