What Is SoundExchange?
SoundExchange is the US organization responsible for collecting and paying out digital performance royalties earned when sound recordings are played on non-interactive platforms like satellite radio (SiriusXM) and internet/webcasting radio (Pandora's non-interactive tier, iHeartRadio webcasts, and similar services). Unlike a PRO, SoundExchange pays the recording side of royalties — meaning artists and master rights owners — not the songwriting/composition side.
If you've heard the name SoundExchange but aren't sure whether it applies to you or how it's different from ASCAP, BMI, or The MLC, here's a complete breakdown.
What SoundExchange Actually Collects
SoundExchange administers what's called the digital performance royalty, which is generated specifically by non-interactive digital audio transmissions of sound recordings. This is a distinct legal category under US copyright law (established by the Digital Performance Right in Sound Recordings Act and later the DMCA), separate from traditional terrestrial radio and separate from interactive/on-demand streaming.
Platforms that generate SoundExchange royalties include:
- SiriusXM (satellite radio)
- Non-interactive internet radio (like Pandora's standard radio stations, where listeners can't pick specific songs on demand)
- Certain webcasters and digital cable/satellite TV music services
Platforms that do not generate SoundExchange royalties:
- Traditional AM/FM terrestrial radio (in the US, terrestrial radio doesn't pay a sound recording performance royalty at all — a longstanding gap in US copyright law)
- Interactive/on-demand streaming like Spotify or Apple Music on-demand — those generate master royalties paid through your distributor and mechanical royalties through The MLC instead
Who Gets Paid by SoundExchange
This is where SoundExchange differs meaningfully from a PRO. When SoundExchange collects a digital performance royalty, it splits the payment three ways:
| Recipient | Approximate Share |
|---|---|
| Featured artist(s) | A direct share, paid straight to the performing artist |
| Master rights owner (you, your label, or your distributor) | The largest share, for ownership of the recording |
| Non-featured musicians/vocalists | A smaller share, distributed via union-affiliated funds (AFM/SAG-AFTRA) for session players and backing vocalists |
This structure means that as a featured independent artist, you can be owed money directly from SoundExchange even if you also collect separately through your distributor — which is exactly why registering matters.
How to Register With SoundExchange
- Go to soundexchange.com and create a free account.
- Register as the featured artist and/or as the copyright owner (rights holder), depending on your situation. If you own your own masters (common for independent artists), you'll register in both roles to collect both shares.
- Provide your recording metadata, including ISRC codes for each track — see what is an ISRC code for details on how these are assigned.
- Add your payment details so SoundExchange can pay out matched royalties.
- Keep your catalog updated as you release new music, since SoundExchange matches royalties to registered recordings using ISRC and metadata.
Registration is free, and there's no reason for an eligible independent artist to skip it — unclaimed royalties otherwise sit unpaid.
SoundExchange vs. BMI vs. ASCAP: What's the Difference?
This is one of the most common points of confusion for independent artists, since all three organizations collect "performance" royalties — but for different rights and different platforms.
| SoundExchange | ASCAP / BMI (PROs) | |
|---|---|---|
| Royalty type | Digital performance royalty | Performance royalty |
| Rights covered | Sound recording (the master) | Musical composition (the song itself) |
| Platforms covered | Non-interactive digital (satellite radio, internet radio) | Terrestrial radio, live venues, TV/film performances, interactive streaming performance royalties |
| Who registers | Featured artists and master rights owners | Songwriters and publishers |
| Who gets paid | Artists, master owners, session musicians/vocalists | Songwriters, publishers |
| Membership model | Free, single registration (not exclusive) | Choose one PRO to join (ASCAP, BMI, or SESAC) |
The key distinction: SoundExchange pays for use of the recording. PROs pay for use of the composition. If you wrote and recorded your own song, you can be owed royalties from both — but only if you're registered with both. Learn more about the composition side in music publishing 101.
SoundExchange in the Bigger Royalty Picture
SoundExchange is just one of several royalty streams an independent artist should be collecting. Here's how it fits with the others:
| Royalty Type | Who Collects It | Covers |
|---|---|---|
| Master recording royalties | Your distributor | Interactive streaming (Spotify, Apple Music, etc.) |
| Mechanical royalties | The MLC | Interactive streaming/downloads of the composition |
| Performance royalties (composition) | PRO (ASCAP/BMI/SESAC) | Radio, live performance, TV/film, interactive streaming |
| Digital performance royalties (recording) | SoundExchange | Satellite radio, non-interactive internet radio |
To make sure you're not leaving money unclaimed, you generally need to be registered across all four categories that apply to your situation — not just distributed on streaming platforms. See how much does Spotify pay per stream for how the master royalty side works specifically on interactive platforms, and music copyright 101 for the legal foundation behind these separate rights.
Do You Need to Register With SoundExchange?
You should register with SoundExchange if:
- You are a featured artist on a released recording (regardless of whether you wrote the song)
- You own your masters (true for most independent artists distributing their own music)
- Your music has any realistic chance of airplay on satellite radio or non-interactive internet radio
Even if you're not currently getting satellite or internet radio play, registering costs nothing and ensures you're set up to collect royalties the moment that play happens — including from older catalog tracks that might get picked up unexpectedly.
FAQ
Is SoundExchange the same as a PRO like ASCAP or BMI?
No — SoundExchange collects digital performance royalties for the sound recording (the master), while PROs like ASCAP and BMI collect performance royalties for the musical composition. They cover different rights and different platforms, so independent artists who write and record their own music typically need to register with both.
Does SoundExchange pay royalties for Spotify streams?
No — Spotify and other on-demand/interactive streaming platforms don't generate SoundExchange royalties. SoundExchange only covers non-interactive digital platforms like satellite radio and certain internet radio services; Spotify royalties are paid through your distributor and, for the composition side, through The MLC.
Is SoundExchange registration free?
Yes — registering with SoundExchange as a featured artist or rights holder is completely free. There's no fee to create an account or register your recordings.
Who actually gets paid by SoundExchange — the artist or the label?
Both, but for different shares — the featured artist receives a direct share paid straight to them regardless of label status, while the master rights owner (which may be the artist, a label, or whoever owns the recording) receives a separate, typically larger share. Independent artists who own their own masters can collect both shares if registered correctly.
Does terrestrial (AM/FM) radio pay SoundExchange royalties?
No — traditional AM/FM terrestrial radio in the US does not pay a sound recording performance royalty at all, which is a well-known gap in US copyright law. Terrestrial radio does pay composition performance royalties to PROs like ASCAP and BMI, but nothing to SoundExchange.
Make Sure Your Recordings Are Ready to Collect Royalties
Accurate ISRC codes and metadata are what allow organizations like SoundExchange to match plays back to you. Banger for Artists handles your distribution with clean, properly formatted metadata from day one. Get started with Banger.
