ASCAP, Radio Stations Reach $1.7B Deal

Agreement covers licenses for broadcasts, simulcasts.

In what is being touted as the largest single licensing deal in radio history, ASCAP and the Radio Music License Committee (RMLC) announced today (Oct. 18) a $1.7 billion agreement covering commercial radio stations’ over-the-air performances and simultaneous streaming of more than 7.5 million musical works.

The agreement finalizes retroactive license fees for the period from 2001 to 2003 and establishes new licenses for 2004-09.

The deal, approved by U.S. District Court Judge William Conner as a negotiated settlement between the parties, replaces a fee schedule based on stations’ revenues with a set payment schedule. This arrangement eliminates the uncertainty of a revenue-based system for both the radio industry and ASCAP members, as well as creating a more streamlined administrative process.

“Separating royalty fees payable from radio station revenues has been a goal of the RMLC for many years," says Keith Meehan, executive director of the RMLC, which represents most of the nearly 12,000 commercial U.S. radio stations. "With this agreement we have now accomplished that with both of the major performing rights organizations.”

BMI could not be reached for comment by deadline.

“Effective negotiation avoided the heavy cost of litigation for both sides and resulted in an agreement which can only serve to strengthen the longstanding partnership between America’s leading creators of music and their most valuable customers,” says Vincent Candilora, ASCAP’s senior VP/director of licensing.

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