Commercial radio broadcasters preparing for higher streaming royalty costs in 2026 may find some relief in a newly proposed settlement between the NAB and SoundExchange. The two sides have reached an early, out-of-court agreement on statutory webcasting rates that would carry through 2030.
The NAB had argued that AM/FM simulcast streams should be charged lower rates than more interactive online services, which allow user customization. Rather than risk a costly and uncertain legal battle, the radio advocate opted for a settlement that provides moderate, predictable increases over the next five years.
In a filing with the Copyright Royalty Board, SoundExchange and the NAB agreed to avoid further litigation by proposing new rates to cover nonsubscription digital audio transmissions and ephemeral recordings. Under the proposed settlement, annual minimum fees for broadcasters would increase from $1,000 per station to $1,100 in 2026, rising $50 per year to $1,250 in 2029.
The per-performance royalty fee paid each time a listener hears a song would rise from the current rate of $0.0025 to $0.0028 in 2026, with $0.0001 annual increases reaching $0.0032 by 2030. The settlement also exempts incidental uses of music under 30 seconds, such as transitions between programming or short clips during news and sports broadcasts, from royalty obligations.
As SoundExchange had been seeking substantially higher rates than those ultimately proposed, some concessions were made. For example, payments, currently due within 45 days from the end of each month, would instead be required within 30 days.
The previous rates, set in 2021, were not as happily accepted by either party. The NAB and the National Religious Broadcasters Noncommercial Music License Committee had appealed for lower rates, while SoundExchange and Google sought higher fees. The court ultimately left the CRB’s decision in place.
The 2026 settlement will be published in the Federal Register for public comment, with the Copyright Royalty Board already expected to approve the agreement, which would take effect January 1. Noncommercial broadcasters, SiriusXM, and Pandora have not yet reached settlements and are expected to head to court later this month.
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In a filing with the Copyright Royalty Board, SoundExchange and the NAB agreed to avoid further litigation by proposing new rates to cover nonsubscription digital audio transmissions and ephemeral recordings.
The NAB had argued that AM/FM simulcast streams should be charged lower rates than more interactive online services, which allow user customization.
Interesting move by NAB and SoundExchange to reach a compromise on royalties. It’ll be crucial to see how these rate increases impact the industry moving forward.
This compromise between NAB and SoundExchange offers commercial radio broadcasters some predictability in streaming royalty rates, which is crucial for financial planning, even with the rate increases.
VINCE’s rapid rise highlights the continued power of conservative voices in podcasting and the enduring influence of legacy radio brands. It’s interesting to see how Bongino’s production company is still involved.