SoundExchange: The Royalty You're Probably Not Collecting

Pop quiz: Where do you collect royalties from Pandora, SiriusXM, and internet radio?

If you said "my distributor" or "my PRO," you're leaving money on the table.

The answer is SoundExchange—and most independent artists have never even heard of it.

What is SoundExchange?

SoundExchange is a nonprofit organization that collects digital performance royalties for sound recordings in the United States.

This is DIFFERENT from:

• Your distributor (which collects interactive streaming revenue from Spotify/Apple Music).
• Your PRO (which collects performance royalties for the composition, not the recording).

SoundExchange specifically handles non-interactive digital performances:

• Pandora (the radio-style, lean-back experience)
• SiriusXM satellite radio
• iHeartRadio (when used in non-interactive mode)
• Internet radio stations
• Cable music channels (like Music Choice)

The Money Split

Here's where SoundExchange gets exciting for artists:

Read that again. If you're the featured artist on your own independent release, you get:

• 45% as the featured artist
• 50% as the sound recording owner
• = 95% of the royalties

This is paid directly to you—even if you're signed to a label. The 45% featured artist share is sacrosanct.

Why Your Distributor Isn't Collecting This

DistroKid, TuneCore, and other distributors handle interactive streaming—where users choose what to play (Spotify, Apple Music, Amazon Music).

SoundExchange handles non-interactive streaming—where a station or algorithm chooses for the listener.

These are two completely separate revenue streams. Most artists only collect the first.

How to Register

1. Go to SoundExchange.com and create an account.
2. Register as a Performing Artist (if you're the featured vocalist/performer).
3. Register as a Sound Recording Owner (if you own your masters).
4. Add your catalog so they can match plays to your account.

Registration is free. There's no reason not to do it.

The Unclaimed Money Problem

SoundExchange is sitting on hundreds of millions of dollars in unclaimed royalties.

If you haven't registered, your money is just... waiting. After a certain period, it may get distributed to major labels based on market share (yes, really).

Don't let your hard-earned streams benefit someone else's bottom line.

SoundExchange vs. Your PRO

You need BOTH. They don't overlap. They complement each other.

The Bottom Line

If you've released music that's been played on Pandora, SiriusXM, or any internet radio station, you have money waiting for you.

1. Register at SoundExchange.com.
2. Register at your PRO (ASCAP/BMI).
3. Use SplitChord to document who owns what before you release.

That's the trifecta of a professional music business setup.