{"id":5787,"date":"2026-11-07T14:05:00","date_gmt":"2026-11-07T14:05:00","guid":{"rendered":"https:\/\/routenote.com\/radar\/?p=5787"},"modified":"2026-11-02T22:05:57","modified_gmt":"2026-11-02T22:05:57","slug":"soundexchange-50-45-5-who-gets-paid","status":"publish","type":"post","link":"https:\/\/routenote.com\/radar\/soundexchange-50-45-5-who-gets-paid\/","title":{"rendered":"SoundExchange 50\/45\/5: Who Gets Paid?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Independent artists can receive several different kinds of music royalties.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some come through a digital distributor.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Others are collected by organisations responsible for particular rights.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the United States, SoundExchange handles eligible digital performance royalties for certain non-interactive uses of sound recordings.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the most important things to understand is how those royalties are divided.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The standard statutory allocation is commonly described as the 50\/45\/5 split.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What does SoundExchange collect?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SoundExchange collects qualifying digital performance royalties for sound recordings used by eligible non-interactive digital services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples can include certain activity on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>SiriusXM<\/li>\n\n\n\n<li>Pandora radio services<\/li>\n\n\n\n<li>Internet radio<\/li>\n\n\n\n<li>Other eligible digital radio services<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These are different from ordinary on-demand Spotify or Apple Music streams.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The distinction matters because the licensing and payment systems are different.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the 50\/45\/5 split?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SoundExchange explains that eligible royalties are allocated as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>50% to the sound-recording copyright owner<\/li>\n\n\n\n<li>45% directly to the featured artist or artists<\/li>\n\n\n\n<li>5% to a fund for non-featured performers<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The five-percent allocation is not simply a direct payment divided equally among every session musician on a recording.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is administered through the relevant performer funds and arrangements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">An example using $100<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine an eligible recording generates $100 in royalties under the relevant statutory system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The illustrative allocation is:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><th>Recipient category<\/th><th>Share<\/th><\/tr><tr><td>Sound-recording owner<\/td><td>$50<\/td><\/tr><tr><td>Featured artist or artists<\/td><td>$45<\/td><\/tr><tr><td>Non-featured performer fund<\/td><td>$5<\/td><\/tr><tr><td>Total<\/td><td>$100<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This explains the statutory allocation before considering any separate contractual arrangements or applicable adjustments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is not a prediction of how much any particular track will earn.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What if the artist owns the master?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">An independent musician may be both:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The featured artist<\/li>\n\n\n\n<li>The sound-recording copyright owner<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">In that situation, the person may be entitled to receive money associated with both roles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, a self-releasing artist who owns the entire master could potentially be eligible for the rights-owner allocation and the featured-performer allocation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, registration information and any agreements with labels or administrators still need to be correct.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What if a label owns the recording?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If a record label owns the master, it may be entitled to the sound-recording owner&#8217;s share.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The featured performer may separately receive the performer allocation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those roles should not be confused.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A traditional recording royalty agreement between an artist and label does not automatically replace the statutory SoundExchange allocation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What about featured collaborations?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If several performers qualify as featured artists, the featured-artist share may need to be divided between them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The correct allocation can depend on the applicable agreements and payment instructions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Make sure the relevant featured-performer information is accurate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Do not assume that a Spotify featured-artist credit alone resolves every SoundExchange registration question.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What about producers?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Producers, mixers and engineers do not automatically receive the same statutory allocation as featured artists.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, SoundExchange has a Letter of Direction process through which qualifying creative participants can receive certain payments when authorised by the relevant featured artist.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That is separate from ordinary distribution royalty splits.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do Spotify streams create SoundExchange royalties?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Ordinary interactive, on-demand Spotify and Apple Music streams generally do not generate the statutory SoundExchange royalties described here.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your distributor handles the relevant recording revenue through its streaming agreements.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Those same streams may generate separate songwriting royalties through other collection systems.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How do artists check their registration?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Start with SoundExchange&#8217;s official registration service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Check whether you are registered as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A featured performer<\/li>\n\n\n\n<li>A sound-recording copyright owner<\/li>\n\n\n\n<li>Both, where appropriate<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Make sure the organisation has the correct recording and payment information.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Also verify whether a label or administrator already collects the rights-owner allocation on your behalf.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Can artists outside the US register?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">SoundExchange states that eligible artists and rights owners do not have to be US citizens to register.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A recording generating qualifying US digital performance royalties may create a claim even when the musician lives elsewhere.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, international neighbouring-rights arrangements can involve other organisations, so check your existing mandates before creating overlapping collection claims.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The SoundExchange 50\/45\/5 split separates three different rights-holder categories.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding those categories can help independent artists identify which allocations they may be entitled to receive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The key is to establish whether you are the featured artist, the recording owner or both, and ensure the correct information has been registered.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Independent artists can receive several different kinds of music royalties. Some come through a digital distributor. Others are collected by organisations responsible for particular rights. In the United States, SoundExchange handles eligible digital performance royalties for certain non-interactive uses of sound recordings. One of the most important things to understand is how those royalties are divided. The standard statutory allocation is commonly described as the 50\/45\/5 split. What does SoundExchange collect? SoundExchange collects qualifying digital performance royalties for sound recordings used by eligible non-interactive digital services. Examples can include certain activity on: These are different from ordinary on-demand Spotify or&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2124,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[1237,1233,1234],"coauthors":[2],"class_list":["post-5787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-neighbouring-rights","tag-soundexchange","tag-usa"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SoundExchange 50\/45\/5: Who Gets Paid? - RouteNote - Radar<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/routenote.com\/radar\/soundexchange-50-45-5-who-gets-paid\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SoundExchange 50\/45\/5: Who Gets Paid? - RouteNote - Radar\" \/>\n<meta property=\"og:description\" content=\"Independent artists can receive several different kinds of music royalties. 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