Warner Music, Clear Channel Enter Strategic Alliance
Radio giant Clear Channel and Warner Music Group on Thursday unveiled a strategic alliance with revenue-sharing elements.
Further financial details of what the partners called "the first wide-ranging strategic alliance between a major music company and Clear Channel" weren't disclosed.
The companies said the deal would align their interests in "driving digital growth, increasing radio listenership, breaking new music and creating new marketing opportunities for established artists."
WMG will share in revenue from all Clear Channel platforms and get "unprecedented opportunities to promote the music of its emerging and established artists" across Clear Channel’s 850 radio stations, 60 million monthly unique listeners across its digital properties, the company's outdoor advertising assets and more.
The deal also calls for dedicated commercial time to launch new music and also covers nationally televised events, including the Jingle Ball annual holiday concerts and the iHeartRadio Music Festival.
"Warner Music is showing the way for what a true 21st century music company can be — a music company built for the digital age," said Clear Channel chairman and CEO Bob Pittman. "They’re now poised to use this unique relationship to benefit both their new and legendary artists. We couldn’t be more thrilled to be their partner in building these exciting new markets and promoting their artists in innovative new ways."
He added: "This is a win for all parties — for artists, who will enjoy heightened and guaranteed exposure; for their fans, who will find them in more places than ever before; for consumers, who will have the enhanced ability to find and listen to music wherever and whenever they want; and for WMG, Clear Channel and all of us participating in the new digital marketplace."
"We are delighted with this multifaceted alliance, which we are confident will generate greater overall revenue for our artists and labels, while providing a host of powerful new promotional opportunities to reach a wider audience,” said Warner Music CEO Steve Cooper. "This deal is further evidence of our efforts to be nimble in artist development, our determination to create profitable new methods of breaking original music and our commitment to sustainable digital innovation."
Rob Wiesenthal, COO of Warner Music, added: "From high-visibility live and televised events to unique digital services, the breadth and strength of Clear Channel’s platforms will enable us to propel our artists' careers in an extremely competitive marketplace."
The companies also included a comment from Cee Lo Green in their announcement.
"The reach of radio, its power to promote, coupled with a recognition of the value of music makes this a great opportunity for artists and a promise to all people that finding their favorite music is fun and fundamental," he said.