Public Radio Music Stations Face Uncertainty Over MLC

RADIO ONLINE | Friday, August 1, 2025 | 3:03pm CT

Paragon Media Strategies

Public radio music stations across the U.S. face growing uncertainty over how they will cover critical music licensing costs (MLC) beyond 2025, according to new reporting from Paragon Media Strategies CEO Mike Henry.

While the current licensing agreements that allow public stations to play copyrighted music are in place through the end of 2025 -- and in some cases negotiated through 2027 -- how those licenses will be funded after this year remains unresolved.

Historically, the Corporation for Public Broadcasting (CPB) has covered music rights costs through bulk agreements with performing rights organizations (PROs) such as ASCAP, BMI, SESAC, GMR, and Harry Fox Agency. Those agreements, now valued at approximately $8.7 million annually, are fully negotiated through December 31, 2027. However, CPB's funding only covers those fees through the end of calendar year 2025.

A separate agreement with SoundExchange, which handles digital performance royalties for recordings, has been extended through 2030. Yet like the PRO licenses, the payment source for that agreement beyond 2025 is also unclear.

"With the elimination of CPB funding, we are working to address a number of issues affecting stations, including music rights," CPB said in a statement. "We are in negotiations with the rights holding organizations to determine next steps on ensuring that stations will continue to be covered by the agreements."

CPB added that while long-term contracts are in place, identifying who will pay for 2026 and beyond is an ongoing concern.

Conversations are reportedly underway between CPB, NPR, and major public music stations to find a solution that will preserve uninterrupted access to music content. Mike Henry emphasized that Paragon will continue to monitor developments and provide updates.

Without a sustainable funding plan, public music stations could be forced to reconsider their music programming models -- potentially impacting audiences nationwide who rely on these services for classical, jazz, indie, and other curated music formats.