Commercial AM/FM stations pay roughly 1.7% to 2.5% of their gross revenue in blanket license fees to play songs, split among the performance rights organizations that represent songwriters. That is the short answer to how much radio stations pay to play a song, but it only covers terrestrial broadcast. Digital services like Pandora pay per listener per play, and satellite radio pays a percentage of subscription revenue that currently runs close to 20% for SiriusXM’s music-channel plans. No radio format pays a flat dollar amount per spin.
Why AM/FM Pays Songwriters but Not Performers
Every recorded song carries two separate copyrights. One covers the musical composition, meaning the melody and lyrics, and belongs to the songwriter and publisher. The other covers the sound recording itself, the specific performance captured in the studio, and usually belongs to the label or artist.
U.S. law treats these two rights very differently on the radio. Terrestrial AM/FM stations owe royalties only for the composition. They pay nothing for the sound recording. When a song plays on your local FM station, the songwriter gets paid; the singer and the label do not receive anything from that broadcast.1Congress.gov. On the Radio: Public Performance Rights in Sound Recordings
Broadcasters have long argued that airplay works as free promotion for record sales and concert tickets, and Congress has left the exemption in place. Digital and satellite services get no such break. They operate under a statutory license that requires payment for both copyrights, which is the main reason their costs run higher.
Blanket License Rates for Commercial Terrestrial Stations
Stations don’t negotiate song by song. They pay blanket license fees to performance rights organizations (PROs), which pool the money and distribute it to their affiliated songwriters and publishers. Four PROs operate in the United States: ASCAP and BMI, both large general-repertoire organizations, plus the smaller SESAC and Global Music Rights. A license from one doesn’t cover songs in another’s catalog, so most commercial stations carry all four.2BMI. Music Licensing
Each PRO sets its rate as a percentage of the station’s gross revenue, through negotiation or, when that fails, through a federal rate court. BMI’s blanket rate for terrestrial radio moves up to 2.20% of gross revenue for the 2026–2029 period, from 1.78% under the previous agreement. Add in ASCAP, SESAC, and GMR, and most commercial stations end up paying roughly 1.7% to 2.5% of revenue combined.
Because the fee is tied to revenue, dollar totals swing wildly. A major-market station pulling in tens of millions in advertising revenue pays hundreds of thousands a year in licensing fees. A small rural station with modest ad sales might pay a few thousand. The percentage stays roughly the same; reach and advertising rates decide the total.
What a Single Spin Is Actually Worth
Most people asking this question want a per-play number. The honest answer is that no single number applies to terrestrial radio, because the PROs don’t cut checks per spin. They collect the blanket fees, pool the money, and divide it among songwriters based on weighted airplay data. Several factors shape what any one play is worth:
- Station size and market. A play on a major commercial station with millions of listeners generates a larger royalty credit than the same play on a college station.
- Duration. A 30-second clip pays less than airing the full track.
- Song popularity. Some PROs apply bonus multipliers for heavy airplay. BMI, for one, has a hit-song bonus for tracks exceeding 95,000 performances in a single quarter.
- Longevity. Songs that sustain heavy rotation over long periods can reach “standard” status with enhanced rates.
The upshot: a single spin on a top-40 station in a major market can be worth several dollars to the songwriter, while the same song on a small-town AM station might earn a fraction of a cent. Performers and labels earn zero from any terrestrial play under current law.
Internet Radio and Webcasters
Digital services pay for both copyrights, and the sound recording portion is set by the Copyright Royalty Board, a three-judge panel within the Library of Congress.3Copyright Royalty Board. Copyright Royalty Board SoundExchange is the sole federally designated organization that collects those sound recording royalties from services like Pandora and iHeartRadio and pays out to artists and rights owners.4SoundExchange. About SoundExchange
Internet radio generally pays on a per-performance basis, where one performance equals one listener hearing one song. The CRB published final rules in March 2026 governing commercial and noncommercial webcaster rates for 2026 through 2030.5Copyright Royalty Board. Rate Proceedings The per-play amounts are fractions of a cent, but they compound quickly across thousands of simultaneous listeners. A song streamed to 100,000 listeners in a single play generates a real royalty payment even at a fraction-of-a-cent rate. On top of the SoundExchange fees, webcasters still pay the PROs separately for composition rights.
That per-performance model creates a cost curve that scales directly with audience size, which is why large services like Pandora face substantial annual royalty obligations while a small hobby webcaster may pay only the annual minimum.
Satellite Radio
SiriusXM pays for sound recordings as a percentage of revenue rather than per play. The company’s current U.S. Music Royalty Fee runs 19.98% of the subscription price for satellite plans that include music channels, up significantly from earlier CRB-set rates.6SiriusXM. U.S. Music Royalty Fee Streaming-only plans carry a lower rate of 8.8%. Those percentages cover the sound recording license only; SiriusXM pays the composition PROs on top. A substantial share of every subscriber’s monthly bill flows straight into music royalties.
Noncommercial and Public Radio
Public radio, college stations, and other noncommercial broadcasters pay reduced fees that reflect limited revenue. These stations typically pay flat annual amounts or steeply discounted percentages rather than the full commercial rate.
For digital webcasting by noncommercial educational stations, the Copyright Royalty Board set the annual minimum at $800 per channel for 2026, rising to $1,000 by 2030. That minimum covers up to 160,000 aggregate tuning hours per month per channel. Stations that exceed the cap shift to the standard commercial webcasting rate schedule for the rest of the year.7GovInfo. Federal Register – Determination of Rates and Terms for Digital Performance of Sound Recordings (Noncommercial Educational Webcasters 2026-2030) Noncommercial webcasters can also pay an additional $100 annual proxy fee to waive detailed reporting requirements.
For over-the-air public radio, PRO licenses were renegotiated through NPR and PBS following changes at the Corporation for Public Broadcasting, with current agreements running through December 2027. SoundExchange’s agreement with public media stations took effect January 1, 2026 and extends through 2030.
The Bill That Would Make AM/FM Pay Performers
The United States is an outlier in letting terrestrial broadcasters skip payment for sound recordings. Most other countries require radio to compensate both songwriters and performers. The American Music Fairness Act, reintroduced in the 119th Congress as S.326 in January 2025, would create a federal performance right for sound recordings on terrestrial radio for the first time.8Congress.gov. S.326 – American Music Fairness Act
The bill was referred to the Senate Judiciary Committee and has not advanced further as of early 2026. Similar legislation has been introduced repeatedly over the past two decades without passing. Broadcasters argue that radio promotion still benefits artists and that the added cost would harm local stations. Artists and labels counter that the promotional argument no longer justifies billions in uncompensated use. If the bill passes, terrestrial stations would pay significantly more, because they would need to license sound recordings on top of compositions. Until then, the terrestrial exemption stands.1Congress.gov. On the Radio: Public Performance Rights in Sound Recordings