SoundExchange

SoundExchange is a non-profit collective management organization designated by the U.S. government as the sole entity to administer statutory digital performance royalties for sound recordings under Section 114 of the U.S. Copyright Act. It collects royalties from non-interactive streaming services (Pandora, SiriusXM, iHeartRadio), satellite radio, digital cable, and internet radio, then distributes them to recording artists and sound recording copyright owners. It has distributed more than $13 billion to over 800,000 music creators since its founding in 2003.

How SoundExchange Works

SoundExchange collects digital performance royalties from three categories of services: non-interactive streaming platforms (like Pandora Radio), satellite radio (SiriusXM), and digital cable and satellite music services. These services pay statutory royalties to SoundExchange, which then distributes the funds to rights holders.

Unlike performing rights organizations (ASCAP, BMI, SESAC) that collect royalties for songwriters and publishers, SoundExchange collects royalties for recording artists and sound recording copyright owners (typically record labels). This is the neighboring rights side of the music industry. The royalties are split as follows: 50% goes to the sound recording copyright owner (usually the label), 45% goes to the featured performer, and 5% goes to a union fund that distributes to non-featured musicians and vocalists (AFM and SAG-AFTRA Intellectual Property Rights Distribution Fund).

SoundExchange operates the lowest administration rate among comparable collective management organizations worldwide. The organization is governed by an 18-member Board of Directors, with half representing sound recording copyright owners and half representing featured and non-featured recording artists.

In 2025, SoundExchange distributed $991.5 million in royalties (unaudited), a 5.9% decrease from 2024. Q4 2025 distributions were $247.7 million. The year-over-year decline was attributed to fewer settlements than the previous year, lower reported SiriusXM revenue, and the cumulative impact of SiriusXM underpayment that led SoundExchange to sue the satellite broadcaster in 2023. By March 2026, SoundExchange surpassed $13 billion in lifetime distributions.

In February 2026, SoundExchange announced 17 new international CMO agreements, increasing its international royalty service coverage to 91% of the available global neighboring rights market. New agreements were signed with organizations in Barbados, Paraguay, Kenya, Denmark, Portugal, and other countries. Nearly 500,000 artists and rights owners trust SoundExchange to collect their international royalties.

SoundExchange also became the first non-member organization of SCAPR (Societies' Council for the Collective Management of Performers' Rights) to create and issue International Performer Numbers (IPNs) in October 2024, streamlining international royalty matching.

Real-World Example

A recording artist releases a song that gets 2 million plays on Pandora Radio in a quarter. Pandora pays a statutory per-stream royalty rate to SoundExchange for each of those plays. SoundExchange collects the full amount and splits it: 50% goes to the sound recording copyright owner (the label that released the recording), 45% goes to the featured recording artist, and 5% goes to the AFM and SAG-AFTRA fund for non-featured musicians.

If the same recording is played on SiriusXM, SiriusXM pays SoundExchange a royalty based on its gross revenue and the number of plays. SoundExchange distributes those funds using the same 50/45/5 split.

If that recording is also played on a digital radio service in Germany, SoundExchange's agreement with the German neighboring rights CMO means the German organization collects those royalties and remits them to SoundExchange, which distributes them to the artist. With coverage of 91% of the global neighboring rights market as of 2026, SoundExchange can collect international royalties from most major markets.

A featured recording artist with 20 songs receiving regular play on Pandora and SiriusXM might earn anywhere from $5,000 to $200,000 or more annually through SoundExchange, depending on the scale of usage. The 45% featured artist share is paid directly to the performer, separate from any label royalties.

Why It Matters for Independent Artists

If you are a recording artist or sound recording copyright owner based in the United States, SoundExchange collects royalties that no other organization collects. ASCAP, BMI, and SESAC collect performance royalties for songwriters and publishers. SoundExchange collects digital performance royalties for recording artists and labels. These are two separate revenue streams for two different sets of rights holders.

If you are both the songwriter and the recording artist, you should belong to a PRO (ASCAP, BMI, or SESAC) for your songwriter royalties and be registered with SoundExchange for your recording artist royalties. Many independent artists miss SoundExchange royalties because they assume their PRO membership covers everything.

Registration is free. Create an account at soundexchange.com, register your recordings with proper ISRC codes, and submit your catalog. If you own your own master recordings (as many independent artists do), you claim both the featured performer share (45%) and the sound recording copyright owner share (50%), receiving 95% of the royalties collected for your recordings.

SoundExchange does not collect royalties for interactive streaming (Spotify, Apple Music, Amazon Music). Those services pay mechanical and performance royalties through other channels (mechanical societies, PROs, and distributors). SoundExchange only collects for non-interactive digital services where listeners cannot choose specific songs on demand.

If your music is played on digital radio internationally, SoundExchange's expanded CMO network covering 91% of the global neighboring rights market can collect those royalties. Ensure your recordings are registered with accurate metadata so international usage can be matched and royalties can flow back to you.

Related Resources

• Neighboring Rights - What neighboring rights are and how they differ from performance rights
• Performing Rights Organizations (PRO) - How PROs like ASCAP and BMI differ from SoundExchange
• Performance Royalties - How performance royalties are generated and collected
• Mechanical Royalties - How mechanical royalties work for interactive streaming
• Collective Management Organization (CMO) - How CMOs operate globally
• SoundExchange Official Website - Register your recordings and claim your royalties
• Use our Streaming Royalty Calculator to estimate your interactive streaming earnings