Radio Music License Committee, ASCAP Announce Five-Year Agreement On Royalties

Deal

The RADIO MUSIC LICENSE COMMITTEE and ASCAP have inked a new five-year agreement that sets music royalty rates payable by commercial broadcast radio stations through 2021.  Rates are increasing for broadcast and certain digital radio stations and sets the percentage share of radio performances represented by ASCAP at a level above other performing rights organizations, to reflect that ASCAP represents more compositions played on the radio than the others.

ASCAP CEO ELIZABETH MATTHEWS said, "We are confident that our new agreement will provide enhanced financial benefits to ASCAP songwriters, composers and music publishers at a time of tremendous disruption in the music industry. Reaching a voluntary agreement with the terrestrial radio industry enables ASCAP to stabilize and grow revenues for our members while continuing to aggressively advocate for regulatory reform to modernize the music licensing system."

RMLC Chairman ED CHRISTIAN said, "This agreement demonstrates how the creative and music user communities can work together in good faith to produce an outcome that is positive for both sides. The increase in ASCAP fees is consistent with ASCAP's established spin share on radio. We are pleased to close this deal ensuring that there will be no interruption in ASCAP music being performed on American radio at a time when the music licensing landscape has become increasingly complex."   The RMLC is suing IRVING AZOFF's GLOBAL MUSIC RIGHTS, charging monopolistic practices and inflated royalty rates, and GMR has countersued, alleging collusion leading to lower royalties.

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