What Phonorecords V Is and Why It Starts Now
The Copyright Royalty Board runs a proceeding called Phonorecords every five years to set the mechanical royalty rates that on-demand streaming services must pay to songwriters and music publishers. Phonorecords IV, which covered 2018 through 2022 and was extended through 2027, established a headline rate that rises to 15.35% of a service's U.S. revenue by 2027. That rate settlement was finalized through the federal register and provided a meaningful increase over prior periods. Phonorecords V - Phono V - sets the next five years: January 1, 2028 through December 31, 2032.
The filing window for Phono V proposals has opened, and all major parties have submitted their positions. Streaming companies, publisher groups, and songwriter organizations each have the opportunity to argue for the rates they believe the next five years should carry. The CRB's three-judge panel will review the proposals, hear testimony, and issue an initial determination before December 2027. Whatever rate is set takes effect January 1, 2028 - directly affecting the royalty statement of every songwriter and independent artist whose music is on streaming platforms.
What Amazon, Spotify, Apple and Google Are Each Proposing
CRB Phono V streaming royalties are being contested differently by each major service. Amazon has filed a proposal to reduce the headline rate from the current trajectory of 15.35% down to 13.4% - a reduction that would directly lower what songwriters receive per stream. Spotify, Apple Music, Google, and Pandora have taken a different position: they want the 2027 rates, including the 15.35% headline rate, simply frozen for the entire 2028-2032 period rather than adjusted upward.
The distinction matters. Amazon's proposal is a cut. The freeze proposed by Spotify, Apple, and others means that inflation, growing streaming revenue, and the increasing value of music in the streaming economy would not be reflected in songwriter compensation between 2028 and 2032. Publisher and songwriter groups have filed competing proposals seeking higher rates - with the National Music Publishers' Association and the Nashville Songwriters Association International asking for rate formulas designed to guarantee a larger share of streaming growth reaches songwriters. The CRB will weigh all of these positions before issuing its determination.
Why This Proceeding Directly Affects Independent Artists
Most attention on streaming royalties focuses on performance royalties - the per-play payments that flow through PROs like ASCAP and BMI to artists when their music is streamed. But mechanical royalties, the type set by Phono V, are separate: they are paid by streaming services to the owners of the underlying song composition, meaning the songwriter and publisher. For independent artists who write their own music and retain their publishing rights, mechanical royalties represent a second income stream on every stream of every song they own. The rate set by Phono V determines how much of that stream flows their way for five years.
A cut from 15.35% to Amazon's proposed 13.4% may sound like a small percentage difference, but at the scale of hundreds of thousands of streams, it compounds quickly. Independent artists who have registered their compositions with a publisher or self-published through a distributor that collects mechanicals will see the impact in their quarterly royalty statements starting in 2028. Atlanta independent artists featured at Di-VerZe E.N.T have spoken directly about the importance of tracking every royalty stream - mechanical, performance, and sync - as part of building a sustainable music career.
What Independent Artists Should Do Before 2028 Rates Take Effect
The most important step for any independent artist ahead of Phono V's implementation is ensuring every release has an ISRC code registered, a publishing split properly filed, and a mechanical license collection mechanism in place. Distribution platforms and music publishers handle mechanical collection on behalf of artists in most cases, but only if the composition data is properly submitted. Artists who skip this step leave mechanical royalties uncollected regardless of what rate the CRB sets. The best time to get your publishing registered is now - not after the 2028 rates are finalized. Submit your music free to Di-VerZe HitZ Radio and include your ISRC - every spin is a documented performance event that supports your royalty reporting.
Keep up with how this proceeding develops and what it means for Atlanta's independent music community through the latest news at Di-VerZe E.N.T. Di-VerZe HitZ Radio streams 24/7 on web, iOS, and Android - free, no subscription, built for Atlanta hip-hop listeners who want to support independent artists directly.