TL;DR
SoundExchange collects digital performance royalties from internet radio, satellite radio (SiriusXM), cable TV music channels, and webcasting services. It pays both the sound recording copyright owner (typically the label or artist who owns the master) and the featured artist — even if you don't own your master. If you're not registered, you collect $0 from these sources regardless of how many plays you receive.
In 2024, SoundExchange distributed $1.05 billion in digital performance royalties to artists and rights holders, according to SoundExchange's 2024 fiscal report. Of that, a meaningful portion — estimated at hundreds of millions of dollars — goes uncollected each year because the performers on those recordings are not registered.
The source of the confusion is simple: artists assume their distributor or PRO handles everything. Neither does. SoundExchange is a separate organization collecting a separate royalty from a separate set of platforms. If you haven't registered directly with SoundExchange, no one is collecting on your behalf.
What SoundExchange Collects
SoundExchange was created under the Digital Millennium Copyright Act (DMCA) to collect royalties specifically from non-interactive digital audio transmissions — services where the listener doesn't choose what plays next.
The platforms that pay into SoundExchange:
- Pandora (internet radio)
- SiriusXM (satellite radio)
- iHeartRadio (broadcast and streaming)
- Cable TV music channels (Music Choice, Stingray)
- Webcasting services (internet-only radio stations)
- In-store music services
What SoundExchange does NOT cover:
- Spotify, Apple Music, Amazon Music, Tidal (on-demand streaming — these pay through The MLC for mechanicals and through ASCAP/BMI for performance)
- YouTube (separate licensing structure)
- TikTok (separate)
- Live performance (ASCAP/BMI)
The royalty SoundExchange collects is a sound recording performance royalty — distinct from the songwriter's performance royalty (ASCAP/BMI) and the mechanical royalty (The MLC). Three separate royalties, three separate organizations.
The Two-Part Payment Structure
SoundExchange splits each royalty payment into two parts:
50% to the sound recording copyright owner (SRCO). This is typically whoever owns the master recording — your label, or you, if you self-release. If you own your masters, you are the SRCO and you receive this portion.
45% to the featured artist. This goes directly to the performer, regardless of who owns the master. This is the unique protection SoundExchange provides: even if you signed away your masters entirely, you still receive 45% of the digital performance royalty as the featured artist. A label cannot take this portion from you.
5% to non-featured musicians and vocalists (session musicians, backing vocalists). This portion goes through the American Federation of Musicians and the American Federation of Television and Radio Artists.
This structure matters for two reasons. First, it means independent artists who own their masters can collect 95% of every SoundExchange royalty (50% + 45%). Second, it means artists who don't own their masters can still collect 45% — but only if they're registered with SoundExchange directly.
How to Register with SoundExchange
Registration is free and takes approximately 20 minutes for a basic setup.
Step 1: Go to soundexchange.com and create an account. You can register as a Featured Artist, a Sound Recording Copyright Owner, or both. If you own your masters, register as both.
Step 2: Submit your catalog. Provide a list of your recordings — song titles, ISRCs, and release dates. SoundExchange uses ISRCs to match your recordings to plays reported by services like Pandora and SiriusXM. If your ISRCs are not in their system, or if the ISRCs in their system don't match your distributor's ISRCs, royalties will be unmatched.
Step 3: Search for unclaimed royalties. SoundExchange maintains a database of unclaimed royalties. Use the search tool at soundexchange.com to check whether there are royalties already collected but not yet paid out for your recordings.
Step 4: Submit a claim if applicable. If you find unclaimed royalties in their database, submit a formal claim with supporting documentation: proof of performance (distributor statements, PRO credits), proof of identity, and ISRC records.
How Much Could You Be Missing?
