WASHINGTON D.C. (CelebrityAccess) — SoundExchange and the National Association of Broadcasters have announced an agreement on non-subscription rates for commercial broadcasters, along with details of other royalty payments.
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 will rise by a fixed amount of $0.0001 each year through 2030, when the rate reaches $0.0032.
Additionally, the agreement shortens reporting and payment deadlines to 30 days after the end of the month, down from the previous 45 days. Other provisions reduce and cap late fees assessed to broadcasters during audits at 1% per month, starting from when the audit is first noticed through the issuance of the final audit report.
The current late fee rate of 1.5% per month for all other payments remains unchanged, although late fees on underpayments discovered during an audit will now be capped at 75% of the total amount the auditors determine is owed.
The negotiations also resulted in a new requirement for licensees to provide access to performance data held by third-party vendors, beginning January 1, 2027.
“This settlement with broadcasters provides needed increases for the creative community we represent and allows us to forgo 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.”
