Clear Channel & Warner Music Group: Pay to Play?

Clear Channel Media + Entertainment and Warner Music Group have entered into a massive partnership arrangement “that aligns both companies’ interests in driving digital growth, increase radio listenership, break new music and create new marketing opportunities for established artists.” This agreement marks the first wide-ranging strategic alliance between a major music company and Clear Channel. Through this major alliance, WMG will share in revenue from all platforms and gain new opportunities to promote the music of its emerging and established artists across all of Clear Channel’s multi-platform assets, including the company’s 850 radio stations, digital properties, outdoor assets and iHeartRadio theatres.

The deal will also make strategic use of the spaces between the music, using commercial time to promote new music by exposing songs through both an enhanced and a first-ever guaranteed and prioritized version of Clear Channel’s Artist Integration Program (AIP); it also extends to major nationally televised events, including Clear Channel’s Jingle Ball concerts, iHeartRadio Music Festival, iHeartRadio Ultimate Pool Party events, iHeartRadio Album Release Parties, etc. as well as special audio, video and digital programming and promotions; and new targeted user interfaces in digital that make it easier for consumers to buy music when they hear it, building on radio’s role as the No. 1 way people discover music.

Maybe I’m not getting this… now you have to partner up (have a business arrangement) to get air-play and break artists? When you pay to play, it’s called payola and last time I checked, payola is still illegal… right? Or maybe the law doesn’t apply to the Bain Capital owned Clear Channel Media + Entertainment company.