Royalty Standoff Pushes AccuRadio To Chapter 11.

AccuRadio, one of online radio’s longest-running independent brands, has filed for Chapter 11 bankruptcy protection in Chicago. The human-curated streaming platform, launched in 2000, says the move comes after failed settlement talks with SoundExchange and an “untenable” royalty structure that disadvantages smaller streamers.

“AccuRadio has spent nearly 25 years building a well-loved music service under a royalty system that seems rigged—perhaps unintentionally—against small and midsize streamers,” founder and CEO Kurt Hanson said in a release.

The bankruptcy filing follows ongoing litigation with SoundExchange, which filed suit in mid-2024 despite what Hanson characterized as “months of cooperative negotiations” aimed at creating a workable payment plan. “We were led to believe our latest proposal would be accepted with minor changes,” Hanson said. “But SoundExchange ultimately rejected it.” He noted AccuRadio has paid more than $13.5 million to SoundExchange over the years and has resumed full current payments.

Hanson also pointed to structural issues in the Copyright Royalty Board’s rate-setting process, which he says effectively shuts out smaller services due to the high legal costs involved in participation. “The system favors the largest corporations,” he said.

Paul Maloney, EVP of Music Programming, argued that the current royalty landscape primarily benefits superstar artists signed to the Big Three labels, Universal, Sony, and Warner, leaving independent and regional acts sidelined. “AccuRadio offers a platform for thousands of working musicians ignored by algorithm-driven playlists,” Maloney said. “We program nearly 1,400 human-curated channels that take creative risks and highlight underrepresented artists. That’s becoming harder to sustain under the current model.”

Despite the Chapter 11 filing, AccuRadio plans to continue operations. “This was not an easy decision—especially as our revenues are up and we’ve returned to profitability,” Hanson said. “But this move will help us emerge stronger and remain a home for curated music discovery.”