The Copyright Royalty Judges have introduced that the brand new COLA-adjusted minimal statutory mechanical royalty price for 2026 is 13.1¢ for bodily and downloads, up from 12.7¢, efficient 1/1/26. That is the final 12 months of the Phonorecords IV price interval, in order that’s a rise from the 9.1¢ frozen mechanical price that had been in impact for 15 years.
Chances are you’ll need to be sure that your writer or administrator has adjusted their royalty accounting methods to accommodate a change in charges. We heard that the 9.1¢ price had been frozen for thus lengthy that some publishers had assumed it will be the identical price for years to return and by no means constructed within the capacity to alter charges yearly. That might imply that they didn’t make the modifications for any 12 months within the Phonorecords IV price interval (2023-2027), so you must undoubtedly be sure that the right charges are being paid.
This might additionally apply to report corporations who use the statutory price for calculating managed composition charges for data delivered in the course of the 2023-2027 interval. For instance, 10 x 3/4 at 9.1¢ can be a 68.25¢ cap in comparison with a 90¢ cap in 2023 ranging as much as a 98.25¢ cap for data delivered in 2026. Large distinction.
The adjusted price for vinyl/downloads stands in stark distinction to the streaming mechanical which not solely has been frozen for all the 5 12 months price interval, however has truly declined considerably attributable to Spotify’s bundling silliness. That clean transfer has arrange what is going to little question be a donnybrook in Phonorecords V, i.e., the subsequent price continuing which is because of begin any minute now (truly extra like January, which is shut sufficient).
It have to be mentioned that the explanation there’s a price enhance for bodily/downloads is as a result of efforts of independents who filed two rounds of feedback in Phonorecords IV and in addition the willingness of the labels to be versatile and cheap. I believe that has so much to do with the truth that on the finish of the day, we’re all in the identical enterprise and it’s to everybody’s benefit that songwriters thrive. Clearly, the identical can’t be mentioned of the streaming platforms like Spotify which can be busy seeding AI tracks with each fingers. I actually don’t know what enterprise these individuals suppose they’re in, but it surely’s not the music enterprise.
