Chicago-based internet radio pioneer AccuRadio, which launched its free music streaming service in 2000, filed for Chapter 11 bankruptcy protection on Wednesday due to a legal battle over unpaid artist royalties.
The Chicago Tribune reports the independent streaming platform, known for offering nearly 1,400 ad-supported music channels across over 60 genres, owes more than $10 million to SoundExchange, the congressionally authorized organization that collects digital royalties for recording artists, according to the bankruptcy filing.
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| Curt Hanson |
The company also owes approximately $200,000 each to ASCAP and BMI, which manage royalties for songwriters, composers, and publishers.
The filing follows a 2024 lawsuit by SoundExchange in Chicago federal court, seeking unpaid digital royalties from AccuRadio.
The company, which has paid over $13.5 million in royalties to SoundExchange since 2003, ceased payments in 2018, according to the lawsuit. A 2020 payment plan was agreed upon, but SoundExchange claims AccuRadio failed to comply, leading to the ongoing litigation. Hanson noted that months of “good faith” negotiations with SoundExchange failed to resolve the dispute, prompting the bankruptcy filing. SoundExchange did not respond to requests for comment.
AccuRadio, one of the earliest internet radio services, has grown from three channels to a diverse, expert-curated lineup, attracting over one million monthly listeners and maintaining nearly 10,000 average active sessions daily, per Triton Digital’s latest rankings. Despite its popularity, the financial strain of royalty obligations has challenged the service’s viability.
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