According to Billboard, Publishers and songwriters will get a slight raise in subscription streaming royalty rates over the next five years due to a settlement reached in August 2022 by the National Music Publishers’ Association, the Nashville Songwriters Association International and the Digital Media Association. And arriving just before New Years’ Eve, on Friday (Dec. 30), the Copyright Royalty Board judges issued their ruling on streaming royalty rates for songwriters for the period of January 2023 to December 2027, upholding the settlement.
The headline royalty rate will go from 15.1% of revenue in 2023 to 15.35% by 2027. That’s not a huge gain, but it’s an improvement. Here’s a bit more detail — “The Copyright Royalty Board judges issued their ruling on streaming royalty rates for songwriters for the period of January 2023 to December 2027, upholding a settlement increasing from 15.1% of revenue in 2023 to 15.2% in 2024 and then up a half a percentage point in each of the remaining three years, peaking at 15.35% in 2027, the final year of the term.
Streaming services were able to get good terms for bundles and free trials that allow them to get more subscribers into the ecosystem. That would help songwriters and publishers by increasing the number of subscribers — the major driver in streaming royalty growth — as they enjoy modest annual increases in royalty rates.
Starting January 1, songwriters will enjoy the highest rates in the world and the highest rates in the history of digital streaming
NMPA president and CEO, David Israelite
We appreciate the Copyright Royalty Board for recognizing the benefits of this landmark agreement and the certainty it provides for streaming services, publishers, and songwriters alike. Thanks to the agreement, we can kick off 2023 focused on fans and continuing to grow streaming for the benefit of all stakeholders.
DiMA president and CEO, Garrett Levin
Source: Billboard, The Ledger (Glenn Peoples, lead analyst, Billboard)