Amazon Music’s Proposed Songwriter Royalty Cut Draws NMPA Criticism

October 16, 2026 | Exposed Vocals Music News

A dispute over the future of US streaming royalties is taking shape after Amazon Music submitted a proposal that would reduce the headline mechanical royalty rate used in the next Phonorecords V period. The National Music Publishers’ Association has sharply criticized the move, arguing that it would leave songwriters worse off.

What is being proposed?

Phonorecords V is the Copyright Royalty Board process determining statutory mechanical royalties for eligible US interactive streaming services for 2028 through 2032. These payments concern the underlying musical compositions and their songwriters and publishers, distinct from royalties paid for sound recordings.

According to reporting by Digital Music News and Music Business Worldwide, Amazon’s proposal includes a headline revenue-rate reduction to 13.4%, compared with the current 15.35% headline figure. Several other services have advocated retaining that 15.35% headline rate. These are opening proposals in a rate-setting process, not newly enacted royalty rates.

Why the industry is divided

NMPA president and CEO David Israelite criticized Amazon’s position, including its proposals on revenue definitions, bundles and late fees. Streaming services and their representatives have argued for changes to aspects of royalty calculations and administration. The regulatory proceeding will weigh the competing evidence and submissions; the outcome is not settled.

What independent songwriters should watch

The headline percentage is only part of the story. Bundled services, minimum payment formulas and the definitions of eligible revenue can all influence amounts eventually payable. Independent writers should distinguish composition royalties from master-recording income, maintain accurate song registrations, and follow the Copyright Royalty Board process rather than assume the submitted proposal is already law.

Why the numbers need context

Mechanical royalty structures are not a simple universal per-stream fee. Revenue definitions, subscription bundles, minimum calculations and service categories can alter how a headline percentage works in practice. That is why a proposal’s total impact cannot be assessed from a single rate alone.

EV perspective: clarity is a form of leverage

Independent songwriters depend on a system they often cannot audit in detail. Composition royalties and master-recording royalties are different streams; a proposed statutory mechanical change does not mean every artist’s recording income has already changed. The Phonorecords V submissions are negotiating positions, not final rates. The right question is who receives a fair share when listening grows—and whether the accounting is transparent enough to verify it.

Sources: Digital Music News, October 15; Music Business Worldwide, October 14; Complete Music Update, October 16.