Cable Bundles' New Music Streaming Royalties Defined Through 2030
Published Date: 3/10/2026
Rule
Summary
Starting January 1, 2026, new subscription services that play music as part of cable or satellite TV bundles will follow fresh rules on how much they pay for digital music performances and temporary copies. These rules, effective through 2030, set clear rates and terms agreed upon by major music and service players, making sure artists and rights holders get fair pay. If you’re a streaming service or music rights owner, these changes mean smoother, fairer payments for the next five years.
Analyzed Economic Effects
6 provisions identified: 2 benefits, 2 costs, 2 mixed.
Annual $100,000 minimum fee requirement
Each Licensee must pay an annual, non-refundable minimum fee of $100,000 on January 31 of each calendar year in which the Service is provided under the statutory licenses. That $100,000 payment is recoupable and will be credited against royalties due in the same calendar year.
Monthly per-subscriber royalty rates
For the license period Jan 1, 2026 through Dec 31, 2030, each Licensee must pay per-subscriber royalty rates equivalent to $0.0234 for Stand-Alone Contracts and $0.0390 for Bundled Contracts as the 2026 base, with annual adjustments based on the Consumer Price Index for All Urban Consumers (CPI-U) using the formula tied to the November 2024 CPI-U (315.664). The Copyright Royalty Judges will publish adjusted fees in the Federal Register at least 25 days before each January 1 during the period.
Collective distribution and reporting rules
The designated Collective (for the period, SoundExchange, Inc.) must promptly distribute royalties to Copyright Owners and Performers who provide the necessary identification information. If a Licensee fails to provide a compliant Report of Use and the Collective's board decides further efforts are unwarranted, the Collective may distribute that Licensee's royalties based on Reports of Use filed by other Licensees for the same calendar year.
How royalties are split (95% / 5%)
All royalty payments collected must be credited with 5% allocated to Ephemeral Recordings and the remaining 95% credited to performance royalties under 17 U.S.C. 114. Ephemeral Recordings necessary and commercially reasonable for the Service are included in that 5% allocation.
Audit rights and procedures for royalty verification
Any entity entitled to royalties may verify payments by auditing the Payor once a year for any of the prior three calendar years. Audits must be by a qualified CPA, notice of intent to audit must be filed (and published) with the Copyright Royalty Judges, and if the auditor finds a net underpayment of 10% or more the Payor must pay the reasonable audit costs and the underpayment with interest (per Sec. 380.2(d)).
Scope and scope-limits for Services covered
The rule defines covered "Service" narrowly: a non-interactive, audio-only subscription service transmitted to residential TV subscribers via a Provider (cable or satellite), where subscribers do not pay separately for audio and the technology cannot track which individual sound recordings each consumer receives. Current contracts in effect as of the part's effective date remain subject to special treatment if tracking capabilities change later.
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Key Dates
Department and Agencies
Related Federal Register Documents
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).
2026-16709, 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).
2026-16710, 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.
2026-16707, 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.
2026-13996, 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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