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
2026-06055 — 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.
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.
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.
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.
2026-04630 — 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, noncommercial educational webcasters will follow new rules for paying to play music online, lasting through 2030. These updated rates and terms come from a deal between music rights groups and college broadcasters, making sure artists get fair pay while schools keep streaming. The changes kick in on March 10, 2026, so webcasters should get ready to follow the new payment rules.
2025-21579 — Cost of Living Adjustment to Public Broadcasters Compulsory License Royalty Rate
Starting January 1, 2026, certain noncommercial college and university radio stations not linked to NPR will pay a slightly higher royalty fee for playing music from SESAC and GMR catalogs. This increase matches the cost of living rise or a minimum 1.5% bump, whichever is higher. The new rates kick in on November 28, 2025, and apply through the end of 2026, helping keep royalty payments fair and up-to-date.
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