ANTIQUES SHOPS

6 June 2012 Last updated at 07:15 ET

A new deal between media giant Clear Channel and a leading Nashville music label could pave the way to all artists being paid for US radio airplay.

The agreements gives artists on the Big Machine label payment for songs played on traditional radio stations for the first time.

In exchange, artists have agreed to a cap on payments from tracks played on digital stations.

Taylor Swift and Tim McGraw are among artists who will benefit from the deal.

"We're going to more than double our income from Clear Channel in the short term," said Big Machine CEO Scott Borchetta.

"They'll make it up on the back end as digital continues to grow."

Clear Channel CEO Bob Pittman called the deal "an opportunity... to align our interests in all of our revenue streams and grow digital listening to its full potential."

The deal is a significant coup for the record industry, which has been trying to secure royalties from songs played on traditional radio for decades.

Songwriters receive a small amount when their songs are played on US radio, whereas performers do not.

But they are paid royalties for online usage, placing a heavier financial onus on digital radio platforms than their terrestrial counterparts.

Rather than compensating artists every time a song is played, the Clear Channel agreement will pay them a share of advertising revenue generated across all platforms.

Clear Channel's 850 stations make it the largest radio group in the United States and a major influence on broadcasting practice.