Broadcast Music Inc. (BMI) and the Radio Music License Committee (RMLC) have agreed to terms on a new deal that concludes their extended rate court battle. The agreement, announced this week, applies retroactively to January 1, 2022.
BMI described the settlement as a landmark moment. While noting that it delivers the largest royalty rate increase the organization has ever achieved with the radio industry.
“BMI sought a rate that reflected our market-leading share of the music performed on radio stations across the country. I’m pleased to say we achieved our largest rate increase ever for the radio industry,” said Mike O’Neill, President & CEO of BMI. “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.”
For broadcasters, the RMLC emphasized predictability and avoided costs as key outcomes of the settlement.
“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,” said RMLC Chairman Ed Atsinger. “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.”
The settlement resolves one of the highest-profile licensing disputes between radio operators and rights holders. While establishing new royalty terms for BMI’s songwriters and publishers across U.S. radio.
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