The scale depends heavily on your radio and streaming presence. For context:
- Pandora pays SoundExchange at a statutory rate set by the Copyright Royalty Board: $0.0026 per stream for non-subscription listeners as of 2024, per CRB rate decisions
- SiriusXM rates vary by channel type but are in a similar range
- An artist with 500,000 monthly Pandora plays earns approximately $1,300/month in SoundExchange royalties — $15,600/year — assuming they're registered
For artists with significant radio or playlist presence on Pandora or SiriusXM, unregistered SoundExchange royalties can represent a larger missed payment than anything else on this list. Terrestrial radio (AM/FM) does not pay SoundExchange in the US — that's a separate and ongoing policy fight — but digital radio and satellite radio do.
The Non-Featured Artist Pool
One nuance worth knowing: SoundExchange also holds a Non-Featured Artist pool for session musicians and background vocalists. If you've played on recordings as a session musician, you may have unclaimed SoundExchange royalties in the non-featured pool even if you're not the credited artist. Registration for this category goes through the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund.
Common Registration Mistakes
Registering only as a featured artist, not as a copyright owner. If you own your masters, you're leaving 50% of every royalty on the table. Register as both.
Not submitting your ISRCs. SoundExchange matches plays to rights holders using ISRCs. A registration without ISRCs is essentially invisible to their matching system. Submit the ISRC for every recording in your catalog.
Using stage name only. Register both your legal name and your stage name. SoundExchange may have royalties logged under either — and registration under only one means the other goes unclaimed.
Not updating your catalog after new releases. Registration is not a one-time event. Every new release needs its ISRC submitted to SoundExchange. Add this to your release checklist.
What CreateBase Does for SoundExchange
CreateBase registers and reconciles your SoundExchange account as part of every engagement:
- We register you as both featured artist and SRCO (if applicable)
- We submit your complete catalog ISRCs to ensure matching works correctly
- We search the unclaimed royalties database for your recordings
- We file claims for any identified unclaimed funds
- We add SoundExchange to your ongoing royalty monitoring so future releases are captured automatically
Find out what SoundExchange owes you → CreateBase delivers a free personalized royalty gap report within 48 hours.
Frequently Asked Questions
Q: Does my distributor register me with SoundExchange?
A: Some distributors (CD Baby, TuneCore) offer SoundExchange registration as an add-on service. DistroKid does not. Even when distributors offer this, they typically register you only as the sound recording copyright owner — not as the featured artist. The featured artist registration must be done directly with SoundExchange. To ensure you receive both portions of the SoundExchange royalty, register directly at soundexchange.com.
Q: I'm signed to a label — can I still collect SoundExchange royalties?
A: Yes. The featured artist portion (45%) is protected by law and paid directly to the performer, regardless of your label deal. Your label may receive the SRCO portion (50%) if they own the masters, but they cannot take your featured artist royalties. Register with SoundExchange directly using your legal name to receive the featured artist portion.
Q: Does SoundExchange cover international plays?
A: SoundExchange collects royalties only for performances in the United States. International digital performance royalties — from services like Pandora International, or from webcasters operating outside the US — are collected by the equivalent organization in each country (PPL in the UK, GVL in Germany, etc.) and distributed through neighboring rights systems. To collect internationally, you need separate neighboring rights registrations.
Q: What is the difference between SoundExchange and ASCAP/BMI?
A: ASCAP and BMI collect performance royalties for songwriters and publishers — the people who wrote the song. SoundExchange collects digital performance royalties for recording artists and masters owners — the people who recorded the song. For a song you both wrote and recorded, you should be collecting from all three: ASCAP or BMI for the songwriter's performance royalty, SoundExchange for the featured artist royalty, and The MLC for mechanicals.
Q: How often does SoundExchange distribute payments?
A: SoundExchange distributes payments on a quarterly basis. To receive quarterly distributions, you must have a minimum balance of $10 in your account. Balances below $10 accumulate until they reach the threshold. You can opt into annual distributions regardless of balance.
Sources
- SoundExchange Fiscal Report 2024 — $1.05B distributed
- Copyright Royalty Board — Webcasting Rate Decisions — Statutory rates for internet radio
- Digital Millennium Copyright Act, 17 U.S.C. § 114 — Statutory basis for digital performance royalties
- AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund — Non-featured artist royalty distribution