Stay
UpdateD
Join the BPC
Email List
Stay up to date on exciting projects and upcoming events from the Black Promoters Collective.
Free music streaming service AccuRadio has filed for bankruptcy, citing $10 million in debts to SoundExchange and failed settlement talks in the organization’s lawsuit against the streamer over unpaid artist royalties.
AccuRadio, an ad-supported platform that describes itself as “the only online music streaming service curated by human beings, not algorithms,” sought bankruptcy protection in a Wednesday (May 14) petition to the federal court in its home city of Chicago.
The bankruptcy petition says AccuRadio owes $10 million to SoundExchange, the nonprofit that collects and distributes royalties to record labels and artists. SoundExchange sued AccuRadio last summer, alleging the streamer had an undisclosed amount of unpaid royalties dating back to 2018.
AccuRadio contests those claims, saying it’s been a “consistently reliable SoundExchange licensee for the vast majority of the past two decades.” The company put out a press release Wednesday, blaming its bankruptcy on failed settlement talks in the litigation.
“We were led to believe that our latest proposal would be accepted by SoundExchange with only minor modifications,” wrote AccuRadio’s founder/CEO, Kurt Hanson. “However, eventually SoundExchange altered its position and rejected that proposal. We were extremely disappointed that we couldn’t reach a negotiated settlement.”
AccuRadio’s bankruptcy petition says the company has less than $1 million in assets, while its liabilities total $10.5 million. In addition to the $10 million SoundExchange debt, AccuRadio says it owes more than $400,000 to royalty collectors BMI and ASCAP.
The streaming service has filed for Chapter 11 bankruptcy. This means that rather than fold completely, AccuRadio hopes to restructure, pay off its debts and continue operations in the future.
“Filing for bankruptcy protection wasn’t an easy decision, especially since our revenues have been consistently improving and we have returned to profitability,” says Hanson in the AccuRadio press release. “But we are confident that AccuRadio will emerge from it healthier and more resilient and will continue to be an outlet for human-curated music that our listeners desire and cherish.”
AccuRadio has been around since 2000. According to the company, it offers more than 1,400 ad-supported, curated music channels free of charge.
Stay up to date on exciting projects and upcoming events from the Black Promoters Collective.
©2024 Black Promoters Collective (BPC) All Rights Reserved.