Songwriter Coalition Proposed New Per-Stream Royalty Rate
A songwriter group filed a proposal with the US Copyright Royalty Board to set mechanical royalties at $0.003 per stream.
Updated on Oct. 8, 2026 in Music — General
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A coalition of songwriters has filed a proposal with the US Copyright Royalty Board requesting a flat mechanical royalty rate of $0.003 per stream. The proposal aims to update songwriter compensation structures for the 2028-2032 period.
Why it matters
The proposal seeks to address long-standing songwriter concerns regarding financial sustainability in the modern music industry. By replacing existing statutory formulas with a per-stream rate, proponents hope to ensure fairer compensation for digital music usage.
The proposal sets a mechanical royalty of $0.003 per stream, which would yield $3,000 for one million streams. This measure would include annual inflation adjustments through 2032.
The players
Copyright Royalty Board
This is a US government body responsible for determining statutory royalty rates and terms for copyright-protected works.
National Music Publishers' Association
This is a trade association representing American music publishers and their songwriter partners.
Nashville Songwriters Association International
This is a prominent professional organization dedicated to protecting the rights and interests of songwriters worldwide.
Digital Media Association
This is a trade group representing major digital music and media companies.
The details
The coalition is requesting that mechanical payments be calculated separately, specifically excluding performance-royalty deductions. This move follows a formal submission process that was confirmed by the Digital Media Association on October 6.
Timeline
The Copyright Authors coalition filed their proposal on October 5, 2026.
The Digital Media Association confirmed receipt of party proposals on October 6, 2026.
The proposed royalty rates are slated to take effect in 2028.
The Phonorecords V proceeding is currently in the discovery stage.
Industry Dynamics
The Phonorecords V proceeding determines the legal framework for songwriter compensation across the streaming era. This filing highlights the ongoing tension between songwriter advocacy groups and digital platforms over the value of mechanical versus performance royalties.
While this filing impacts how songwriters are paid, it may influence the cost of digital music services for consumers in the future. Listeners should expect potential changes in royalty distribution models to be debated as the Phonorecords V proceeding advances toward its 2028 start date.
The takeaway
The ongoing Phonorecords V proceeding marks a critical shift in how digital streaming royalties are negotiated. Songwriters are pushing for simpler, per-stream calculations to ensure long-term sustainability within the music ecosystem.
Further reading
For more context on the music industry's regulatory environment, visit the Music — General section.
Source note: This article includes information reported by Themusicnetwork.
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