The radio industry and BMI have been fighting over rates since 2017, in court since 2018. A new deal was announced Thursday, although the terms were not disclosed and the arrangement still needs to be approved by the court. This new deal, if approved, dates back to 2017 and only runs through 2021.
Billboard reports that this rate dispute began when the radio industry tried to impose “a market share regime” on all four PRO’s (BMI, ASCAP, SESAC, and GMR) based on radio play. BMI came out with a smaller market share than ASCAP, according to Billboard‘s calculations, which estimated radio assigning ASCAP a 50% market share and 1.75% of radio revenue, compared to BMI’s 40% share and 1.4% of radio revenue.
The radio industry, represented by the RMLC, has also agreed to a one-time payment to BMI for litigation fees. Again, that amount was not disclosed.
Now the slightly confusing part of the deal. This new agreement also clarifies the platforms covered by the BMI license and associated revenue, including over-the-air broadcasts, as well as the stations’ simulcast streaming, podcasts, and HD radio. Yes, you read that correctly, podcasts. See our next story.
