BMI & ASCAP Reach Settlements With RMLC
• BMI and the Radio Music License Committee (RMLC) announced a settlement of their rate court proceeding. The new agreement, which is retroactive to January 1, 2022, “represents a historic rate increase for BMI that reflects the company’s superior market share in the radio industry,” so states the press release.
“BMI sought a rate that reflected our market-leading share of the music performed on radio stations across the country, and I’m pleased to say we achieved our largest rate increase ever for the radio industry,” said Mike O’Neill, BMI President & CEO. “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.”
Asked for comment, RMLC 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.”
• And in a related story… The American Society of Composers, Authors & Publishers (ASCAP) also announced a new settlement agreement with the RMLC “that secures higher rates payable by almost 10,000 of America’s commercial terrestrial radio stations to publicly perform more than 20 million musical works in the ASCAP repertory.”
The 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.
ASCAP CEO Elizabeth Matthews commented, “This deal locks in an important royalty stream for our members at higher rates. It will deliver enhanced benefits, payments and financial certainty to ASCAP songwriters, composers and publishers, which is important to ensuring their creative and economic health and security now and in the future.”
