Radio Reaches Deal For BMI Licensing

BMI and the RMLC (Radio Music License Committee) have reached an agreement in principle to settle their ongoing rate dispute, entering into a new multi-year deal covering the 2017-2021 period. The new license carries a rate that reflects the strength of BMI’s repertoire and its share of radio spins, which is higher than any other Performing Rights Organization.

Mike O’Neill, President & CEO, BMI, stated, “We’re pleased to reach an agreement with the RMLC that reflects a much more appropriate value for our affiliates’ music. While litigation is sometimes a necessary step, our preference is always to work out an amicable solution with our licensing partners while continually keeping the best interests of our songwriters top of mind. BMI looks forward to working with the RMLC to improve transparency in the marketplace and enhance the flow of information between our two organizations.”

Ed Atsinger, Chair of the RMLC, stated, “We are happy that our impasse with BMI has reached an amicable conclusion. The radio industry believes strongly that songwriters should be compensated fairly, and with BMI’s support, we hope that this deal will assist others in the music licensing community in determining fair rates for everyone on both sides.”

In addition to the new agreed-upon rate, which is retroactive to 2017, the RMLC has agreed to a one-time payment to BMI for litigation fees. The new agreement also clarifies and preserves the platforms that are covered by the scope of the license and associated revenue, including over-the-air broadcasts, as well as the stations’ simulcast streaming, podcasts and HD radio.

The final deal implementing the parties’ agreement in principle in a mutually acceptable long-form agreement is subject to the Court’s full approval.

BMI and the RMLC are entering into a new multi-year deal covering the 2017-2021 period.

Currently, radio royalty rates achieved by the US’s two biggest performance rights organizations, ASCAP and BMI, are governed by consent decrees, which push any dispute over broadcast payouts to federal rate court proceedings.

The consent decrees were originally intended to stop anti-competitive behavior and have been blamed for unfairly capping the potential radio (and digital radio) royalties achieved by both PROs for their members.

In December 2016, ASCAP struck a five year deal with RMLC, which included a royalty hike on the previous agreement between the two parties covering terrestrial, over-the-air broadcasts as well as certain digital transmissions.

In July 2017, private US-based licensing organization SESAC also reached a new agreement with RMLC, which the PRO claimed would result in substantially larger rates for its clients than ASCAP’s equivalent deal.