Radio Stations to Pay Higher SESAC Licensing Rate Through 2026 After Arbitration
Following a lengthy dispute and arbitration proceeding, SESAC and the Radio Music License Committee (RMLC) have finalized their licensing rate agreement for 2023-2026.
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Key Details:
- New Rate: 0.2824% of each station's net revenue
- Increase: 10.4% from previous rate of 0.2557%
- Coverage: Affects approximately 10,000 U.S. terrestrial radio stations
- Special Provision: Substantial discount remains for non-music stations
SESAC President Scott Jungmichel highlighted that the arbitration panel rejected RMLC's attempts to:
- Lower the rate
- Match regulated rates paid to ASCAP and BMI
- Reduce the revenue base subject to fees
The resolution marks another chapter in the ongoing relationship between SESAC and RMLC, with the revenue base for fee calculations notably expanded compared to the 2017 agreement. Final long-form terms are still being finalized, but the core rate structure is now set for the next three years.
This agreement follows other recent music licensing resolutions, including RMLC's settlement with Global Music Rights (GMR) and GMR's resolution of various broadcaster payment disputes.