What’s the Difference Between a PRO and SoundExchange?

What Each One Covers

Organization

Pays Royalties To

Type of Royalties

Examples of Platforms Covered

PROs (ASCAP, BMI, SESAC)

Songwriters & Publishers

Performance royalties(composition)

Radio, TV, live shows, streaming services (Spotify, YouTube)

SoundExchange

Artists & Master Owners

Digital performance royalties(sound recording)

SiriusXM, Pandora, internet radio



 PRO = Composition Royalties

  • Based on the songwriting itself
  • Collected for:
    • Terrestrial radio (FM/AM)
    • TV broadcasts
    • Live performances
    • Interactive and non-interactive streams

 Must register each song with ASCAP, BMI, or SESAC


 SoundExchange = Sound Recording Royalties

  • Based on the actual audio file/recording
  • Collected for:
    • Non-interactive digital platforms (e.g., Pandora Free, SiriusXM)
  • Split among:
    • 45% to the featured artist
    • 50% to the master owner (label or indie)
    • 5% to session musicians (via AFM/SAG-AFTRA fund)

 Must register each recording with SoundExchange


 Key Differences

Feature

PRO (ASCAP/BMI)

SoundExchange

Who Gets Paid

Songwriters & Publishers

Artists & Rights Owners

Tracks…

The composition

The recording

Covers Streaming?

 Yes (interactive & non)

 Only non-interactive

Covers Radio/TV?

 Yes

 No

Needs Song Registration?

 Yes (composition)

 Yes (recording)



 Pro Tips

  • If you write and perform: you should register with both a PRO and SoundExchange
  • If you only write songs (not perform): you only need a PRO
  • If you perform but don’t write: SoundExchange is essential to collect your cut


Bottom Line:
PROs collect for your songwriting.
SoundExchange collects for your recordings.
To earn everything you're owed as a songwriter and/or performer, you likely need both.

Back to blog