Commercial Broadcasters Get Updated Nonsubscription Music Royalty Terms
Published Date: 3/10/2026
Rule
Summary
Starting January 1, 2026, commercial broadcasters will follow new rules for paying royalties when they play music online without subscriptions. These rules set fair rates and terms for digital performances and temporary copies of songs, lasting through 2030. This means broadcasters and music rights groups like SoundExchange have a clear, agreed plan for sharing money from digital music plays.
Analyzed Economic Effects
5 provisions identified: 1 benefits, 4 costs, 0 mixed.
Per-Play Royalty Rates Set for 2026–2030
If you operate a commercial broadcaster that streams music without subscriptions, you must pay per-play royalties of $0.0028 per Performance in 2026, $0.0029 in 2027, $0.0030 in 2028, $0.0031 in 2029, and $0.0032 in 2030 for each Performance.
Annual Minimum Fee Per Channel/Station
Commercial broadcasters must pay a nonrefundable minimum fee per channel or station each year: $1,100 in 2026, $1,150 in 2027, $1,200 in 2028, $1,250 in 2029, and $1,250 in 2030. A broadcaster's maximum aggregate minimum fee in any year is 100 times the applicable per-channel amount.
Payment Timing and Late-Fee Rules
Commercial broadcasters must pay royalties monthly to SoundExchange, Inc., with payments and Reports of Use due on or before the 30th day after the end of the month. Minimum annual payments are due by January 31 of the license year. Late fees accrue at 1.5% per month (or the highest lawful rate), with special audit-period accrual at 1% and a cap on late fees for underpayments at 75% of the principal underpayment; the Collective may waive or lower late fees in some cases.
Recordkeeping and Audit Procedures for Broadcasters
Commercial broadcasters must keep complete, accurate royalty records for at least the prior three calendar years and, starting January 1, 2027, must obtain necessary data from third-party transmission vendors or contractually require delivery of that data. Verifying entities may audit a payor once per year for any of the prior three years; audits must be done by a qualified CPA, and the auditor's written report governs underpayment/overpayment adjustments. The verifying entity pays audit costs unless an underpayment of 10% or more is found, in which case the payor bears the audit costs and any underpayment plus applicable late fees.
How Royalties Are Distributed and the Collective Designated
The Judges designate SoundExchange, Inc. as the Collective to receive payments and distribute royalties; 5% of all royalty payments under this subpart must be credited as payment for Ephemeral Recordings and the remaining 95% credited to section 114 performance royalties. The Collective must promptly distribute royalties to identified Copyright Owners and Performers, retain unclaimed funds in a segregated trust for three years, and use best efforts to locate entitled recipients.
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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).
2026-16707, 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.
2026-16709, 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.
2026-13996, 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.
Previous / Next Documents
Previous: 2026-04631, Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
Starting January 1, 2026, new rules set how much Educational Media Foundation pays for playing music online and making temporary copies to do it. These rules last until the end of 2030 and come from a deal everyone agreed on, so no one objected. This means clearer costs and terms for digital music use, effective March 10, 2026.
Next: 2026-04633, Determination of Rates and Terms for Digital Performance of Sound Recordings and Making of Ephemeral Copies To Facilitate Those Performances (Web VI)
Starting January 1, 2026, certain public radio stations will follow new rules for paying royalties when they play music online and make temporary copies to do so. These rules, agreed upon by major players like NPR and SoundExchange, set clear rates and terms through 2030, helping everyone know what to expect. The changes kick in March 10, 2026, and could affect how much stations pay for digital music performances.