SoundExchange Royalties: What They Are and How to Collect Them

Most independent artists know about streaming royalties from Spotify and Apple Music. Fewer know about SoundExchange, the organization that collects an entirely separate type of royalty that many musicians never claim. According to SoundExchange's own reports, they have distributed over $10 billion in royalties since their founding, but billions more remain uncollected because artists and labels have not registered.

If your music has ever been played on internet radio, satellite radio (like SiriusXM), or any non-interactive digital platform, you are likely owed money from SoundExchange. This guide explains what they collect, who qualifies, and how to start getting paid. It connects to our broader coverage of music royalties and the complete guide to publishing royalties.

What Is SoundExchange?

SoundExchange is a nonprofit organization designated by the U.S. Copyright Royalty Board to collect and distribute digital performance royalties for sound recordings. These are royalties generated when your actual recording (not just the underlying song) is played on eligible digital platforms.

The Key Distinction

There are two separate copyrights in every piece of recorded music:

Your PRO handles the composition side. SoundExchange handles the sound recording side for non-interactive digital services. These are completely separate payments, and you need to be registered with both to collect everything you are owed.

Who Pays SoundExchange?

SoundExchange collects royalties from non-interactive digital music services. Non-interactive means the listener cannot choose specific songs on demand. This includes:

What SoundExchange Does Not Collect

SoundExchange does not collect royalties from:

Your Spotify royalties come through your distributor. Your SoundExchange royalties come from a completely different set of platforms.

How Much Does SoundExchange Pay?

SoundExchange distributes royalties based on statutory rates set by the Copyright Royalty Board. The rates vary by platform type, but here are the general numbers:

Satellite radio (SiriusXM): The rate is negotiated as a percentage of revenue. In recent rate periods, this has been approximately 15–17% of SiriusXM's gross revenue, distributed across all played recordings.

Internet radio (Pandora, etc.): Rates are set per-play. For 2024 to 2025, the statutory rate is approximately:

Example Calculation

If your song received 50,000 plays on Pandora's free tier:

Individually, these may seem small, but they add up. Artists with moderate radio play can earn hundreds or thousands per quarter from SoundExchange alone, completely separate from their streaming income. Use our streaming royalty calculator to model your overall income picture.

How Royalties Are Split

SoundExchange splits digital performance royalties three ways:

If you are an independent artist who owns your own masters, you receive both the owner share (50%) and the featured artist share (45%), totaling 95% of the royalties. This is one of the major financial advantages of being independent.

Registration Process

Step 1: Create Your Account

Visit soundexchange.com and click “Join.” You will need to register in at least one of two capacities:

Most independent artists should register as both.

Step 2: Provide Your Information

You will need:

Step 3: Register Your Recordings

After your account is created, you need to register the specific recordings you want to collect royalties for. This is called building your repertoire. For each recording, you will provide:

The ISRC code is critical because SoundExchange uses it to match plays to recordings. If your distributor assigned ISRCs to your tracks, use those exact codes. You can find your ISRCs in your distributor's dashboard.

Step 4: Wait for Payment

SoundExchange pays quarterly:

There is roughly a 5–6 month delay between the performance quarter and the payment date. The minimum payout is $10 before SoundExchange issues payment.

Common Mistakes That Cost Musicians Money

1. Not Registering at All

SoundExchange holds unclaimed royalties for three years before they are redistributed. If you have had music played on internet radio or SiriusXM in the past three years and have not registered, you may have money waiting for you.

2. Only Registering as an Artist

If you own your masters (which most independent artists do), register as both a Featured Artist AND a Sound Recording Copyright Owner. Without the SRCO registration, you miss the 50% owner share.

3. Not Registering All Recordings

SoundExchange can only pay you for recordings in your repertoire. If you have released 20 songs but only registered 5, you are only collecting on those 5. Take the time to register your full catalog.

4. Confusing SoundExchange with Your PRO

SoundExchange and ASCAP/BMI are not the same thing. They collect different types of royalties from different sources. You need both. Check our PRO comparison guide to make sure you are covered on the composition side too.

5. Incorrect ISRC Codes

If your ISRC codes do not match what the digital services report, SoundExchange cannot match plays to your recordings. Double-check every code against your distributor's records.

SoundExchange vs Other Collection Organizations

Understanding where SoundExchange fits in the royalty ecosystem helps you make sure nothing slips through the cracks.

Frequently Asked Questions

Q: Is SoundExchange free to join?

Yes. There is no fee to register with SoundExchange as either a Featured Artist or Sound Recording Copyright Owner.

Q: Do I need SoundExchange if I already have a distributor?

Yes. Your distributor collects royalties from interactive streaming services (Spotify, Apple Music, etc.). SoundExchange collects from non-interactive digital services (internet radio, satellite radio). These are separate royalty streams. You need both.

Q: Can my label collect SoundExchange royalties on my behalf?

A label can register as the Sound Recording Copyright Owner and collect the 50% owner share. However, the 45% featured artist share is always paid directly to the artist, even if they are signed to a label. SoundExchange will never pay the artist's share to a label without explicit written authorization.

Q: I am not based in the US. Can I still register?

Yes. SoundExchange collects royalties for performances that occur on US digital services, regardless of where the artist is based. If your music is played on Pandora or SiriusXM, you are owed royalties even if you live outside the United States.

Q: How do I know if my music is being played on SoundExchange-eligible platforms?

After registering, SoundExchange provides tools and reporting that show your play data and earnings. You can also check if your music appears on Pandora, SiriusXM, or other internet radio stations independently.

Q: What happens to unclaimed royalties?

SoundExchange holds unclaimed royalties for three years. After that, they are distributed to registered members proportionally based on their share of total plays. Register as soon as possible to claim any back royalties.

Start Collecting Your SoundExchange Royalties

SoundExchange royalties are often overlooked income that many independent artists leave on the table. The registration process takes about 30 minutes, and once your repertoire is loaded, collections happen automatically every quarter.

If you are an independent artist who owns your masters, you could be collecting 95% of every digital performance royalty your recordings generate. Combined with your PRO royalties, mechanical royalties, and distributor payments, this brings you one step closer to collecting every penny your music earns.

Next Steps