RMLC Reaches Agreement with BMI & ASCAP

The Radio Music Licensing Committee has reached a long awaited settlement with both BMI and ASCAP.   The rates for ASCAP have not yet been announced, but the rates paid by stations to BMI have been made public. 

For BMI, the rate increases will be retroactive to 2022.  They also have been set for the future time-period to 2029.  Overall, the rates, which are based on revenue, will be as follows:

• 2.14% for 2022 and 2023

• 2.26% for 2024

• 2.19% for 2025

• 2.20% for 2026 - 2029

Overall, this represents an increase of approximately 1.7 percent over existing BMI payment levels.  Retroactive payments will begin in October and will be made over an 18-month period. 

The terms of the ASCAP settlement were not available when we went to press.  Nonetheless, we expect them to be retroactive as well. 

BMI CEO and President, Mike O’Neill, stated:

“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”

ASCAP CEO Elizabeth Matthews noted:

“The settlement agreement includes year-over-year increases in the percentage of revenue rate paid by radio stations to publicly perform music by ASCAP members and better reflects the ways in which AM/FM radio stations in the US currently broadcast and transmit music to their listeners, while recognizing the distinctions between the terrestrial radio industry and internet music services.”

We will report on the ASCAP rates once they become available.

Asked for comment, the RMLC’s Chairman, Ed Atsinger, said:

“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.”

Noted communications attorney David Oxenford has provided a detailed outline of the agreements in his log, which can be seen here.

You can access BMI’s press release here.

You can see ASCAP’s press release here.

A good summary can be found in Inside Radio here.