The NAB and SoundExchange have announced an agreement on performance rates for commercial stations that stream their broadcasts online.
The deal covers “non-subscription streaming” by commercial broadcasters for the period from 2026—2030. Payments are made to performers and record labels when their recorded music is streamed online. Noncommercial stations pay separate rates.
The agreement sets royalty rates in advance of the Copyright Royalty Board’s formal Web VI proceeding, which covers all streaming services.
Rate increases and reporting changes
According to a release, the rate per 100 streams will rise from 25 cents to 28 cents in 2026, and will increase by a fixed amount of 1 cent per year, reaching 32 cents in 2030.
The rate per 100 streams was at 22 cents in 2022 and rose to 24 cents in 2023 and 25 cents in 2024, holding steady this year.
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The settlement also shortens the payment and reporting deadlines to 30 days after the end of the month, down from the current 45 days.
Any underpayments revealed through audits will incur a 1% monthly late fee, reduced from the current 1.5%. The fee period spans from when the audit is first noticed through the date the final audit report is issued. In addition, late fees on underpayments discovered during an audit will be capped at 75% of the total amount auditors determine is owed.
Minimum fees and data access requirements
The current annual minimum SoundExchange fee of $1,000 will increase to $1,100 next year, and then by $50 annually, reaching $1,250 in 2029, where it will remain flat in 2030. Annual minimum fees will be capped at 100 times the per-station amount.
The agreement also requires licensees to provide access to performance data held by third-party vendors beginning in 2027, to help ensure accurate reporting.
NAB President and CEO Curtis LeGeyt said the deal provides “meaningful improvements” in terms of late fees and minimum payments to broadcasters, helping avoid the “high costs of litigation.”
