The Copyright Royalty Judges have announced that the new COLA-adjusted minimum statutory rate for 2026 is 13.1¢ for physical and downloads, up from 12.7¢, effective 1/1/26. This is the last year of the Phonorecords IV rate period, so that’s an increase from the 9.1¢ frozen mechanical rate that had been in effect for 15 years.

The adjusted rate stands in stark contrast to the streaming mechanical which not only has been frozen for the entire 5 year rate period, but has actually declined substantially due to Spotify’s bundling silliness. That smooth move has set up what will no doubt be a donnybrook in Phonorecords V, i.e., the next rate proceeding which is due to start any minute now (actually more like January, which is close enough).

It must be said that the reason there’s a rate increase for physical/downloads is due to the efforts of independents who filed two rounds of comments in Phonorecords IV and also the willingness of the labels to be flexible and reasonable. I suspect that has a lot to do with the fact that at the end of the day, we are all in the same business and it’s to everyone’s advantage that songwriters thrive. Obviously, the same cannot be said of the streaming platforms like Spotify that are busy seeding AI tracks with both hands. I really don’t know what business those people think they are in, but it’s not the music business.