BMI



June 30, 2010

RMLC and BMI Reach Accord for $40 Million Interim Fee Decrease for Radio Industry

forms.radiomlc.com/Forms/BMI_8-1-10_Interim_Fee_Order.pdf
 
We would like to take this opportunity to advise you that, through the efforts of the RMLC’s Litigation Committee and our outside legal Counsel, the RMLC has reached a mutually agreeable interim fee rate with BMI that mirrors the decision recently issued by the ASCAP rate court (i.e., a $40 million fee decrease from 2009 fee levels).  If the combined 2009 ASCAP/BMI rates were annualized, the industry would now find the fees reduced by some $80 million, or from a combined $464 million to $384 million.
 
The corresponding ASCAP adjustment occurred in the June 2010 billing and, on average, stations should have seen their monthly fees decrease by about 10.8%. Those monthly rates will remain stable through the end of the year at the very least. The corresponding BMI adjustment will be reflected in the August 2010 monthly billing. These interim fee arrangements supersede temporary fee decreases (of some 7%) that had been voluntarily agreed to between the parties for the period commencing January 1, 2010, and will not be applied retroactively.
 
Now, with the filing of ASCAP and BMI rate court petitions for final fee determinations to carry us through 2014 (with retroactive application to January 1, 2010), the heavy lifting truly begins. Barring an intervening settlement, this process could take a year or more. Fortunately, thanks to the RMLC’s funding mechanism that was inaugurated with the last industry-wide agreements, funding to support these litigations appears to be adequate. 
 
The RMLC is pleased that it has been able to secure this significant fee relief, even as the litigation continues. We view this as an important first step toward a return to reasonable fee levels for the radio industry that reflect current economic conditions.


January 2010

Radio Music License Committee and BMI Reach Accord On Temporary License Fee Decrease

The industry-wide radio industry license with BMI expired as of December 31, 2009. The Radio Music License Committee recently reached agreement with BMI on temporary fees to be paid by radio operators, beginning January 1, 2010.  The temporary schedule reflects a provisional fee discount of 7% (as against 2009 station fee levels).  This fee reduction is reflected in the BMI monthly billings commencing January, 2010.
 
Absent a negotiated settlement between the RMLC and BMI on long-term fees, the U S District Court in New York will make a determination of interim and permanent fees for the new contract period.  The rate court process may consume one or more years.  To bridge the gap prior to determination of a final fee order (which will be retroactive to January 1, 2010), the RMLC and BMI have agreed to the aforementioned provisional fees that will remain in effect until the rate court determines interim fees, which is expected to occur during the second quarter of 2010. The RMLC remains hopeful that the rate court’s interim fee decision will result in a further fee decrease.
 
The RMLC conducted voluntary negotiations in 2009 with both BMI and ASCAP.  The separate discussions reached impasse, which left the parties no alternative but to petition fee determination from the applicable rate courts in New York.  The RMLC has also reached a similar accord with ASCAP, whose licenses also expired at the end of 2009.
 
RMLC is committed to the following goals for new BMI licenses effective January 1, 2010: 
  • implementation of licenses that fairly and accurately reflect station/industry economic performance with the least amount of administrative intrusion;
  • per program and/or blanket “carve-out” license alternatives that offer the potential for further fee discounting based upon a station’s ability to make strategic music programming choices;
  • negotiation of licenses that provide the broadest scope of rights possible with respect to new media applications (e.g., streaming, HD multicasting, mobile and other “through-to-the-listener” applications relevant to terrestrial radio broadcasting); and
  • continuation of the existing, court-mandated RMLC funding mechanism.
Streaming and HD Radio Note:
The current BMI over-the-air license incorporates HD multicasting as well as simulcast streaming of the analog and HD signal to a station’s website.