Entercom, Glassnote Group swap on-air royalties for streaming discount

Here's yet another "marketplace deal" that has a major U.S. broadcaster paying a label an on-air royalty in exchange for decreased streaming royalties. Glassnote Entertainment Group, an independent label and sound recording copyright owner now has a deal with broadcast radio group Entercom Communications.

As the announcement is phrased, Glassnote will "directly participate, along with its artists, in Entercom's over-the-air broadcast radio revenues."

As we've reported, U.S. radio broadcasters aren't required to pay royalties to the owners of sound recording copyrights for on-air play -- but do pay owners and performers for online plays. Obviously, the music industry and performers want to get paid for on-air use of their copyright recordings. At the recent Internet Radio Fairness Act House Judiciary subcommittee hearing, Hubbard Radio President/CEO Bruce Reese (who also represented the National Association of Broadcasters) was pressed repeatedly on radio's broadcast exemption when it comes to sound recording royalties (our coverage is here). Reese responded by saying he would look for more deals in the marketplace that would get copyright owners paid. He was nearly certainly referring to deals such as today's.

Entercom has a similar deal with the Big Machine Label Group (our coverage here). Glassnote (and Big Machine, for that matter) also have similar deals with Clear Channel (coverage here and here).

Glassnote artists include Phoenix, The Temper Trap, Two Door Cinema Club, and Mumford and Sons (pictured).

Clear Channel last week announced a deal of this type with DashGo (here). Clear Channel also has an agreement with classical label Naxos.