SoundExchange Explained: Digital Radio Royalties Made Simple

In the digital music world, SoundExchange is often overlooked by independent musicians, small labels, and even some tech-savvy composers. That oversight costs real money. Digital radio royalties add up, even if you’re not charting millions of streams on Spotify or Apple Music. Pandora, SiriusXM, webcasts—their checks don’t come from your PRO, or your distributor. Enter SoundExchange.

If you’re making music, releasing it on digital platforms, or simply curious about music royalties online, understanding how SoundExchange collects and pays out digital performance royalties is key. Let’s break down what SoundExchange does, how to register, and, most importantly, how to make sure digital radio platforms don’t keep your streaming income for themselves.

What Is SoundExchange, Really?

SoundExchange is the U.S. organization designated by the federal government to collect and distribute digital performance royalties for sound recordings. Let’s be clear—this is NOT a site for your “all-in-one” royalty solution; it does one thing but does it exclusively and by law. If your music is played on something like Pandora radio, SiriusXM, or one of hundreds of non-interactive web radio stations, SoundExchange receives the royalty payments directly from those platforms—then pays you, the master owner or performer, your share. If you aren’t registered, your money sits unclaimed.

These royalties cover “non-interactive digital performances.” So, if a listener can pick exactly what to hear next, that’s not what SoundExchange deals with. Spotify and Apple Music interactive streams pay differently. SoundExchange flies under the radar but works entirely behind the scenes for digital radio—those stations playing whole genres nonstop, algorithmic playlists, stations with a skip-limit rather than full on-demand access.

Digital Performance Royalties vs. Other Royalties

Understanding how SoundExchange fits with ASCAP, BMI, the MLC, and your distributor is half the battle. Digital performance royalties are not the same royalty as what your PRO collects—they’re a separate stream.

Here’s the practical breakdown:

• PROs (ASCAP/BMI/SESAC): Collect performance royalties as a songwriter or publisher for public performances and broadcasts (including radio, live gigs, TV, some streams).
• The MLC: Collects mechanical royalties from digital streaming platforms for the songwriter and publisher.
• Distributors (DistroKid, CD Baby, TuneCore): Pay out master royalties for sales and streams from Spotify, Apple, and sometimes direct digital downloads.
• SoundExchange: Pays digital performance royalties—but ONLY for featured performers and the recording’s master owners, not for songwriters or publishers.

This means if you wrote, recorded, and released a jazz tune on Pandora, Play.MPE, or SiriusXM—SoundExchange pays you for the sound recording as performer and/or master owner, the MLC and PROs pay you for the composition. All are necessary if you want the full picture.

How Digital Radio Actually Triggers Royalties

When digital radio (online or satellite) plays a track, U.S. copyright law says a royalty is owed for the use of the master, separate from the songwriter royalty. The platforms send reporting logs to SoundExchange, which parses play counts and matches tracks using metadata (title, artist name, ISRC).

SoundExchange then slices the pot:

• 45% goes to the featured artist(s) (the main performer, often the band or solo act named on the track),
• 5% is set aside for non-featured performers (like session musicians and backup singers, via third party funds),
• 50% goes to the master rights owner (usually the label, but in indie releases, often you).

If you’re both the featured artist and the master owner, you’re entitled to 95% of SoundExchange royalties for that track. If you’re only the songwriter but never performed on the master, or you don’t own the master, you won’t get paid here.

Who Must Register With SoundExchange? (Hint: Probably You.)

If your music is available on Pandora radio or SiriusXM, you need to register as a performer and as a rights owner if you self-released or own your masters. Your digital distributor, unless they explicitly told you otherwise, does not register with SoundExchange for you—you need to do it yourself.

Session musicians and non-featured players: you may receive your cut through the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund (the 5% share), but not by direct SoundExchange registration.

Record labels need to register as the master owner as well and set up account details if collecting for multiple catalogues.

DIY musicians and small indie labels: You do both roles by default unless you’ve signed those rights away.

The SoundExchange Registration Process: Step-by-Step

Registering is straightforward but requires your catalog to be properly documented:

1. Create a SoundExchange account at soundexchange.com.
2. Register as both a featured artist and a rights owner (if applicable).
3. Submit your track metadata: Song title, artist, ISRC, release date, label/publisher info, and any other details. Check your splits and percentages for accuracy.
4. Claim your repertoire: Match each of your tracks to your performer and master roles in their system.
5. Keep your banking and tax info up to date: Royalties are paid directly by ACH or check.

SoundExchange provides dashboards to track royalties by track and platform. Go the extra step—claim all historical tracks, especially if you’ve been releasing for years.

Common Pitfalls and How to Avoid Lost Royalties

A missing ISRC or typo in a title prevents SoundExchange from matching plays to your account. Doubled entries, name variations, or incomplete metadata commonly block payouts. Always keep a master spreadsheet of every ISRC, master owner, and artist name variation. If you switch labels, update your registration accordingly. If you collaborate, clarify in writing who gets what on the master side and register your splits (SoundExchange can pay each participant directly if the metadata matches).

Another trap is assuming a distributor or aggregator reports and collects for you—almost none do unless you see it itemized in your digital platform agreement. You may have unclaimed money waiting.

Tracking Your SoundExchange Income

SoundExchange pays monthly (and sometimes quarterly, depending on thresholds and your account setup). They offer online statements and export tools so you can analyze which tracks, platforms, and playlists are generating the most digital radio royalties.

If you see a spike—like if your song lands on a featured Pandora radio station or is added to a satellite radio rotation—track your statements and make sure the payout matches expectations. If not, check for name/ISRC mismatches and contact customer support. They’re responsive and exist to get you paid.

Practical Tips for Maximizing Digital Streaming Income

• Register every release: Don’t delay after you upload to aggregators, especially for singles or small batch releases.
• Monitor Pandora and SiriusXM: Set up custom alerts when your music is played on digital radio, or use tools that can notify you.
• Double-check splits: Especially for bands, collaborations, or when a label has partial master rights.
• Keep metadata air-tight: Title, ISRC, performer, master owner, release year—consistency across all platforms and registrations matters.
• Update as you grow: If your registration info changes (name change, brand update, new co-writers), update SoundExchange and all other rights organizations at the same time.

Frequently Asked Questions About SoundExchange

Is SoundExchange only for US musicians?

No. Anyone with sound recordings on eligible US-based digital radio services can collect through SoundExchange, regardless of country. International artists should still register if their music is being played on major US-based platforms.

Can I register older tracks?

Yes, retroactive payments are common. SoundExchange holds unclaimed royalties for a period (several years), so artists regularly collect back royalties after registering late.

What if I’m already signed to a label?

Labels typically register as the rights owner. You still need to register as the featured artist to collect your share. Clarify contractually who claims what.

Why Registering With SoundExchange Matters

Every musician with a digital footprint should register with SoundExchange. Digital radio, satellite broadcasts, webcasts, and the next wave of non-interactive internet radio often fly under the radar, but they’re royalty-generating machines. Leaving this income on the table is both a missed opportunity and just bad business.

Take a half hour, gather your metadata, log in, and register—unlock a stream of music licensing money, and make sure every play and performance is credited to you and your catalog.

Bookmark this page if you need a reference… I’ve seen so many musicians lose out on hundreds if not thousands of dollars in Pandora royalties just because SoundExchange was an afterthought. Don’t let that be you.