Bob Pittman, Part 2: Time For Radio -- And The Labels -- To Change The Paradigm
June 25, 2013 at 9:59 AM (PT)
In the final part of the exclusive two-part ALL ACCESS Power Player interview, CLEAR CHANNEL Chairman/CEO BOB PITTMAN touches on delivering to advertisers expectations, iTUNES and what it means for iHEART and the other streaming services ... and he detailed the reasoning behind its out-of-the-box revenue sharing deals with labels -- and more recently, FLEETWOOD MAC -- as a way to get around exorbitant streaming costs.
"If you look at how streaming costs are set up, most radio companies are either not going into it or doing a little as it’s too damn expensive not getting enough return," he noted. "So the pressure is on everyone to find a solution that’s not taking money from one person’s pocket to put it into the other -- as that’s not a long-term business.
"What we need to find is how we can grow a market that can mainly feed the artists," PITTMAN continued. "At the end of the day, I love the record companies, but I really love the artists and want to make sure that they make as much money as they can. And going forward we have found some markets that can grow -- so in five years it’s bigger and even 10 years it’s even bigger.
"That’s the goal of this," he concluded. "And it requires us all to do things we haven’t done in the past. We stepped up and have given the participating companies a piece of our broadcast revenue. Some think we shouldn’t do that since we’ve never done that. And labels are going to have to do some new things if they want to succeed in this world."
Read the entire interview here.