How to Report and Pay Royalties as a US Webcaster (August 2026)

Streaming copyrighted music online comes with a legal obligation: you must report and pay royalties for every song you broadcast. If you run an internet radio station, simulcast an AM or FM signal, or operate a college radio stream in the United States, this guide walks you through the entire process from start to finish.

The good news is that the system is more straightforward than it looks once you understand the moving parts. Two separate copyrights apply to every recorded song, and different organizations collect royalties for each. Understanding which payments go where is the key to staying compliant.

Our team has broken this down into a step-by-step workflow that covers SoundExchange registration, the 2026 royalty rate structure, monthly reporting, playlist submissions, payment methods, and the ASCAP/BMI/SESAC licenses you also need. By the end, you will know exactly how to report and pay royalties as a US webcaster without second-guessing yourself.

What Are Webcaster Royalties and Why Do They Matter?

Webcaster royalties are mandatory payments that any online broadcaster must make to copyright holders when streaming recorded music. The US Copyright Act requires these payments under what is called a statutory license, which lets you play any copyrighted sound recording without negotiating individual deals with each record label.

Every recorded song involves two distinct copyrights. The first is the sound recording copyright, which covers the actual audio recording and is held by the record label or performing artist. The second is the musical composition copyright, which covers the underlying song itself and is held by the songwriter or music publisher.

SoundExchange collects and distributes royalties for the sound recording copyright when you stream music online. ASCAP, BMI, SESAC, and GMR handle the musical composition side of things. You need licenses from both sets of organizations to legally webcast copyrighted music.

Skipping these payments is not a minor oversight. The Copyright Royalty Board, or CRB, sets the rates and terms, and non-payment can result in accumulated late fees, legal action, and loss of your statutory license protection. That means you could face per-song infringement liability with no statutory cap if you lose the license.

The statutory license under Section 114 of the Copyright Act is what makes legal webcasting practical. Without it, you would need to negotiate separate deals with every record label whose music you play. The license standardizes the process but comes with strict reporting and payment obligations.

Step 1: Determine Your Eligibility and Webcaster Type

Before registering or paying anything, figure out which category of webcaster you fall into. Your classification determines your rate structure, reporting requirements, and minimum fees. The Copyright Royalty Board recognizes several distinct webcaster types.

Commercial webcasters operate as for-profit streaming services, including internet-only radio stations and AM/FM stations that simulcast their signal online. These webcasters pay per-performance rates established by the CRB and owe annual minimum fees that are recoupable against their monthly royalty obligations.

Noncommercial educational webcasters include college radio stations, community broadcasters, and other noncommercial entities. These stations qualify for reduced rates and have different reporting thresholds depending on their listener reach and funding structure.

Small webcasters can elect into special settlement agreements that offer simplified rate options. These provisions typically cap fees or offer a flat annual payment in exchange for certain operational restrictions. To qualify, you must file an election notice with SoundExchange by the deadline specified in the applicable settlement.

If you simulcast an over-the-air AM or FM broadcast online, you still need the statutory license for the internet stream. The terrestrial broadcast license covers the airwaves, but the internet feed is treated as a separate set of transmissions requiring its own royalty payments.

Step 2: Register With SoundExchange

SoundExchange is the organization designated by the Copyright Royalty Board to administer the statutory license for digital audio transmissions. You cannot pay or report webcaster royalties without first establishing an account with them.

Registration starts on the SoundExchange website under the Service Provider section. Select the webcaster category that matches your operation, such as Commercial Webcaster or Noncommercial Webcaster. You will need to provide your station name, legal entity information, contact details, and streaming service description.

SoundExchange uses an online portal called Licensee Direct (SXDirect) for account management. Through this portal, you submit your monthly Statements of Account, upload Reports of Use, view your payment history, and download official forms. Your account becomes the central hub for all compliance activity.

During registration, you will designate an authorized representative who receives all official correspondence. This person is responsible for ensuring timely filings and payments. Choose someone who checks email regularly and understands the compliance calendar.

New webcasters should register before they begin streaming copyrighted music. If you have already started broadcasting, register immediately and reach out to SoundExchange to discuss bringing your account current. The organization can be reached at 202-559-0555 for registration assistance.

