The Radio Music License Committee (RMLC), representing nearly 10,000 U.S. commercial radio stations, reached settlements with both Broadcast Music, Inc. (BMI) and the American Society of Composers, Authors and Publishers (ASCAP) to resolve disputes over music licensing rates.
The agreements, retroactive to January 2022 and extending through December 2029, ended over three years of litigation and negotiations, providing rate certainty for radio stations and increased royalties for songwriters and publishers.
BMI Settlement Details:
The BMI settlement increased royalty rates paid by radio stations from 1.78% of net revenue to 2.14%, with a gradual rise to 2.20% by the end of the term. This was described by BMI President and CEO Mike O’Neill as the “largest rate increase ever” for the radio industry, reflecting BMI’s growing share of music played on radio.
Impact: The deal ensures fairer compensation for BMI’s songwriters and publishers for music performed on radio, covering over 22.4 million works. Stations will also pay retroactive fees for 2022–2024, with the RMLC assessing annual administrative fees ranging from $28.50 for small licensees to $1,080 for those paying BMI $20,000 or more annually.
Court Approval: The settlement awaits final approval from U.S. District Court Judge John Cronan, with a conference scheduled for September 3, 2025.
ASCAP Settlement Details:
ASCAP’s agreement with RMLC also secures higher royalty rates, though specific terms were not disclosed, unlike BMI’s public filing. ASCAP’s previous rate was 1.73% of net revenue, and the new deal includes year-over-year increases. ASCAP CEO Elizabeth Matthews emphasized that the settlement “locks in an important royalty stream at higher rates” for its over one million members, representing more than 20 million works.
Context: The agreement reflects changes in how AM/FM radio broadcasts and streams music, distinguishing terrestrial radio from internet music services like Spotify. Like BMI, ASCAP expects stations to make retroactive payments for prior years.
Litigation Background: The ASCAP case was dropped by RMLC on August 15, 2025, just before the settlement was announced, following a failed 2023 attempt to combine ASCAP and BMI rate-setting under one judge, which was rejected by a federal court.