What Is SoundExchange and What Royalties Does It Collect?

What Are Digital Performance Royalties?

They are paid when a sound recording (not the composition) is streamed via:

  • Non-interactive digital radio (you can’t pick the song)
  • Satellite radio (like SiriusXM)
  • Webcast radio (like Pandora Free or iHeartRadio)


 Who Gets Paid Through SoundExchange?

Role

Share of Royalty

Gets Paid By SoundExchange?

Featured Artist

45%

 Yes

Rights Owner (Label)

50%

 Yes

Non-Featured Performers (e.g., session musicians)

5% via AFM/SAG-AFTRA Fund

 Yes (indirectly)

Songwriters & Publishers

0%

 No (they get paid by PROs & MLC)



 What Makes SoundExchange Unique

  • Handles only non-interactive streaming royalties
  • Pays artists directly, even if they don’t own the master
  • Collects internationally via deals with foreign collection societies


 How to Register with SoundExchange

  1. Go to soundexchange.com
  2. Choose your role:
    • Artist (featured performer)
    • Rights Owner (label or independent artist who owns masters)
  3. Submit your recordings and metadata
  4. Link bank info and tax forms to receive payments

 Registration is free


 Examples of Eligible Platforms

Platform

Pays via SoundExchange?

SiriusXM

 Yes

Pandora Free

 Yes

YouTube Music

 No

Spotify

 No

Apple Music

 No


(Spotify/Apple = interactive = pay via your distributor)


 Pro Tips

  • If you’re an artist and own your masters, register as both an artist and a rights owner
  • Update your SoundExchange account when you release new music
  • Use ISRCs to ensure correct royalty tracking


Bottom Line:
SoundExchange collects digital performance royalties for recording artists and labels—not songwriters. If you’re an artist and your music is streamed on non-interactive platforms, you may be owed money right now—make sure you’re registered.

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