SOUNDEXCHANGE & NAB AGREE ON COMMERCIAL BROADCASTER NON-SUBSCRIPTION ROYALTY RATES AHEAD OF COPYRIGHT ROYALTY BOARD HEARINGS

WASHINGTON, April 16, 2025 /PRNewswire/ -- SoundExchange and the National Association of Broadcasters today announced an agreement on non-subscription rates applicable to Commercial Broadcasters and other royalty payment details. Announced ahead of the Copyright Royalty Board's Web VI upcoming rate setting hearings, the deal covers the five-year period beginning in 2026 and lasting through 2030.

According to the agreement, the per performance non-subscription rate will increase from the current rate of $0.0025 to $0.0028 in 2026 and grow by a fixed amount of $0.0001 each year, reaching $0.0032 in 2030. Additionally, the settlement shortens the payment and reporting deadlines to 30 days after the end of the month, reduces and caps the late fees assessed to broadcasters during audits when an auditor determines that there has been an underpayment of royalties, gradually increases the annual minimum fee payments, and requires access to performance data held by third-party vendors to help ensure accurate reporting.

"This settlement with broadcasters provides needed increases for the creative community we represent, and allows us to forego the costs, uncertainties, and distraction connected with any litigation," said Michael Huppe, President & CEO of SoundExchange. "Striking a business solution that both parties can accept has many benefits over battling it out in court and allows us to focus resources on other efforts and services benefiting our creator community."

"We are extremely pleased that we were able to come to terms with SoundExchange," said Curtis LeGeyt, President and CEO of the National Association of Broadcasters. "This settlement provides critical certainty around streaming rates in a way that is sustainable for broadcasters large and small, ensuring that local stations can continue to deliver the experiences and connection that millions of listeners depend on every day. It also includes meaningful improvements in areas like audit late fees and minimum payments, helping broadcasters focus their resources on serving fans and supporting the artists who make broadcast radio so impactful, all while avoiding the high costs of litigation."

Key points of the NAB / SoundExchange agreement include:

• Royalty Rates: Non-subscription rate applicable to Commercial Broadcasters will increase from $0.0025 in 2025 to $0.0028 in 2026 and $0.0001 each year thereafter through 2030.
  • 2026: $0.0028
  • 2027: $0.0029
  • 2028: $0.0030
  • 2029: $0.0031
  • 2030: $0.0032
• Minimum Fees: The current annual minimum fee of $1,000 will increase to $1,100 in 2026 and then by $50 annually, reaching $1,250 in 2029 and staying flat in 2030. Annual minimum fees will be capped at 100x the per station amount (e.g., $110,000 in 2026, $125,000 in 2029 and 2030).
• Late Fees: Underpayments revealed through an audit will now incur a reduced 1% late fee rate per month for the period when the audit is first noticed through the date the final audit report is issued. The existing 1.5% late fee rate per month for all other late payments remains unchanged. In addition, late fees on underpayments discovered during an audit will be capped at 75% of the total amount the auditors determine is owed pursuant to the audit.
• Payment and Reporting Timing: The deadline for reporting and payment will be 30 days after the end of the month, shortened from the current timing of 45 days.  
• Third-Party Vendor Access: Beginning January 1, 2027, licensees must contractually provide for access to perforxmance data held by third-party vendors.

About NAB
The National Association of Broadcasters is the premier advocacy association for America's broadcasters. NAB advances radio and television interests in legislative, regulatory and public affairs. Through advocacy, education and innovation, NAB enables broadcasters to best serve their communities, strengthen their businesses and seize new opportunities in the digital age. Learn more at nab.org.

About SoundExchange
SoundExchange is the premier music tech organization on a mission to power the future of music. It was independently formed in 2003 to build a fairer, simpler, and more efficient music industry through technology, data, and advocacy. The only organization designated by the U.S. government to administer the Section 114 sound recording license, SoundExchange collects and distributes digital performance royalties on behalf of 700,000 music creators and growing. Through proprietary music tech solutions that turn data into accurate revenue, SoundExchange has paid more than $12 billion in distributions to date. For more information, visit soundexchange.com.

SOURCE SoundExchange