What Is SoundExchange? US Digital Performance Royalties Explained

What is SoundExchange?

SoundExchange is a US non-profit performing rights organisation that collects and distributes digital performance royalties on behalf of recording artists and rights holders. It was established in 2003 under the Digital Millennium Copyright Act (DMCA) to administer a compulsory licence for non-interactive digital radio services. Where Spotify or Apple Music negotiate direct licences with labels for their catalogues, services like Pandora, SiriusXM, and internet radio stations operate under a statutory licence whose royalties are collected and distributed exclusively by SoundExchange. No other organisation in the US performs this function. If you are not registered with SoundExchange, the royalties it collects on behalf of your recordings sit in an escrow account until claimed — or eventually escheat to the state if never claimed.

What does SoundExchange collect?

SoundExchange collects digital performance royalties from non-interactive streaming services — services where the listener does not choose what plays next. Pandora's free radio tier, SiriusXM satellite radio, iHeart Radio, and other internet radio stations all operate under this licence. Interactive services like Spotify, Apple Music, and Tidal negotiate separate direct licences with labels and distributors; those royalties do not flow through SoundExchange. The practical implication for UK artists is that if your music has any airplay on US digital radio — which is likely if you have a US audience of any size — SoundExchange has probably collected royalties in your name. The question is whether you have registered to receive them.

SoundExchange vs PPL: the US/UK comparison

SoundExchange and PPL (Phonographic Performance Limited) are counterpart organisations performing the same function in different territories. PPL collects neighbouring rights in the UK — royalties paid when recordings are broadcast on UK radio, television, and in public venues. SoundExchange collects the US equivalent specifically for digital performance. Both collect on behalf of performers and recording rights holders, not songwriters (whose composition royalties flow through PRS and ASCAP/BMI respectively). UK artists often assume that PPL membership covers their US earnings through a reciprocal agreement. PPL does have reciprocal deals with many international collecting societies, but its direct reciprocal arrangement with SoundExchange covers only some income streams. For full US digital performance royalty collection, UK artists should register directly with SoundExchange as well as PPL.

Who can register with SoundExchange?

SoundExchange pays out separately to two categories of rights holder for each recording: the featured artist (the performer) and the rights holder (typically the record label or, for independent artists, the artist acting as their own label). Independent artists who own their masters receive both distributions — the 45% performer share and the 50% rights holder share — for a combined 95% of the collected royalty. The remaining 5% is distributed to non-featured performers (session musicians, backup singers) through a separate fund. Any performer whose recordings have been played on qualifying US digital services is eligible to register, regardless of territory.

How to register with SoundExchange

Registration is free and handled directly at soundexchange.com:

• Create an account at soundexchange.com and select whether you are registering as a featured artist, rights holder, or both.
• Add your recordings to the SoundExchange catalogue. You can search for existing entries — many artists find their recordings are already in the database with royalties waiting — or add new recordings manually.
• Provide accurate performer credits for each recording. SoundExchange distributes separately to performers and rights holders, so credits must be complete for both distributions to reach the right people.
• Provide banking and payment details to receive US dollar distributions. SoundExchange makes distributions quarterly.

How much do UK artists earn from SoundExchange?

The amount depends entirely on your US audience activity — specifically, how often your recordings are played on Pandora, SiriusXM, and equivalent services. Artists with significant US digital radio airplay can earn several hundred to several thousand dollars per year through SoundExchange. Artists with minimal US digital radio presence will earn correspondingly less. SoundExchange publishes a royalty lookup tool at soundexchange.com/artist-royalty-lookup that allows unregistered artists to see if royalties have been collected on their behalf. Many UK artists who search find unclaimed royalties immediately. The lookup is worth running before registration to confirm that your registrations are already generating income waiting to be claimed.

Code Group Music handles SoundExchange registration and ongoing recording administration as part of its North American rights administration service within the Professional plan. Our catalog assessment identifies whether your recordings are correctly registered with both PPL and SoundExchange and quantifies the collection gaps. Start at codegroupmusic.co.uk/#catalog-assessment.