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
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