The Next Battle Over Songwriter Streaming Royalties Has Begun. Don’t Expect a Quick Fight

The music industry has entered a new phase of controversy regarding songwriter streaming royalties, with the first major battle set to commence on Monday, October 5. This issue, known as a "mechanical" royalty, has been a subject of contention for decades, particularly in the United States. Unlike other countries, the U.S. regulates this royalty type through a distinct system, a fact that has frustrated various stakeholders within the industry, including music publishers, songwriters, and streaming services.

Every five years, the Copyright Royalty Board (CRB) reviews the mechanical royalty rates, which are set to be determined for the 2028-2032 period. This review process is crucial, as the rates directly impact the income earned by music publishers and songwriters from digital platforms. The stakes are high, as the CRB's decision will shape the royalties for both sales and streaming from 2028 to 2032.

Phono V, the fifth five-year cycle of the CRB proceedings, will focus on the streaming aspect of mechanical royalties. The streaming side of Phono V is expected to be the most significant aspect for the CRB, given the prevalence of streaming as a primary method of music consumption. The sales side of Phono V has been ongoing for months, but the CRB's decision on streaming royalties begins on Monday.

The outcome of this battle will have significant implications for the music industry, particularly for songwriters and publishers who rely on these royalties for their livelihood. With the CRB's decision looming, industry stakeholders are closely monitoring the proceedings to gauge the potential impact on their revenue streams.