Public Radio Stations Face New Digital Music Royalty Rules Through 2030
Published Date: 3/10/2026
Rule
Summary
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.
Analyzed Economic Effects
4 provisions identified: 0 benefits, 3 costs, 1 mixed.
Fixed annual lump-sum royalty schedule
From January 1, 2026 through December 31, 2030, the total license fee for website performances by Public Broadcasters is a fixed lump sum: $950,000 for 2026, $975,000 for 2027, $1,000,000 for 2028, $1,025,000 for 2029, and $1,050,000 for 2030. This fee applies to all covered website performances up to a Music Aggregate Tuning Hours (Music ATH) cap of 310,000,000 per year. The Final Rule is effective March 10, 2026.
Advance payment schedule and fallback payers
CPB must pay the yearly License Fee in advance, with the first payment due December 31, 2025, and annual advance payments due December 31 each year through December 31, 2029. If CPB cannot pay for a year it may nominate NPR or a third party by written notice before December 1, and that nominee must accept by December 15 and pay by December 31 of the preceding year. If the Collective does not receive the License Fee by the December 31 deadline, the subpart’s terms are unavailable that year and individual Public Broadcasters making website performances must pay applicable royalties under subparts A and B.
Limits on contractors and enforcement rights
A Public Broadcaster may hire a third party to deliver website performances, but any contract must require the contractor to follow the statutory licenses and this subpart, bar the contractor from making website performances or creating libraries on its own behalf, bar sublicensing, and make the Collective an intended third-party beneficiary with enforcement rights. The Collective can terminate treatment as a Public Broadcaster for a station that materially violates the rules, and if CPB fails to cure a material breach within 30 days the Collective may terminate rights for all Public Broadcasters.
5% allocation for ephemeral recordings
Under the rule, the Collective must credit 5% of all royalty payments under this subpart as payment for Ephemeral Recordings and allocate the remaining 95% to section 114 performance royalties. Ephemeral Recordings that are necessary and commercially reasonable for noninteractive digital transmissions are included in that 5% allocation.
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Key Dates
Department and Agencies
Related Federal Register Documents
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