GEMA to lower its commission on digital music payouts to 7% by 2027

The German collection society plans to lower its commission on all on-demand music distribution in stages. GEMA has announced a significant change to the way it handles online royalties. By 2027, the German collection society will reduce its commission for music-on-demand services from 10% to 7%. The move is expected to add more than €6 million each year to the payouts received by its members. The shift won’t happen overnight though. From January 2026, the commission rate will fall to 9%, before reaching the 7% target the following year. This applies to royalties collected from platforms such as Spotify, Apple…