The deal was agreed with RadioCentre, the industry body for commercial radio, and will apply to more than 300 licensed commercial radio stations in the UK. It will run for a minimum of 5 years and replaces the previous agreement, which has been in place since 1993.
In summary, under the new licence:
* Stations will continue to pay a percentage of net revenue and an annual lump sum payment.
* Rights will be granted for radio broadcast; simulcast and catch-up listening.
RadioCentre Chief Executive, Andrew Harrison, said: “I am delighted that we have reached this new agreement together. This deal provides freedom for radio stations to use and promote music, while making sure artists and rights holders are rewarded appropriately. We look forward to continuing our mutually beneficial partnership with artists and songwriters for many years to come.”
PRS for Music, Chief Executive, Robert Ashcroft, said: “Radio is a core part of our licensing operation. The changing listener environment, digital music delivery and the growth of radio’s music services mean it’s very important that we continue to have appropriate licensing arrangements for our radio partners . Therefore we are very pleased to have concluded a modernised contract with commercial radio, on behalf of all our members.”