Songwriter Streaming Royalties: Read What Every Streamer, Publisher & Songwriter Group Has Proposed
The US Copyright Royalty Board is considering how much streaming services should pay songwriters and publishers in mechanical royalties for 2028 to 2032. Services, publishers and songwriter groups have submitted competing proposals, and a trial is due to begin in spring 2027; the decision matters beyond the US because it is one of the largest music markets.
Mechanicals account for roughly half of songwriters’ streaming income, and the board’s formula helps determine the total royalty pool, alongside performance royalties. The dispute follows Spotify and Amazon reclassifying popular subscriptions as bundles, which reduced mechanical payments; the National Music Publishers Association estimates the changes have cost songwriters and publishers about $500 million since spring 2024. Phono IV’s rates for 2023 to 2027 were agreed voluntarily, but Phono V is shaping up to be more contentious.
- US royalty proposals will shape songwriter payments from 2028 to 2032.
- Mechanical royalties make up about half of streaming income for songwriters.
- Publishers estimate bundle changes have cost $500 million since 2024.
New here? Start with this
When a song is streamed, payments are made for the recording and for the underlying composition: the music and lyrics. Mechanical royalties are paid to songwriters and music publishers for use of that composition. In the US, the Copyright Royalty Board sets the rules for these payments in periods known as “Phono” proceedings.
Streaming services, publishers and songwriter groups have different interests in how the payment formula is set. The formula helps determine the overall pool of mechanical royalties, alongside separate payments for public performance of songs. Changes to subscription plans have also become part of the dispute: some services have classified popular plans as bundles, which publishers say has reduced mechanical payments.
The rates agreed for 2023 to 2027 were settled voluntarily, while the next rate period is being contested. The outcome will affect songwriters’ and publishers’ income in the US, a major music market, and could influence discussions elsewhere.