Music’s Recent Radio Royalty Rate Hike

The Big Picture

A major shift has taken place in the U.S. music-rights ecosystem: the performance rights organization Broadcast Music, Inc. (BMI) has secured what it describes as its largest ever royalty-rate increase for terrestrial (AM/FM) radio. (Music Business Worldwide) Meanwhile, The American Society of Composers, Authors and Publishers (ASCAP) has also settled with broadcasters at higher rates. (Music Business Worldwide) Though this is not a change passed through Congress in the form of new legislation, it is a watershed moment in how radio royalties will be calculated and paid — and indie artists should pay attention.

What’s Changing

Here are the key details of the rate increases:

• BMI’s new deal with the Radio Music License Committee (RMLC) sets a headline rate of 2.14% of gross revenuefor 2022–2023, rising to 2.20% for 2026–2029, up from 1.78% in the previous period (2017-2021). (Music Business Worldwide)

• That represents a roughly 23.6% increase in the rate paid by radio stations for BMI-represented works. (Music Business Worldwide)

• ASCAP likewise reached a settlement covering nearly 10,000 commercial AM/FM stations, locking in higher rates and providing more financial certainty for its members. (Music Business Worldwide)

• An earlier adjustment: the Copyright Royalty Board (CRB) approved a 2.6% cost-of-living adjustment for certain non-commercial radio stations’ royalties applicable for 2025. (Radio Ink)

Why It’s Important for Indie Artists

Here are five reasons why you should care (and act) if you’re an independent artist, songwriter, or publisher:

1. Higher potential royalties for your compositions
   With rates rising, when your song is played on terrestrial radio (and you’re registered with the right PRO), the pie gets larger. If you’re aligned with SpinReports, BMI or ASCAP, this increase means more dollars flowing into the system.

2. Greater recognition of terrestrial radio’s value
   These settlements signal that terrestrial radio — still a key discovery and promotional vehicle for many indie artists — is being valued more fairly. That helps underscore the importance of radio airplay in your overall release and promotion strategy.

3. Data and transparency matter more than ever
   With higher rates comes greater scrutiny. PROs will likely continue refining their tracking, reporting, and audits. Indie artists who stay registered, ensure their metadata is clean, and monitor plays stand to gain the most.

4. More negotiating leverage
   If you’re pitching to radio stations or being considered for placement, you can point to an environment where radio royalties are trending upward. That strengthens your case for being taken seriously — especially when your work is being played.

5. Timing and strategy become crucial
   Since the rates apply to specific periods (2022-2029), it matters when your song is played and what affiliation you have with your PRO. If you’re independent and not yet registered, or your publishing rights aren’t properly assigned, you risk missing out on the benefit of this rate rise.

What to Do Now

Here are actionable steps for indie musicians to capitalize on this change:

• Confirm your membership with a performance rights organization (e.g., SpinReports, BMI, ASCAP) and ensure your works are properly registered in their catalog.

• Audit your song metadata (title, composers, publishers, release date, ISRC codes) — clean data speeds up payment.

• Ensure you’re focused on getting terrestrial (AM/FM) radio airplay in addition to streaming- and digital-only promotion.

• Monitor your PRO statements: if you start seeing more radio revenue, it can validate your strategy and open doors (promoters, sync, radio chain tours).

• Build a radio plan around key markets. Since the rate increase still depends on radio station revenue, larger stations matter — but regional and local spins also count.

This royalty increase sends a strong message: radio still matters — and its financial structure is evolving to reward creators more fairly. For independent artists, this is not just “nice to know” — it’s an opportunity. By getting your rights in order, being intentional about radio strategy, and staying engaged with your PRO, you position yourself to benefit from this shift rather than being left behind.