Digital Performance Rights United States

SoundExchange

SoundExchange

Collects digital performance royalties from non-interactive streaming and satellite radio.

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United States
Territory
Digital Performance Rights
Royalty type
North America
Region
Collects digital performance royalties from non-interactive streaming and satellite radio.
Notable

About SoundExchange

SoundExchange is a nonprofit collective rights management organization that collects and distributes digital performance royalties for sound recordings in the United States. It was spun off from the RIAA in 2003.

While PROs like ASCAP and BMI collect performance royalties for compositions, SoundExchange collects performance royalties for the actual sound recording β€” specifically from non-interactive digital audio transmissions. This includes satellite radio (SiriusXM), internet radio (Pandora free tier), and cable TV music channels.

SoundExchange distributes 50% to the sound recording rights holder (typically the label), 45% to the featured artist, and 5% to a fund for backup musicians and session players. This is distinct from the composition royalties handled by PROs.

How SoundExchange works

Digital Services Report Usage

SiriusXM, Pandora, and other non-interactive services report their playlists to SoundExchange, including every track played.

SoundExchange Matches Recordings

Using ISRC codes and recording metadata, SoundExchange matches each play to the correct sound recording and identifies the rights holders.

Royalties Are Calculated

Based on the statutory rate set by the CRB and the number of plays, royalties are calculated for each recording.

Three-Way Distribution

Royalties are split: 50% to the sound recording owner (label or self-released artist), 45% to the featured artist, and 5% to the AFM/AFTRA fund for session musicians.

Why SoundExchange matters for songwriters

United States is served by SoundExchange for digital performance rights royalties. Without direct registration, international songwriters rely on reciprocal agreements β€” which typically add 12–24 months of delay before royalties reach you.

Frequently asked questions about SoundExchange

Is SoundExchange the same as a PRO?

No. SoundExchange collects digital performance royalties for sound recordings. PROs (ASCAP/BMI) collect performance royalties for compositions. These are different copyrights generating separate income.

Do I need SoundExchange if I use a distributor?

Yes. Distributors handle royalties from interactive streaming (Spotify on-demand). SoundExchange handles non-interactive digital performances (SiriusXM, Pandora radio mode). They cover different uses.

I'm a songwriter but not a performer. Do I need SoundExchange?

If you write songs but someone else records them, SoundExchange royalties go to the performer and label β€” not the songwriter. Your songwriter royalties come through your PRO and publishing admin.

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