Radio and concert giant Clear Channel Communications has dipped its toe into the record business by offering instant live CDs at select shows in the Boston area. Local bands including Machinery Hall, Spookie Daly Pride, 2 Skinnee J's and Bomb Squad, as well as independent jam rockers the Samples, have participated in the "Instant Live" experiment, but so far no major-label acts have signed on.

"Of course we have aspirations to expand to that universe of artists," says Steve Simon, Executive Vice President of Clear Channel's Music Group. "But we're not betting on whether the labels will bring their acts to the table or not." Clear Channel has offered Instant Live CDs at six shows so far in the Boston area since late February. Simon said the percentage of fans buying the on-the-spot audio souvenirs has doubled his projections, averaging about twenty-three percent.

The CDs are made by blending the soundboard mix with crowd microphones and mastering the album on the fly. The master is then fed into a group of CD burners and the discs are burned and ready for fans that pre-ordered them before or during the show. To avoid any potential copyright issues, Clear Channel meets with bands in advance to discuss their set lists and cover songs that may require clearance. The company has partnered with a New York-based licensing company to provide clearance for any copywritten material performed by a band in concert.

Major labels have been understandably reticent to offer up their artists for the experiment, fearing that a glut of live CDs might eat into current album or catalog sales and that the effort could spark competition from the powerful radio conglomerate. For now, Simon said Clear Channel is happy to focus on lesser-known acts with strong followings and perhaps expand offerings to include legacy artists who are currently not signed to major-label contracts, such as the Eagles, Allman Brothers, Jimmy Buffett and the Dead. "We don't see this as competition for the labels but an opportunity to further promote the artist and increase interest in their next studio album," says Simon. He stresses that Clear Channel has no intention of venturing further into the record business by signing bands to record new material, and that a band's decision to participate in the Instant Live program will "in no way" affect its radio play on Clear Channel's 1,200 stations.

Said a former president of a major label who requested anonymity, "It sounds like a good opportunity for labels to promote their artists. The assumption is that, if they signed on, the record companies would have a say in how much they would be paid by Clear Channel and that they could just say no if the terms were not good enough."

Regardless of whether current major-label presidents will agree to participate, Clear Channel thinks Instant Live CDs are a viable business. "There is a model we believe is possible," Simon says, "even without major participation."

GIL KAUFMAN
(May 6, 2003)