Step 3: Understand the 2026 Royalty Rate Structure

The Copyright Royalty Board establishes per-performance royalty rates through periodic rate-setting proceedings. These rates are adjusted annually for cost of living and vary based on your webcaster classification and transmission type.

For commercial webcasters, the current rate is a per-performance amount that applies to every song streamed to every listener. A single performance is one song played for one listener. If ten people tune in to hear one song, that counts as ten performances.

The 2026 rates apply to all eligible transmissions made during the calendar year. SoundExchange publishes the official rate tables on its website, and the Federal Register publishes annual cost-of-living adjustments. Always verify the current rates directly with SoundExchange rather than relying on third-party sources that may be outdated.

Every commercial webcaster owes a minimum annual fee. This fee is recoupable, meaning it is applied as a credit against your per-performance royalty liability throughout the year. If your actual royalty liability exceeds the minimum fee, you pay the difference. If it falls short, you forfeit the remaining minimum fee balance.

Noncommercial webcasters pay different rates. Those with limited online listening may qualify for a lower per-performance rate, while larger noncommercial operations with significant online audiences may face rates closer to commercial levels.

Small webcasters who elect into a settlement agreement may pay a flat percentage of revenue or expenses instead of per-performance rates. This option simplifies accounting but comes with restrictions on revenue, listener hours, or other operational parameters.

Keep detailed records of your performance counts and revenue figures from day one. You will need accurate data for every monthly Statement of Account and annual reconciliation.

Step 4: File Your Statement of Account Each Month

A Statement of Account, or SOA, is the official document you submit to SoundExchange that summarizes your streaming activity and calculates your royalty payment for the reporting period. Every webcaster must file an SOA, and the format depends on your webcaster type.

Commercial webcasters file two types of SOAs. The Minimum Fee Statement of Account is due at the beginning of each year and covers your annual minimum fee payment. The Monthly Statement of Account is due each month and reports your actual performance counts, calculated royalty liability, and any amount owed after applying your recoupable minimum fee credit.

The Monthly SOA requires your total number of performances for the month, broken down by transmission category. You also report aggregate tuning hours, which represent the total listening time across all listeners during the period.

Each SOA must be signed by an authorized officer of your organization. Unsigned or incomplete statements may be rejected, which can trigger late fee accrual. Submit your SOAs through the Licensee Direct portal or by following the filing instructions provided by SoundExchange for your specific webcaster category.

SoundExchange provides official SOA templates on its website. Download the current version each year because the format may change when new rate terms take effect. Using an outdated form is a common reason for rejected filings.

Step 5: Submit Reports of Use (Playlists)

A Report of Use is the detailed playlist data that tells SoundExchange exactly which songs you played, how many times you played them, and how many listeners heard each transmission. This data is what allows SoundExchange to distribute your royalty payments to the correct recording artists and record labels.

The Report of Use must follow the technical format specified in 37 CFR 370.4. Each row represents a single sound recording played during the reporting period, and the required fields include the featured artist, sound recording title, ISRC code if available, record label, catalog number, and the total number of performances for that track.

The ISRC, or International Standard Recording Code, is the single most important identifier in your playlist data. When you include the correct ISRC for each track, SoundExchange can match your plays to the specific recording with high accuracy. Missing or incorrect ISRCs are the leading cause of delayed or misallocated royalty distributions.

Most webcasters must submit Reports of Use monthly. However, some small webcaster categories may qualify for periodic or sample-based reporting rather than comprehensive monthly playlists. Check the specific terms that apply to your webcaster type.

SoundExchange accepts Reports of Use through the Licensee Direct portal. The system validates your file format and flags errors before submission. Always review validation errors and resubmit corrected files promptly to avoid compliance gaps.

If your streaming software generates playlist logs automatically, configure those exports to match the 37 CFR 370.4 field requirements. Many station automation systems include templates or plugins for SoundExchange reporting. Investing time in this setup early saves significant manual effort each month.

Step 6: Make Your Payment on Time

SoundExchange accepts royalty payments by several methods. Electronic payments through the Licensee Direct portal are the fastest and most reliable option. The portal supports ACH transfers for US bank accounts, which typically process within one to two business days.

Wire transfers are another electronic option for larger payments or international webcasters. SoundExchange provides wire instructions on its website, and you should include your account number and reporting period in the wire reference field to ensure proper crediting.

