(Hypebot) — The US Copyright Royalty Board has announced that the minimum mechanical royalty rate paid on CD, vinyl, cassette, and download sales will rise on January 1, 2024, to $.1240 for songs 5 minutes or less with a per-minute rate of $.0239 for longer songs.
This 3.3% cost of living adjustment (COLA) comes on top of the first increase in mechanical rates since 2006 from $.091 to $.12 that went into effect on January 1, 2023.
No increase for streams
These royalties on physical goods are paid by labels, but those paid by Spotify, Apple Music, Amazon Music, and others on streams saw no rate increase on plays of those same songs.
Ironically, as The Trichordist points out, the Mechanical Licensing Collective (MLC) which is tasked by the US government with collecting and distributing streaming music royalties, is guaranteed an annual “administrative assessment” adjustment.
Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.
