The number at the center of the Phonorecords V rate fight can affect how much streaming services pay for the use of musical compositions, and, in turn, the royalties available to songwriters and publishers. The proposals now on file show a wide gap between what songwriter and publisher groups want and what streaming services are proposing.These are opening proposals, not final rates or rulings. The Copyright Royalty Board (CRB) will decide the rates for 2028 through 2032 after a multi-year proceeding.What Phonorecords V isWhat the CRB doesThe U.S. Copyright Royalty Board sets statutory royalty rates and terms for certain uses of copyrighted music. Phonorecords V is the proceeding for docket 25-CRB-0013-PR, covering the period from January 1, 2028, through December 31, 2032.What the mechanical royalty covers on streamingWhen an eligible streaming service reproduces and delivers a musical composition, the use can generate a mechanical royalty for the composition’s rights holders. That composition is the underlying song, the music and lyrics, not the particular sound recording.This distinction matters. A recording artist may perform a track without owning the composition, while a songwriter may own a share of the composition without owning the recording. The money and collection routes for each are different.The 2028–2032 windowThe CRB proceeding will set the applicable rates for five years. Services filed written proposals on October 5, 2026, and public redacted versions appeared on October 7, according to Music Business Worldwide’s coverage.How a rate proceeding worksParticipants submit proposals and supporting arguments. They may offer evidence about the market, costs, past agreements, and how different rate structures would work. The CRB considers the record developed in the proceeding and issues a determination.In other words, a proposal is a party’s requested outcome, not a rule that services or songwriters should treat as settled. The final decision may differ from any one proposal.What each side wantsThe publisher/songwriter coalition proposalThe National Music Publishers’ Association (NMPA) and Nashville Songwriters Association International (NSAI) propose that streaming services pay the greatest of four measures:
  • 20 percent of service revenue
  • 40 percent of Total Content Cost (TCC): the amount a service pays for sound-recording rights
  • $2.40 per subscriber per month
  • $0.004 per play
    • As reported by Music Business Worldwide, the proposal’s per-subscriber and per-play amounts would be adjusted annually for inflation. The “greatest of” structure is important: it means the applicable amount would be whichever of the four calculations produces the highest royalty under the proposal.The flat-rate alternativeA separate proposal backed by groups including the Songwriters Guild of America supports a flat rate of $0.003 per stream, adjusted annually for inflation. This is a different proposal from the NMPA and NSAI framework, which includes $0.004 per play as one of four possible calculations.The services’ proposal to hold ratesMost major services (including Spotify, Apple, Google, and Pandora) propose keeping the current headline rate of 15.35 percent through 2032. That would extend the headline rate used for 2027 into the next rate period, rather than adopt the higher publisher-side request.Amazon’s proposed cutAmazon proposes lowering the headline rate to 13.4 percent. That is below both the 15.35 percent rate the other services propose carrying forward and the 20 percent revenue figure in the NMPA/NSAI proposal.Why the gap mattersWhat a percentage point means on a per-stream basisA percentage rate does not translate into one fixed amount per stream. The result depends on service revenue and the number of eligible plays, among other factors. A percentage point is one percent of the revenue base used in the calculation.For a simple illustration, one percentage point on $10 million in relevant service revenue equals $100,000. If that amount were spread across 100 million eligible plays, it would work out to $0.001 per play. That is only an illustration, not a prediction of an individual songwriter’s payout or the outcome of the CRB proceeding.The competing proposals use different formulas, so comparing 20 percent directly with a per-play figure can be misleading without knowing the service’s revenue, its eligible usage, and how the full calculation applies.Why subscriber growth changes the mathA subscriber-based measure links the calculation to the number of paying subscribers, while a revenue percentage can change as prices, subscriptions, advertising, and bundles change. A per-play measure links the calculation more directly to usage.Each approach distributes risk differently. Subscriber counts can shift; revenue can change even if listening does not; and streams may grow without a matching rise in subscription revenue. The rate formula helps determine how those changes factor into the composition royalty pool.DIMA, an organization representing digital music services, has pointed to growth in publishing revenues of about 30 percent since 2022. That growth is part of the context for the disagreement, as Music Business Worldwide reported. It does not, by itself, decide what rate the CRB should adopt.Why the 40-percent-of-labels formula matters to independent songwritersThe proposed TCC measure is based on what a service pays for sound-recording rights. A formula tied to those payments could change as services’ recording-rights costs change.But it does not mean that independent artists automatically receive 40 percent of what a service pays labels. The proposal concerns mechanical royalties for compositions, and a songwriter’s share depends on their rights and royalty arrangements. The TCC figure is one proposed way to calculate the service’s payment, not a direct artist payout formula.Practical guidanceRegister your compositions with The MLC so matching works when rates changeThe Mechanical Licensing Collective (The MLC) handles U.S. digital audio mechanical royalties for eligible uses. Its guidance explains how to register works in The MLC Portal. Accurate titles, writer information, ownership shares, and publisher details help connect a composition to the right rights holders.The MLC has also published a video walkthrough of work registration.Keep your publishing admin or self-admin status currentKnow who administers each composition and make sure your contact information, splits, and ownership records are up to date. If you self-administer, keep a clear record of your works and shares. If a publisher or administrator handles registration, confirm that the catalog information they hold is accurate.Don’t wait for the outcome to get organizedThe CRB’s final decision will apply to the 2028–2032 period, but accurate catalog data and clear rights records are useful now. Rate changes do not automatically correct missing work registrations, inaccurate splits, or outdated administration details.PublishingThe CRB proceeding described here concerns mechanical royalties for musical compositions. It is separate from royalties for sound recordings.Artists who own or control their master recordings may also collect eligible SoundExchange royalties when their music is played on qualifying non-interactive digital services.SoundExchange explains its digital performance royalty system. Songwriters should not confuse those sound-recording royalties with composition royalties collected through publishing channels.Radio-friendly talking points
  • Five to seven minutes. What Phonorecords V covers: Explain the difference between a musical composition and a sound recording, and why the CRB is setting rates for 2028–2032.
  • Five to eight minutes, Four formulas versus a flat rate: Compare the NMPA/NSAI proposal’s “greatest of” structure with the separate $0.003-per-stream proposal.
  • Five to seven minutes. Why streaming services disagree: Lay out the proposal to keep 15.35 percent, Amazon’s proposed 13.4 percent, and the songwriter/publisher coalition’s request, emphasizing that none is the final ruling.
  • Five to ten minutes. What songwriters can check today: Discuss work registration, split information, publishing administration, and the difference between MLC composition royalties and SoundExchange recording royalties.
    • The rate fight will continue through the CRB process. Until the Board issues its determination, the competing figures remain proposals, not the rates that will ultimately govern streaming royalties from 2028 through 2032.