US performing rights organization SESAC has secured a higher rate for fees collected from US radio stations after an arbitration panel ruled in SESAC’s favor amid a dispute with the Radio Music License Committee (RMLC).
The panel’s decision raises the rate to 0.2824% of net revenues, up from 0.2557%, a 10.4% increase. This new rate applies retroactively from January 1, 2023, through December 31, 2026, affecting approximately 10,000 terrestrial radio stations represented by the RMLC.
SESAC and the RMLC each claimed partial victory. SESAC’s President, Scott Jungmichel, called the arbitration a win over attempts to tie SESAC’s fees to regulated rates paid by ASCAP and BMI. In contrast, RMLC Chairman Ed Atsinger argued that SESAC’s request to double its rates was avoided, framing the decision as favorable for RMLC-represented stations.
The RMLC expects a 77.5% discount on fees for non-music radio stations, covering over-the-air broadcasting, HD multicasting, and simulcast streaming. This arbitration follows a 2015 settlement that allows SESAC to negotiate its rates independently due to its unique agreement with the RMLC.
