It has been reported that GMR notified radio stations there would be an increase in its interim rates of 20%. The existing interim agreements with GMR expire on March 31st. GMR is giving stations the option to renew the interim agreement beginning Aril 1, 2021 for an additional 9 months, but at and increase of 20%. The Radio Music Licensing Committee (RMLC) and GMR have been tied up in an antitrust lawsuit for years. RMLC had no input into the terms of the new GMR interim agreement. In a letter to its members, RMLC stated:
March 2, 2021
Dear Broadcasters:
As you should be aware, GMR’s current interim license is set to expire on March 31, 2021. Because RMLC’s antitrust litigation against GMR remains ongoing, GMR recently advised RMLC that GMR will be offering new interim licenses for another nine months on the same terms, except that GMR will be charging a 20% higher price for this new interim license. RMLC understands how difficult this news may be to the many of you struggling through this unprecedented economic crisis caused by the pandemic. Please know that RMLC did not negotiate this price increase, nor did RMLC agree to it—just as RMLC never agreed to GMR’s original interim license price. As before, GMR unilaterally dictated this price increase and made clear that it was non-negotiable.
As always, it remains up to each individual broadcaster to decide for itself whether it wants to purchase an interim license from GMR or to pursue an alternative arrangement.
GMR has advised RMLC that GMR intends to contact individual stations to offer its new interim license. If you wish to accept GMR’s new interim license offer, but have not heard from GMR by March 15, 2021, please contact GMR directly before your current license expires on March 31, 2021. Please direct all other licensing questions you may have to GMR.
In the meantime, the RMLC will continue to pursue its litigation against GMR.
Radio Music License Committee
GMR is expected to reach out to stations by mid- march. If you do not hear from GMR and are broadcasting songs from their stable of artists, you may want to reach out to them.
For more information from the Radio Music Licensing Committee click HERE.
For more information from GMR click HERE.
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