Records Get Pricier: Royalties Rise with Living Costs
Published Date: 12/1/2025
Rule
Summary
Starting January 1, 2026, royalty rates for making and selling physical music records and permanent downloads will go up to keep pace with the cost of living. This change affects music makers, distributors, and anyone paying these royalties, ensuring payments reflect inflation. The new rates kick in December 1, 2025, and apply through the whole year of 2026.
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Higher Royalties for Physical & Downloaded Records
Starting December 1, 2025, royalty rates for making and distributing physical phonorecords and Permanent Downloads increase to 13.1 cents per work or 2.52 cents per minute (whichever is larger). These rates apply for the period January 1, 2026 through December 31, 2026 and must be paid by licensees who make, distribute, or authorize those phonorecords and Permanent Downloads.
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Key Dates
Department and Agencies
Related Federal Register Documents
2026-16707, Distribution of 2023 Cable Royalty Funds
The Copyright Royalty Judges solicit comments on a motion of Allocation Phase Parties for partial distribution of 2023 cable royalty funds.
2026-16710, Distribution of Satellite Royalty Funds
The Copyright Royalty Judges solicit comments on a motion of Allocation Phase Parties for partial distribution of 2023 satellite royalty funds.
2026-16709, Distribution of Satellite Royalty Funds
The Copyright Royalty Judges (Judges) announce the commencement of proceedings to determine distribution of 2023 royalties deposited with the Copyright Office under the satellite carrier license. The Judges also set the date by which all parties wishing to participate and share in the distribution of satellite retransmission royalties for 2023, must file Petitions to Participate and pay the accompanying $150 filing fee. The Judges seek a single Petition to Participate in either or both the allocation phase and the distribution phase of the satellite royalty proceeding. Any party that fails to file a petition to participate by the time set forth in this notice shall not be a participant at any stage of either proceeding, unless the Judges accept a late petition to participate pursuant to 37 CFR 351.1(d).
2026-16708, Distribution of Cable Royalty Funds
The Copyright Royalty Judges (Judges) announce the commencement of proceedings to determine distribution of 2023 royalties deposited with the Copyright Office under the cable service statutory license. The Judges also set the date by which all parties wishing to participate and share in the distribution of cable retransmission royalties for 2023 must file Petitions to Participate and pay the accompanying $150 filing fee. The Judges seek a single Petition to Participate in either or both the allocation phase and distribution phase of the cable royalty proceeding. Any party that fails to file a petition to participate by the time set forth in this notice shall not be a participant at any stage of the proceeding, unless the Judges accept a late petition to participate pursuant to 37 CFR 351.1(d).
2026-13996, Determination of Rates and Terms for Making and Distributing Phonorecords (Phonorecords V)
Starting in 2028, new rules will set how much music makers pay to copy and share songs on CDs, vinyl, and digital formats until 2032. Musicians, record companies, and streaming services will all feel the impact as royalty rates and terms get updated. If you want to speak up, you’ve got until August 10, 2026, to send in your comments!
2026-06055, Adjustment to Sound Recordings by New Subscription Services and Ephemeral Recordings To Facilitate Those Performances License 2026 Royalty Rates
Starting January 1, 2026, new subscription music services will pay slightly higher royalties for playing songs online, thanks to a cost-of-living update. These changes, effective through 2030, adjust fees based on inflation to keep payments fair for artists and rights holders. If you run or use these services, expect a small bump in what you pay or earn starting March 30, 2026.
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Starting January 1, 2026, satellite TV companies will pay 2.9% more in royalty fees for the shows they retransmit, thanks to a cost of living boost. This change affects satellite carriers and helps keep payments fair as prices rise. The new rates kick in for all of 2026, making sure creators get their due while satellite services keep rolling.
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