Music Royalties Rise Slightly with Inflation Adjustment
Published Date: 3/30/2026
Rule
Summary
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.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 4 costs, 0 mixed.
Per‑Subscriber Royalty Rates Set for 2026
If you run a new subscription music service, you must pay a monthly royalty of $0.0241 per subscriber for stand‑alone contracts and $0.0401 per subscriber for bundled contracts starting for the 2026 rate year. Those 2026 amounts reflect the CPI-U adjustment based on figures published before December 1, 2025.
Rates Apply Jan 1, 2026–Dec 31, 2030
The adjusted royalty rates apply for the period January 1, 2026, through December 31, 2030, and the rule is effective March 30, 2026. If you are a licensee, these rates should be used for that entire applicability period.
Annual CPI-U Formula Controls Future Rates
Future annual royalty rates are calculated using a CPI‑U formula: For Stand‑Alone Contracts use (1 + (Cy - 315.664)/315.664) × $0.0234, and for Bundled Contracts use (1 + (Cy - 315.664)/315.664) × $0.0390, where Cy is the CPI‑U published by the Secretary of Labor before December 1 of the preceding year. Adjusted rates are rounded to the nearest fourth decimal place; the CPI‑U used for 2026 was 324.800.
Royalties Cover Ephemeral Reproductions
The royalty adjustment applies to both digital performances of sound recordings by new subscription services and to the making of ephemeral recordings necessary to facilitate those transmissions. If you are a licensee, you owe royalties for the ephemeral reproductions as part of the license.
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Key Dates
Department and Agencies
Related Federal Register Documents
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.
2026-16709, 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!
2026-04632, 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, 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.
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