Innovative Leisure, the Los Angeles-based independent label that’s home to Hanni El Khatib, Classixx, Nick Waterhouse and others, is the latest indie to ink a deal with Clear Channel to share in revenues from AM/FM airplay as well as online streaming via iHeartRadio.
Under the deal, Innovative will receive an undisclosed share of advertising revenue generated by Clear Channel in exchange for licensing its catalog. The deal essentially grants the label a sound recording performance royalty for both terrestrial and digital radio, a privilege only recently enjoyed by record labels in the U.S.
Since a first such deal was struck between Clear Channel and Big Machine Records in June of 2012, the radio giant has reached similar agreements with indie labels including Dualtone, Glassnote and eOne.
Last month, Clear Channel inked a first-of-its-kind direct-to-artist revenue sharing agreement with Fleetwood Mac.
Innovative Leisure, founded in 2010 by Nate Nelson, Jamie Strong and El Khatib, has gained in notoriety since upstreaming the indie soul duo Rhye to Universal Republic in 2012. Earlier this year, an El Khatib song featured prominently in a Super Bowl commercial for Audi.