Radio to Pay 60 Percent Less In Royalties to SESAC

According to an Inside Radio report, the radio industry will pay less in royalties to SESAC under an agreement reached in an independent binding arbitration with the for-profit performance rights organization.

Under the agreement, stations will pay 60 percent less than what SESAC had been charging on its rate card. The settlement retroactively covers the period from Jan. 1, 2016 through Dec. 31, 2018.

In a statement, the Radio Music License Committee (RMLC )called the arbitrators’ decision a “significant favorable step in the right direction” for the radio industry, since it brings SESAC’s license fees and rate structure more into line with the rate formulas used by American Society of Composers, Authors and Publishers (ASCAP) and BMI.

The settlement also includes SESAC transitioning to a percentage-of-revenue license structure rather than its traditional rate-card approach.

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