What Is SoundExchange?

SoundExchange is a US-based non-profit organisation that collects and pays digital performance royalties for sound recordings. In simple terms: when music is played on non-interactive digital radio in the United States, SoundExchange makes sure the people who actually own and perform on the recording get paid.

It’s not a label. It’s not a distributor. And it’s not a PRO like ASCAP or BMI. It sits in its own lane – and that’s where a lot of confusion comes from.

What Exactly Does SoundExchange Collect?

SoundExchange collects royalties from non-interactive digital uses, such as:

  • Internet radio
  • Satellite radio
  • Cable radio
  • Webcasters

Think services like SiriusXM, Pandora (radio mode), iHeartRadio, and thousands of smaller web radio stations.

👉 Important:
SoundExchange does not collect from Spotify, Apple Music, or YouTube on-demand streams. Those are interactive services and are handled via labels and distributors.

Who Gets Paid?

This is where SoundExchange is different — and powerful.

Royalties collected are split by law as follows:

  • 50% → Sound recording copyright owner (usually the label)
  • 45% → Featured artist(s)
  • 5% → Non-featured musicians & vocalists (via unions)

That means artists get paid directly, even if they don’t own their masters.

If you’re an artist who’s signed a deal that isn’t exactly generous, SoundExchange can still be a crucial income stream.

How Is SoundExchange Different From ASCAP, BMI, PRS, etc.?

Quick comparison:

  • SoundExchange → pays for the recording (digital radio only, US only)
  • ASCAP / BMI / SESAC / PRS → pay for the songwriting/composition

So a single stream can generate two totally separate royalties:

  1. One for the song (writers/publishers)
  2. One for the recording (artists/labels via SoundExchange)

They don’t overlap – they stack.

Who Should Register With SoundExchange?

You should seriously consider registering if you are:

  • An independent artist
  • A featured performer
  • A label or rights holder with recordings played in the US
  • An artist whose music appears on internet or satellite radio

Registration is free, and unclaimed royalties do expire eventually. A lot of money has historically gone unclaimed simply because artists didn’t know SoundExchange existed.

Is SoundExchange Only for US Artists?

No – and this is a big one.

SoundExchange collects US royalties, but artists and labels from anywhere in the world can register and get paid, as long as their recordings are played on US digital radio services.

International artists regularly receive SoundExchange income without ever stepping foot in the US.

Why SoundExchange Actually Matters

For some artists, SoundExchange income can be:

  • Small but steady
  • A meaningful side income
  • Or, in certain genres (dance, electronic, legacy catalog), surprisingly large

It’s one of the few places where:

  • Payments are direct
  • Splits are fixed by law
  • No distributor or label can intercept the artist share

That’s rare in music.