Checks are accepted but come with the longest processing time. If you pay by check, mail it to the address specified on your invoice along with a copy of your Statement of Account. Allow extra mailing and processing time so the payment arrives before the deadline.

Every payment must be accompanied by a signed and completed Statement of Account. Submitting payment without the corresponding SOA does not satisfy your compliance obligation, and submitting the SOA without payment leaves your account in arrears. Both documents go together.

Step 7: Handle ASCAP, BMI and SESAC Licensing

SoundExchange covers the sound recording copyright, but you also need licenses for the musical composition copyright. Four organizations administer public performance rights for songwriters and publishers in the US: ASCAP, BMI, SESAC, and GMR.

Each organization represents a different catalog of songwriters, and there is significant overlap in popular music across all four. Most webcasters obtain blanket licenses from all four to ensure full coverage of the songs they play. A blanket license gives you unlimited performance rights for the entire catalog that organization represents.

ASCAP and BMI operate under consent decrees with the US Department of Justice, which means their rates are publicly available and regulated. You can license directly through their websites. BMI charges an annual webcasting fee based on your revenue, while ASCAP offers a webcasting license priced similarly.

SESAC and GMR are invitation-only organizations with privately negotiated rates. You must contact them directly for licensing terms. Do not assume that an ASCAP and BMI blanket license covers all songs, because SESAC and GMR represent exclusive catalogs containing thousands of popular compositions.

Many first-year streamers express confusion about why they need separate licenses from so many organizations. The simplest way to think about it: SoundExchange pays the recording artist and label for the recording, while ASCAP, BMI, SESAC, and GMR pay the songwriter and publisher for the composition. Both sets of rights must be cleared for every song.

Fees for all four composition licenses are separate from and in addition to your SoundExchange royalty payments. Budget for both when calculating your annual streaming costs.

Due Dates, Late Fees and Common Mistakes to Avoid

SoundExchange payments are due on the 45th day following the end of each reporting month. For example, your January royalty payment and Statement of Account must be received by March 15. The Reports of Use for that same period must also be submitted by this date.

Late payments accrue interest charges. SoundExchange applies a late fee based on the outstanding amount and the number of days past due. These charges compound, so a single missed deadline can grow into a significant penalty if left unaddressed.

Repeated or prolonged non-payment can lead to suspension of your statutory license. Without the statutory license, you lose the protection of capped per-song liability and could face separate infringement claims from individual copyright holders.

One of the most common mistakes new webcasters make is assuming they only need one license. We frequently see streamers on forums asking whether a SoundExchange account covers everything. It does not. You need SoundExchange plus ASCAP, BMI, SESAC, and GMR to be fully compliant.

Another frequent error is submitting Reports of Use without ISRC codes. Without ISRCs, SoundExchange cannot accurately distribute your payments to the correct rights holders, which can create downstream problems even though you have technically paid.

Using outdated SOA templates is another pitfall. Rate changes and format updates occur periodically, and filing on a previous year’s form can cause rejections. Always download the current form from SoundExchange before each filing cycle.

Finally, many small webcasters fail to track their aggregate tuning hours accurately. If your listener metrics are off, your performance counts and royalty calculations will be wrong. Verify that your streaming platform reports listener data correctly and that you understand how your automation system calculates performances.

Frequently Asked Questions

Final Checklist for 2026

If you want to report and pay royalties as a US webcaster correctly, follow this condensed checklist to stay compliant all year long.

Register with SoundExchange before you start streaming. Determine your webcaster type and select the correct category during registration. Set up your Licensee Direct account and designate a compliance contact who checks messages regularly.

Obtain blanket licenses from ASCAP, BMI, SESAC, and GMR for the musical composition side. Budget for all five sets of payments when calculating your annual streaming costs.

Download the current Statement of Account and Report of Use templates from SoundExchange. Configure your streaming software to export playlist data in the 37 CFR 370.4 format with ISRC codes included for every track.

File your Minimum Fee SOA at the start of each year. Submit your Monthly SOA and Report of Use by the 45th day after each reporting month closes. Pay via ACH or wire through Licensee Direct, and always include your signed SOA with each payment.

Keep meticulous records of performance counts, aggregate tuning hours, and all correspondence with SoundExchange. When the Copyright Royalty Board publishes annual rate adjustments, verify the new rates and update your calculations accordingly. Stay proactive, and the reporting process becomes routine.