Major streaming platforms and songwriter representatives have proposed competing US royalty rates for 2028–2032, raising questions about fair compensation, subscription bundling and revenue sharing.
US music streaming’s next royalty agreement is becoming a contest over who benefits from the industry’s expansion. Five streaming companies have submitted proposals to the US Copyright Royalty Board (CRB), which determines statutory mechanical royalty rates for songwriters and publishers. The current agreement expires at the end of 2027 and representatives of songwriters outlined different proposals for the 2028–2032 licensing period.
| Party | Proposed revenue-based rate |
| Spotify | 15.35% |
| Apple Music | 15.35% |
| Google/YouTube | 15.35% |
| Pandora | 15.35% |
| Amazon | 13.4% |
| Songwriters and publishers | 20% |
Four streaming companies want to retain the current system, while Amazon seeks reductions and songwriter representatives demand substantially higher payments. Public redacted versions of the proposals which were made available on October 7..
Spotify, Apple, Google and Pandora favour extending the framework negotiated in 2022. Their proposals retain a headline royalty rate of 15.35% of service revenue, the level scheduled for 2027. Amazon on the other hand is seeking a reduction to 13.4% for non-bundled services and lower minimums. Non-bundled services offer standalone music subscriptions without extras like audiobooks. Lower minimums refer to Amazon’s proposal to reduce guaranteed royalty payments to songwriters and publishers, potentially decreasing their earnings from streaming. These are proposed changes for 2028–2032 not approved rates.
These percentages form part of a more complicated formula covering both performance and mechanical royalties. The National Music Publishers’ Association and Nashville Songwriters Association International have taken the opposite position. Their proposal would require platforms to pay whichever is highest: 20% of revenue, 40% of recorded-music licensing costs, $2.40 per subscriber each month, or $0.004 per stream. The associations argue that songwriters need stronger protection against how digital services calculate their obligations.
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On the other hand, subscriptions combining music with audiobooks or other products have emerged as a flashpoint. Spotify’s 2024 decision to classify Premium subscriptions as bundles reduced its mechanical royalty obligations and triggered legal challenges. Platforms maintain that bundle pricing reflects legitimate products while publishers argue that it can divert money away from musical compositions.
There is a difference in the bargaining power of streaming giants and songwriters. Record labels negotiate deals directly with platforms, while mechanical royalties for compositions are determined through a federal process. That makes the Copyright Royalty Board’s ruling consequential for writers who cannot bargain individually with technology companies.
How much songwriters should earn, how streaming revenue should be calculated, and whether subscription bundling unfairly reduces royalties, are the questions at hand.
According to Music Business Worldwide, hearings are scheduled for spring 2027, with an initial decision due in December unless a settlement is reached. The resulsts will help determine how streaming’s revenues are shared with the people creating its songs.
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