US performing rights group SESAC has won a request to increase the fees it charges US broadcasters after an arbitration panel ruled in an ongoing dispute between SESAC and station owners.
The expert panel ruled that Radio Music Licensing Board (RMLC) will pay the new rate 0.2824% Net income, higher than previous ratio 0.2557%according to a report radio ink. This is equivalent to a 10.4% Funds paid out increased relative to radio station revenue.
The new rates will be applicable from January 1, 2023 to December 31, 2026.
RMLC representatives approx. 10,000 American terrestrial radio stations, whose governing body consists of station owners and managers.
“The arbitration award reflects RMLC’s failure to enforce regulatory rates on SESAC.”
Scott Jungmichel, SESAC
Both RMLC and SESAC viewed the arbitration outcome as a victory, with SESAC claiming it had defeated efforts by broadcasters to reduce payments to two other major US PROs to similar levels, ASCAP and body mass index.
“The arbitration award reflects another failure by RMLC to impose regulatory rates on SESAC since SESAC and RMLC reached a settlement in 2015,” said SESAC President and Chief Operating Officer. Scott Joan Mitchell said in a statement.
“The panel granted SESAC a more than 10 percent increase while rejecting RMLC’s attempts to reduce rates, turn back the clock, and make SESAC comply with the regulatory rates paid by ASCAP and BMI. Furthermore, the revenue base for the fee is much higher than what the station group would have paid under The 2017 Awards seek to disburse income.
However, SESAC aims to double the rates it receives from U.S. broadcast stations, according to RMLC. Inside the radio stationin this context, the industry group declared victory.
“Despite the fact that no fee increase was necessary, the arbitration decision reported here is a significant victory for the radio stations represented by the RMLC.”
Ed Azinger, RMLC
The RMLC chairman said: “Despite the fact that no increase in fees was necessary, given SESAC’s requirements, the arbitration decision reported here is a significant victory for the radio stations represented by the RMLC and comes at a time of economic challenge for the industry. out. Ed Azinger said in a statement.
“The RMLC intends to continue to defend and protect the interests of its members at a time when all well-performing organizations are seeking significant fee increases.”
The RMLC also noted that all aspects of the arbitration agreement have not yet been finalized, but it is widely expected that non-music radio stations will continue to enjoy 77.5% Rates for licensed music are discounted, and the deal will cover over-the-air broadcasts, HD multicast and simulcast streaming.
Thanks to a 2015 settlement of an antitrust case brought by RMLC, SESAC was able to negotiate different rates than those paid by ASCAP and BMI. SESAC Paid $3.5 million Not only did it settle the case, but it also won the right to enter commercial arbitration over the fees it charged RMLC members if future negotiations failed.
Those talks did fail in the latest round, with no deal reached after the end of 2022 and the talks being referred to arbitration.global music business
