SESAC

SESAC UPDATE

The RMLC and SESAC have reached agreement on a new set of new license forms that will cover the period of January 1, 2016 to December 31, 2018 and include the following key features:

  • Like ASCAP and BMI, a single, percentage-of-revenue license fee for SESAC covering over-the-air, HD multicasting, and streaming. Music-format Represented Stations’ license fees during the term will be 0.2557% of Revenues (as defined in the 2017 ASCAP Radio Station License and net of the same 12% deduction included in the ASCAP license).
  • An increased All-Talk Amendment discount. Talk-format Represented Stations will receive a 77.5% discount off of the music-format rate, resulting in an effective rate of 0.0575% of Revenues.
  • A credit and refund mechanism  applicable to Represented Stations that overpaid SESAC.
  • Group Amendment available to owners of multiple stations. For administrative ease, station group owners can sign a single Group Amendment form on behalf of multiple stations. Station groups that sign the Group Amendment can add stations acquired during the license term to their Group Amendment.
  • No minimum-fee provision and no music-usage reporting requirements.

These improved SESAC license terms are only available to stations that initially authorized the RMLC to represent them in negotiations and arbitration against SESAC for the license term of January 1, 2016 through December 31, 2018 and which maintained their eligible status throughout that process.

The new SESAC Radio Broadcast Performance License for RMLC Represented Stations is available at https://www.sesac.com/RMLCLicense.  The completed license and exhibits, where applicable (All Talk Amendment and/or Amendment for Station Groups) as well as annual report forms for 2016 and 2017 should be emailed to radiolicensingreports@sesac.com.

Eligible stations must sign and return the appropriate license forms to SESAC by May 1, 2018 in order to receive the full benefits of the RMLC’s efforts negotiating and arbitrating on those stations’ behalf. SESAC will assess a 12% penalty over the otherwise applicable fee on materials received after that date and this penalty will apply for the full term of the license.

The 2019-2022 SESAC Radio Station License

With 2018 already upon us, the RMLC will soon begin negotiations with SESAC on rates and terms to apply to RMLC-represented stations for January 1, 2019-December 31, 2022. If SESAC will not agree to reasonable rates and terms by the end of 2018, the RMLC will continue to protect the stations it represents in arbitration.

Stations that want to continue to receive the benefits of RMLC representation must maintain their eligibility under the RMLC-SESAC settlement agreement by avoiding delinquency in license fee payments to SESAC. If you execute the aforementioned 2016-2018 SESAC license forms, submit the requisite 2016 and 2017 Annual Reports and make timely payments to SESAC under your new SESAC license, you will remain a Represented Station for the next license term. No further action is required at this time.

Stations that were declared ineligible to receive the benefits associated with the 2016-2018 SESAC license may still have the opportunity to “opt-in“ to become an RMLC Represented Station for the 2019-2022 license process. Please click on the link below and complete and return the Authorization Form to the RMLC immediately [the deadline has been extended from March 31 to May 31,2018]. Due to the importance attached to this RMLC Authorization form, we encourage you to retain a record of RMLC receipt of the Authorization form. Upon request, the RMLC will be happy to acknowledge receipt of the form for your records.

CLICK HERE for RMLC Authorization Form

 


CLICK HERE for RMLC – SESAC press release dated 07/31/2017: Arbitrators Side With Radio and Reduce SESAC License Fees

CLICK HERE for email blast of press release sent on 08/01/2017

Ed Christian, RMLC Chairman, letter to industry 10/28/15

Click here for SESAC RMLC Settlement Agreement July 2015

SESAC Settlement FAQs

What does the settlement mean for the radio industry?