SoundExchange Complete Guide: Digital Royalties
What is SoundExchange?
While PROs like ASCAP and BMI collect royalties for songwriters, SoundExchange collects "Digital Performance Royalties" on behalf of performers (artists) and master owners (labels).
Specifically, SoundExchange collects money from non-interactive digital broadcasts. Think Pandora Radio, SiriusXM, and iHeartRadio. Every time your song is played on these services, you are earning a royalty that only SoundExchange can collect for you.
The Difference: PROs vs. SoundExchange
It can be confusing, but here's the breakdown:
- ASCAP/BMI: Collect money for the SONG (Composition). This goes to the Lyricist/Composer.
- SoundExchange: Collects money for the RECORDING (Sound Recording). This goes to the Singer/Musician/Producer.
If you wrote the song AND sang it, you need to be registered with both a PRO and SoundExchange to get 100% of your money.
Why You Must Register
Digital royalties aren't just for viral hits. Even a few hundred plays on Pandora can result in a check. Unlike interactive streaming (Spotify/Apple Music), which is handled by your distributor, these non-interactive royalties are mandated by law and must be claimed directly through SoundExchange.
How to Register (Free)
- Go to SoundExchange.com: Registration is free for artists and owners.
- Submit Your Music: Upload a catalog of your releases so SoundExchange knows which songs are yours.
- Wait for Direct Deposit: They pay monthly or quarterly once you've hit their minimum threshold.
A Global Opportunity
SoundExchange doesn't just collect in the USA. They have reciprocal agreements with over 50 international collection societies. This means if your music gets played on digital radio in Europe or Asia, SoundExchange will work to get that money back to you.
Conclusion
SoundExchange is often forgotten by independent artists, leading to millions of dollars sitting unclaimed. Don't let your money stay in the "black box." It only takes 30 minutes to register, and it ensures your performance royalties are protected for the life of your music.