From Music Business Worldwide · · 2m
Streaming Services Propose 2028-2032 Royalty Rates for Songwriters
Amazon, Spotify, Apple and others file rate proposals for songwriters' royalties in 2028-2032.
In brief
Amazon, Spotify, Apple and others file rate proposals for songwriters' royalties in 2028-2032. Streaming services propose 13.4-15.35% royalty rates for songwriters from 2028-2032, with publishers demanding 40% of what record labels pay. Originally reported by Music Business Worldwide.
Streaming Services File Rate Proposals
Spotify, Apple, Amazon, Pandora, and Google filed their rate proposals in Phonorecords V, the US Copyright Royalty Board proceeding that will set mechanical royalty rates for on-demand streaming services from January 1, 2028.
Current Royalty Rates
The current headline rate is 15.3% of service revenue, rising to 15.35% in 2027, with a floor of 60 cents per subscriber for standalone subscriptions.
Publishers Demand 40% of Record Label Payments
The National Music Publishers’ Association and Nashville Songwriters Association International want services to pay the greatest of 20% of revenue, 40% of what they pay record labels, $2.40 per subscriber, or $0.004 per play.
Amazon Wants Lower Rates
Amazon proposes a headline rate of 13.4% of service revenue for standalone subscriptions and bundles, down from 15.35% in 2027, with lower TCC rates and per-subscriber minimums.
Spotify Proposes Current Rates
Spotify wants the 2027 rates, including the 15.35% headline rate, kept in place from 2028 to 2032, with no changes to the current rules.
Apple Proposes Current Rates
Apple proposes keeping the 2027 rates, including the 15.35% headline rate, for 2028-2032, with no changes to the bundling rules.
Google Proposes Current Rates
Google wants to keep the 2027 rates, including the 15.35% headline rate, for 2028-2032, with a new 'Allocation' rule for revenue calculations.
Pandora Proposes Current Rates
Pandora wants to keep the 2027 rates, including the 15.35% headline rate, for 2028-2032, with four smaller changes to the rules.
Amazon Proposes Rate Cuts
Amazon wants to cut the headline rate to 13.4% for standalone subscriptions, lower TCC rates, and reduce per-subscriber minimums to 52 cents.
Publishers Want 40% of Record Label Payments
The publishers want services to pay the greatest of 20% of revenue, 40% of what they pay record labels, $2.40 per subscriber, or $0.004 per play.
What Happens Next
The parties can file amended written direct statements until December 21, 2026, and must respond by February 1, 2027, with a hearing scheduled for March 22 to April 15, 2027.
The essence
Streaming services propose 13.4-15.35% royalty rates for songwriters from 2028-2032, with publishers demanding 40% of what record labels pay.
