Pioneering radio network files for Chapter 11 bankruptcy following in iHeartRadio, Audacy footsteps
Company founder and CEO Kurt Hanson confirmed Wednesday's bankruptcy filing was the result of a failed legal settlement with rights organization SoundExchange.
SoundExchange had filed a lawsuit against Chicago-based AccuRadio for unpaid royalties owed to artists and labels last year.
'AccuRadio has spent almost 25 years building an innovative and well-loved music streaming service while facing royalty obligations that climbed to levels that seem to suggest the system is rigged, perhaps inadvertently, against small and midsize streamers,' Hanson said in a statement.
As of now, the radio platform owes the non-profit organization more than $10 million, The Chicago Tribune reported.
The company also owes around $200,000 each to the ASCAP (American Society of Composers, Authors, and Publishers) and Broadcast Music Inc (BMI).
Known for being one of the earliest internet radio platforms, AccuRadio features music channels from over 60 genres, including playlists dedicated to Taylor Swift, The Beatles, and Adele.
It receives more than one million monthly listeners.
Company founder and CEO Kurt Hanson confirmed the filing was the result of a failed legal settlement with SoundExchange
AccuRadio and SoundExchange have had a long history since the organization was created in 2003.
SoundExchange has received more than $13.5 million in royalties over the years, but the ongoing lawsuit claimed AccuRadio stopped the payments in 2018.
Despite creating a payment plan in 2020, SoundExchange accused AccuRadio of not following it, resulting in last year's suit filing.
The two went head to head over settlements, which ultimately fell through.
'We were extremely disappointed that we couldn't reach a negotiated settlement,' Hanson said.
'Furthermore, AccuRadio resumed full current payments to SoundExchange many months ago and continues to keep current with ongoing obligations.'
The company's bankruptcy protection filing was similar to those filed by iHeartRadio's parent company iHeartMedia and Audacy in 2018 and 2024.
Both companies exited bankruptcy afterwards, and Hanson believes AccuRadio will do the same.
AccuRadio features music channels from over 60 genres, including playlists dedicated to Taylor Swift and The Beatles
'Revenues have been consistently rising, and we are now profitable,' Hanson explained.
'Filing wasn't easy, but we believe AccuRadio will emerge healthier, more resilient, and better able to serve our loyal listeners and the artists we champion.'
DailyMail.com has reached out to AccuRadio for comment about the bankruptcy filing.
It is one of many companies that have filed for bankruptcy this year, including various restaurants and fast food chains.
It is not the only company to file for bankruptcy this year.
Earlier this week, celebrity hotspot Planta filed for Chapter 11 bankruptcy.
Hooters filed for bankruptcy in March the second time in five years.
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