ASCAP and BMI Settle Royalty Rate Disputes With RMLC

The Radio Music License Committee (RMLC), which represents US broadcasters, has settled its disputes with The American Society of Composers, Authors and Publishers (ASCAP) and performing rights organization BMI. The issues related to the royalty rates radio broadcasters pay in the US.

BMI:

• BMI’s agreement with the RMLC finalizes a fee structure for the period 2022-2026, retroactive to the start of 2022.

• Though not disclosing details of the deal in their official press release, BMI has referred to it as “a historic rate increase.”

• The RMLC has also extended the terms to the end of 2029.

• As per Digital Music News, the station-by-station contract dictates some stations pay a blanket fee rate of up to 2.2% of eligible revenue through 2029.

• Other stations will have to pay a per-program revenue base rate of as much as 0.38%.

• There will also be an annual minimum licensing fee of $773 per station.

• BMI represents over 22.4 million musical works created and owned by more than 1.4 million songwriters, composers and music publishers.

ASCAP:

• ASCAP’s deal with the RMLC will see higher royalty rates paid by almost 10,000 commercial terrestrial radio stations in the US.

• The deal covers the public performance of more than 20 million musical works in ASCAP’s repertory across AM/FM radio stations nationwide.

• As per Music Business Worldwide, the settlement includes year-over-year increases in the percentage of revenue rate paid by radio stations to publicly perform music by ASCAP members.

• ASCAP represents more than one million songwriters, composers and music publisher members.

What they said:

• Mike O’Neill, President & CEO, BMI: “BMI sought a rate that reflected our market-leading share of the music performed on radio stations across the country, and I’m pleased to say we achieved our largest rate increase ever for the radio industry. 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.”

• Elizabeth Matthews, ASCAP CEO: “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.”