Streaming services and songwriters clash over US royalty rates for 2028-2032
Opening Phonorecords V proposals range from keeping today's 15.35% headline rate to a 20%-of-revenue demand.
Opening proposals in the US Copyright Royalty Board's Phonorecords V case, which sets mechanical royalty rates for 2028 to 2032, show how far apart the two sides are.
Spotify proposes keeping the current 15.35% headline rate with no other changes. Apple proposes adopting the Phonorecords IV settlement as the rates and terms for the new period.
On the other side, the NMPA and NSAI propose that services pay the greatest of four amounts: 20% of service revenue, 40% of total content cost, $2.40 per subscriber, or $0.004 per play. A separate songwriter coalition wants a flat $0.0030 per play, covering free tiers too, adjusted for inflation.
The board is expected to issue its initial determination by December 17, 2027. These filings are weeks old rather than breaking, but they set the frame for the next round.
