New York - Jun 11, 2012 - BMI and the Radio Music License Committee (RMLC) have solidified terms of a settlement agreement already reported by Radio magazine concerning the fees payable by U.S. commercial radio stations to publicly perform the more than 7.5 million musical works in the BMI repertoire through 2016. The RMLC represents the vast majority of the nation's radio stations. The settlement, which will require Federal Court approval, would bring an end to the two-and-a-half years of litigation between the parties.
The new BMI license covers the period Jan. 1, 2010 through Dec. 31, 2016. In broad terms, it features a return to a percentage-of-revenue fee structure and addresses the range of new media platforms in which the radio industry is increasingly engaged. More specifically, the new license entails:
◊ A $70.5 million industry fee credit against 2010-2011 industry payments
◊ A 1.7 percent-of-gross-revenue fee structure (with simplified revenue reporting) for blanket/music format license-reporting stations, less a standard deduction of 12 percent for revenue derived from terrestrial/analog and HD Radio multicasting broadcasts and a 25 percent standard deduction for revenue attributable to new media uses
◊ Retention of the program period license that benefits many news-talk stations, with a base fee of 0.2958 percent of gross revenue, less the same standard deductions noted above
◊ Expanded rights coverage to accommodate the industry's developing new media platforms related to Internet websites, smart phones and other wireless devices.
The effect of this settlement will be reflected immediately with BMI's June 2012 billing statements. The practical effect of the $70.5 million credit adjustment is that many stations will have a BMI credit balance available for the remainder of 2012. The new BMI license forms will be made available to stations following court approval of the settlement.