At Sunset, we’re all about the rhythm behind the scenes—and this week, the beat’s getting louder in the boardrooms. After months of behind-closed-doors talks, a new agreement between the National Association of Broadcasters (NAB) and SoundExchange is poised to reshape the way commercial radio stations pay for digital music streaming. Translation? The money flowing to artists, labels, and rightsholders through streaming royalties is likely about to increase, and the industry is on the edge of a new chapter.
The Deal on Deck: What’s Actually Happening?
After kicking off negotiations back in January 2024, the NAB and SoundExchange have reached a tentative agreement that could reset the way royalty rates are calculated and collected for radio stations that stream their broadcasts online. While the full details haven’t been officially unwrapped yet, what’s on the table appears to be a multiyear licensing framework that not only adjusts how much these stations will pay, but also how these royalties get distributed.
If this new structure is finalized—and that’s still an “if” as of press time—it will cover the fees commercial radio broadcasters owe for simulcasting their terrestrial signals over the internet, as well as streaming on-demand or web-only content. This is the kind of music you hear when your favorite FM station has a “listen live” button or runs a digital-only channel on their app or website.
Why This Matters: Artists, Rights, and Revenue
We’ve heard this one before: streaming is the future. But the royalty structures governing traditional radio’s digital evolution have struggled to keep pace with today’s music economy. What makes this new agreement important is that it could bring more consistent revenue to artists and rights holders by modernizing the digital royalty system for broadcasters that have long benefited from lower rates in the online space.
SoundExchange, the nonprofit organization designated by the U.S. government to collect and distribute these royalties, has often been at the center of this conversation. This tentative agreement also includes a provision giving SoundExchange the green light to distribute these royalties more efficiently—potentially accelerating how quickly payments reach the people behind the music.
In other words, more artists might finally start seeing more of their streaming money, more often.
The Audit Angle: Keeping Everyone Honest
Another key piece of the deal? Transparency. The new framework reportedly allows for enhanced auditing, meaning SoundExchange will have expanded access to radio stations’ streaming data and usage reports. This is about more than just dotting i’s and crossing t’s—it’s a major step toward accountability in a business that, historically, hasn’t always been the most artist-friendly when it comes to data.
By tightening up the reporting and audit process, SoundExchange can better ensure that royalties are being calculated accurately and distributed fairly. And that’s something we can all get behind.
A New Landscape for Digital Broadcast?
This isn’t just about paperwork and payment percentages—it’s about evolving with the times. As digital streaming becomes the new normal, even for legacy radio brands, there’s a growing need to close the gap between how artists are compensated across platforms. For too long, traditional broadcasters have operated under royalty models that didn’t reflect the scale—or the reach—of their digital streaming operations.
With this deal, we could be looking at a future where there’s more alignment between terrestrial radio, streaming-only platforms, and how each pays out royalties. And that could signal a more equitable industry overall.
So, What’s Next?
The proposed framework still needs to go through final approval processes, which could take months. But the fact that NAB and SoundExchange have come this far signals a mutual recognition: the streaming future is now, and the financial systems supporting it need to be fair, modern, and built for scale.
For us at Sunset, it’s about more than rates and regulations—it’s about ensuring that every spin, every stream, and every digital drop counts for the creators behind the music. We’ll be keeping our ears to the ground as this story develops, and you can count on us to break it down every step of the way.
Until then, keep the volume up. The winds of change are playing in the key of progress.
