McClusky Abandons Pioneering Promotion Model
November 3, 2005 at 4:15 PM (PT)
Influential independent music promoter JEFF MCCLUSKY is abandoning the business model he pioneered, reports THE NEW YORK TIMES. Under the system McCLUSKY devised, stations would receive annual "budgets" to cover promotional costs (for t-shirts, contest, station vehicles, etc.), and McCLUSKY would then collect payment from the labels for song "adds" at those stations.
Citing a combination of radio consolidation, dwindling music sales, and NEW YORK Attorney General ELIOT SPITZER's recent crackdown on payola, JEFF McCLUSKY & ASSOCIATES has reportedly notified its stations (which now number in the 30s -- down from a total of over 175 at the company's height) that the company will not be renewing contracts providing said stations with these annual budgets any longer.
McCLUSKY & ASSOCIATES' new business model is going to focus on remaining a source of info and advice on new music for client stations, while collecting money from the labels on a retainer basis.