Big Machine Label Group CEO Scott Borchetta brought radio and labels back together in a landmark royalty deal earlier this year with Clear Channel that compensated a record label for pay-for-play performance royalties in addition to the historical compensation awarded to songs’ writers and publishers. Next, Borchetta would like to see some similar cooperation between streaming music services like Spotify, where Taylor Swift’s “We Are Never Getting Back Together,” his label’s biggest hit, has yet to appear.
“I personally struggle with that model – I don’t think that it should be free,” Borchetta told Billboard. “We’ve spoken with the services, and spoken with Spotify in particular – I’m meeting with them next week – and we’ve talked about a lot of different things. We just haven’t hit on the right model that works for us. I don’t have thousands and thousands of albums and hundreds and hundreds of artists, I have a finite artist roster and finite number of releases. If you’re a big battleship like Sony or Universal and have tens of thousands of masters, that income stream makes sense at a big corporation. It doesn’t make sense to a small record company.”
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