What Is SoundExchange and How Does It Pay Songwriters?

What Does SoundExchange Do?

  • Collects royalties from non-interactive digital radio (not on-demand)
  • Pays royalties to:
    • Featured artists (e.g. the vocalist or main rapper)
    • Master rights owners (label or self-releasing artist)
    • Non-featured artists (via AFM/SAG-AFTRA Fund)

 It does not pay songwriter or publisher royalties (that’s PROs and The MLC)


 Who Gets Paid Through SoundExchange?

Role

Gets Paid?

% of Royalty

Featured Artist

 Yes

45%

Master Rights Owner

 Yes

50%

Non-Featured Musicians

 (via AFM/SAG-AFTRA Fund)

5%

Songwriter

 No

0%

Publisher

 No

0%


If you're a songwriter and the performing artist, or you own your masters, you should register with SoundExchange to get paid.


 Examples of Platforms That Trigger SoundExchange Royalties

Platform Type

Pays via SoundExchange?

Pandora (free radio)

 Yes

SiriusXM

 Yes

iHeartRadio (radio-style)

 Yes

Spotify / Apple Music (on-demand)

 No

YouTube

 No

FM/AM radio

 No



 How to Get Paid

  1. Go to https://www.soundexchange.com
  2. Create a SoundExchange Artist Account
  3. Register your recordings with:
    • ISRC codes
    • Performer names
    • Master owner information
  4. Update your catalog as you release new music


 Pro Tips

  • If you’re an independent artist, you likely qualify for both performer and rights owner royalties
  • Use exact metadata that matches your distributor
  • Don’t assume your distributor collects SoundExchange royalties—most don’t
  • Check if any of your songs were played on Pandora or SiriusXM—money may already be waiting


Bottom Line:
SoundExchange pays digital performance royalties for the recording, not the composition. If you perform or own your masters, you must register to get your share. If you’re only a songwriter, your money comes from PROs and The MLC, not here.

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