BMI announced its largest-ever rate increase for the radio industry following a settlement with the Radio Music License Committee, while ASCAP quickly revealed a separate confidential agreement with the RMLC that also boosts rates. BMI’s settlement, retroactive to January 1, 2022, represents more than a 20% jump from the prior agreement.
According to filings with the US District Court for the Southern District of New York, BMI’s headline rate begins at 2.14% in 2022, rising to 2.16% in 2024, 2.19% in 2025, and 2.20% from 2026 through 2029. Per program license base rates also increase slightly to 0.37–0.38%, and all stations will pay a minimum annual fee of $773. The earlier rate had been set at 1.78% of revenue, with a 12% standard deduction.
About 8,895 commercial radio stations are considered bound stations under the settlement, either directly represented by the RMLC or voluntarily adopting its terms. The RMLC had sought to combine rate court proceedings for BMI and ASCAP into one case, aiming to preserve the existing 3.51% combined rate by splitting it according to market share. The request was denied, leading to separate settlements.
BMI President and CEO Mike O’Neill said the increase better reflects BMI’s music share on radio and ensures more equitable compensation for songwriters. He added that negotiation was preferable to litigation and praised the cooperative outcome with the RMLC.
RMLC Chairman Ed Atsinger described the agreement as evidence of the industry’s respect for its partnerships with creators, noting that the settlement allows broadcasters to plan long-term while avoiding expensive and uncertain court battles.
ASCAP CEO Elizabeth Matthews said its deal secures an important royalty stream for members at higher rates. She emphasized the agreement would provide enhanced benefits, payments, and financial stability for ASCAP songwriters, composers, and publishers.
These settlements follow an arbitration decision involving SESAC less than a year ago. On November 1, 2024, SESAC’s blanket fee rose to 0.2824% of net revenue, up from 0.2557%, retroactive to January 1, 2023, with both SESAC and the RMLC claiming victory in that proceeding.
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