SoundExchange and Digital Performance Royalties

SoundExchange collects digital performance royalties for sound recordings played on satellite radio, internet radio, and other non-interactive digital platforms. If you own your masters and your music plays on SiriusXM, Pandora, or internet radio stations, SoundExchange holds money for you. Without registration, you cannot claim it.

Most artists collect streaming royalties from their distributor and stop there. That covers Spotify and Apple Music. It does not cover the royalties generated when your recordings play on digital radio. SoundExchange handles that separate revenue stream, and it pays from the sound recording side, not the composition side. For artists with any digital radio play, this is real money sitting uncollected. Registration is free and takes about 15 minutes. There is no reason to leave it on the table.

For the full breakdown of every royalty type and who collects what, see Music Royalties Explained: The 6 Types You Earn.

What SoundExchange Collects

SoundExchange collects neighboring rights royalties from the sound recording when it is played on non-interactive digital platforms.

Non-interactive means the listener does not choose the specific track. They choose a station or channel, and the platform decides what plays. This contrasts with Spotify or Apple Music, where users select specific songs.

Platforms SoundExchange Covers

• SiriusXM satellite radio

• Pandora (radio mode, not premium on-demand)

• iHeartRadio (non-on-demand streams)

• Internet radio stations and webcasters

• Cable music channels

• Some background music services

What SoundExchange Does Not Cover

On-demand streaming. Spotify, Apple Music, Amazon Music Unlimited, Tidal, YouTube Music. These platforms pay your distributor directly for sound recording royalties.

Terrestrial radio (AM/FM). The US does not pay performers neighboring rights for terrestrial radio broadcast. This is a policy gap that affects US artists. Terrestrial radio only generates composition royalties, collected by your PRO.

International neighboring rights. SoundExchange handles US collection only. International neighboring rights are collected by foreign organizations like PPL in the UK, GVL in Germany, and SENA in the Netherlands.

How the Split Works

SoundExchange distributes payments according to a statutory formula:

• 50% to the sound recording owner (typically the label, or the artist if independent)

• 45% to the featured artist

• 5% to non-featured performers and session players (through a separate fund)

What This Means for Independent Artists

If you own your masters and perform on your own recordings, you are entitled to both the owner share (50%) and the featured artist share (45%). That is 95% of the total.

To collect both shares, you must register with SoundExchange under two roles:

1. Sound Recording Copyright Owner

2. Featured Artist

Many independent artists only register as one, leaving roughly half their money uncollected.

Who Should Register

Register if any of these apply:

• Your music plays on SiriusXM

• Your music plays on Pandora's radio mode

• Your music plays on internet radio stations

• You have been told your music is in rotation on digital broadcast platforms

• You own your masters and want to ensure you collect all available royalties

Even if you are not sure whether your music plays on these platforms, registration is free. It ensures you collect if it does.

How to Register

Registration is free and takes about 15 minutes.

Step 1: Create an Account

Go to soundexchange.com and create a member account. You will register under two roles:

1. Sound Recording Copyright Owner (if you own your masters)

2. Featured Artist

Step 2: Provide Your Information

For each role, you will need:

• Legal name (or entity name if you have an LLC)

• Contact information

• Tax information (SSN or EIN)

• Payment details

Step 3: Register Your Recordings

Add your sound recordings to your SoundExchange account. For each recording, provide:

• Track title

• ISRC code

• Album title

• Release date

• Featured artist name

The ISRC code is the most important identifier. SoundExchange uses ISRCs to match incoming royalties to registered recordings.

SoundExchange vs. Your PRO vs. Your Distributor

These three organizations collect different royalty types from different uses. None replaces another.

If you are building your business foundation as an independent artist, registering with all four is part of the setup that protects your income.

For publishing and composition royalty context, see Music Publishing: How It Works.

How Much Does SoundExchange Pay?

Payment amounts vary based on how much your music is played on covered platforms.

• Artists with no digital radio play: $0

• Artists with occasional Pandora plays: $10 to $100 per quarter

• Artists in regular SiriusXM rotation: $100 to $1,000+ per quarter

• Artists with heavy digital radio play: thousands per quarter

SiriusXM plays tend to pay more per spin than Pandora plays. The rates are set by the Copyright Royalty Board and adjusted periodically.

The Check You Might Be Missing

SoundExchange holds royalties for unregistered artists. If your music has been playing on SiriusXM or Pandora for years and you never registered, those royalties are sitting in your name. Registration allows you to claim past royalties within certain time limitations.

International Neighboring Rights

SoundExchange only handles US collection. If your music plays on radio or digital platforms internationally, neighboring rights royalties accumulate in foreign countries.

Options for international collection:

1. Register directly with foreign societies. PPL (UK), GVL (Germany), SENA (Netherlands), and others. Time-consuming but no intermediary fees.

2. Use a neighboring rights collection service. Services like CD Baby Pro, Songtrust, or dedicated neighboring rights administrators register you internationally for a commission, typically 10 to 20%.

3. Use your publisher. If you have a publishing deal, check whether your publisher handles neighboring rights internationally.

For most independent artists, a collection service is the practical choice. The administrative complexity of registering with dozens of foreign societies is prohibitive for a solo operation.

Common Misconceptions

"My distributor collects this." Your distributor collects from on-demand streaming. SoundExchange collects from digital radio. Different platforms, different collection paths.

"I registered as the artist, so I am good." You need to register as both Featured Artist AND Sound Recording Copyright Owner if you own your masters. One registration captures 45%. Both capture 95%.

"My music is not on radio, so this does not apply." If your music is distributed widely, it may be playing on internet radio stations or Pandora without your knowledge. Registration ensures you collect if it is.

"This is the same as my PRO." SoundExchange collects sound recording royalties. Your PRO collects composition royalties. Different copyrights, different money.

FAQ

How often does SoundExchange pay?

Quarterly, approximately 45 days after each quarter ends. There is a reporting lag of 6 to 9 months from when plays occur to when payments arrive.

Is there a minimum balance to receive payment?

Yes. SoundExchange requires a minimum balance of $10 before issuing payment. Smaller amounts carry over until the threshold is met.

What if my music was played before I registered?

SoundExchange holds royalties for unregistered artists. Upon registration, you can claim past royalties going back several years. Specific policies vary.

Does SoundExchange handle sync licensing?

No. SoundExchange collects digital performance royalties only. Sync licensing is handled separately through direct negotiations or sync agents.

Read Next

• Music Royalties Explained: The 6 Types You Earn

• Music Publishing: How It Works

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