What Is SoundExchange?

Key Facts:

  • SoundExchange handles royalties from non-interactive digital streams (you don’t choose each song—like on Pandora or satellite radio).
  • It pays:
    • Featured Artists (e.g., the performer or band)
    • Master Rights Owners (e.g., record label or independent artist)
    • Background Musicians and Vocalists (via AFM & SAG-AFTRA)


 What It Does Not Cover:

  • Does NOT collect songwriter royalties (that’s done by ASCAP, BMI, SESAC, and MLC).
  • Does NOT cover on-demand streaming (like Spotify or Apple Music).


 How the Money Works:

Role

Who Gets Paid By SoundExchange

Featured Artist

45% of royalties

Master Rights Owner

50% of royalties

Background Performers

5% (via unions: AFM/SAG-AFTRA)



 How to Get Paid:

  • You must register with SoundExchange as a:
    • Featured artist
    • Rights owner
  • Even if you distribute your music elsewhere (like DistroKid), you won’t get these royalties unless you’re registered with SoundExchange.


 Who Should Sign Up?

  • Independent artists who release and perform their own music.
  • Labels who own masters.
  • Background musicians (if they qualify).

 Songwriters must still register with a PRO (ASCAP/BMI) and MLC separately—SoundExchange is for the recording, not the composition.

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