BMI is celebrating its “largest rate increase ever for the radio industry,” as part of a settlement with the Radio Music License Committee. Hours later, ASCAP revealed a separate confidential settlement with the RMLC, also raising rates.
BMI’s rate, which rises over multiple years, marks more than a 20% jump from the previously agreed rate.
As revealed in a filing with the US District Court for the Southern District of New York, the new agreement, retroactive to January 1, 2022, sets the rate at 2.14% in 2022, escalating to 2.16% in 2024, 2.19% in 2025, and 2.20% from 2026 through 2029. Per program license base rates rise to 0.37–0.38% during the same period.
A minimum annual fee of $773 will apply to all stations.
The previously agreed headline rate for terrestrial broadcast and simulcast radio stations was 1.78% of revenue, minus a standard deduction of 12%.
About 8,895 commercial radio stations are “bound stations” under the settlement, either represented directly by the RMLC or having agreed to its outcome.
The RMLC had previously petitioned to combine rate court proceedings with ASCAP and BMI, but the request was denied. In response, the committee proposed maintaining the existing combined rate of 3.51% of net revenue, contingent on ASCAP and BMI agreeing to a market share allocation.
About 8,895 commercial radio stations are “bound stations” under the settlement, either represented directly by the RMLC or having agreed to its outcome.
BMI President & CEO Mike O’Neill stated, “BMI sought a rate that reflected our market-leading share of the music performed on radio stations across the country.”
He added, “This new deal ensures BMI’s songwriters will be more fairly compensated for the performance of their music on this incredibly important platform. Negotiation is always better than litigation, and we’re pleased to have worked together with the RMLC to achieve this outcome.”
RMLC Chairman Ed Atsinger commented, “We are pleased to have reached an amicable agreement with BMI, which is indicative of how strongly the radio industry values its partnerships with songwriters. Furthermore, we feel that this agreement provides the radio industry with the ability to plan for the long-term while avoiding substantial litigation costs and uncertainties associated with the rate court process.”
ASCAP CEO Elizabeth Matthews said, “This deal locks in an important royalty stream for our members at higher rates. It will deliver enhanced benefits, payments, and financial certainty to ASCAP songwriters, composers, and publishers, which is important to ensuring their creative and economic health and security now and in the future.”
This comes less than a year after the RMLC and SESAC both claimed victory after an arbitration panel set new licensing fees for RMLC-represented stations through 2026. On November 1, 2024, the SESAC blanket fee rose to 0.2824% of net revenue, up from 0.2557%, retroactive to January 1, 2023.
BMI, ASCAP and SESAC rates should have all been forced down when GMR came on the scene. The broadcast radio industry, which is dealing with many revenue challenges, is now paying more of its precious local revenue to these groups. How can it be that GMR enters the fray, and instead of the total royalty dollars being spread among 4 groups, local radio is paying extra for GMR, and now higher rates to the other three?? These groups clearly have no concern for the future of their broadcasting partners. Shameful.
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