Rich Fiscus
19 May 2009 10:56
As Congress considers new royalties for US radio stations to pay labels for promoting their music it seems somewhat ironic that the largest broadcaster in the US appears to be in serious financial trouble.
Less than a year after being purchased by a private equity firm, Clear Channel Communications is working to restructure their debt, hoping to avoid bankruptcy.
Despite claims to the contrary by recording industry lobbyists, radio stations aren't making huge profits at the expense of the labels. In fact Clear Channel lost $428 million in the first quarter of this year.
The loss was primarily due to lower ad revenues. Revenue for the quarter dropped 23% from the same period in 2008.