March 31, 2026

SoundExchange Explained: Digital Performance Royalties

If your music plays on Pandora, SiriusXM, or iHeartRadio, money is being collected on your behalf right now by a organization called SoundExchange. Whether that money actually reaches you depends entirely on whether you have registered to claim it.

SoundExchange is a non-profit performance rights organization designated by the U.S. government as the sole administrator of digital performance royalties for sound recordings. It collects from over 3,000 digital service providers and distributes those funds to recording artists and master rights holders. The process is automatic on the collection side - platforms pay whether or not you are registered. On the distribution side, registration is required. Unclaimed funds sit in a holding pool and are eventually redistributed if not claimed.

This guide explains exactly what SoundExchange collects, how the revenue split works, why independent artists who own their masters can claim more than most realize, and how to make sure every dollar in that pool with your name on it finds its way to your account.

What Is SoundExchange and What Does It Actually Collect?

SoundExchange administers the Section 114 statutory license - a provision of U.S. copyright law that governs how digital services pay to broadcast sound recordings. Platforms that operate under this license are required by law to pay royalties, and SoundExchange is the congressionally-designated organization that handles collection and distribution on behalf of all rights holders.

Defining Non-Interactive Digital Streaming Royalties

The key term here is non-interactive. A non-interactive service is one where the listener cannot choose exactly what song plays next - think internet radio, satellite radio, and algorithmically-generated stations. The listener has limited control, similar to tuning into a traditional radio station. These services operate under the statutory license and pay through SoundExchange.

Interactive services, by contrast, let you search for and play any specific song on demand. Spotify, Apple Music, and Tidal are interactive. Because listeners choose exactly what they play, these platforms negotiate direct licenses with rights holders rather than operating under the statutory rate. They do not pay through SoundExchange - they pay master recording royalties through distributors and mechanical royalties through the MLC.

Which Platforms Pay Through SoundExchange (And Which Don’t)

The interactive vs. non-interactive distinction determines where your royalties flow. Here is how the major platforms break down:

Platform	Type	Pays via SoundExchange
Pandora	Internet radio (non-interactive)	Yes
SiriusXM	Satellite radio	Yes
iHeartRadio	Internet radio (non-interactive)	Yes
Amazon Music (stations)	Non-interactive radio mode	Yes

Spotify	On-demand streaming (interactive)	No
Apple Music	On-demand streaming (interactive)	No
Tidal	On-demand streaming (interactive)	No
YouTube Music	On-demand streaming (interactive)	No
AM/FM radio	Terrestrial broadcast	No (no US law yet)

⚠️ AM/FM Radio Still Doesn’t Pay Artists in the US

Unlike virtually every other developed country, the United States does not currently require terrestrial AM/FM radio stations to pay performance royalties to recording artists or master rights holders. Songwriters still receive performance royalties through their PRO when a song airs — but the artist who recorded it receives nothing for that broadcast.

The American Music Fairness Act has been proposed in Congress to change this, but as of now it has not been passed into law.

SoundExchange vs BMI and ASCAP: Knowing the Difference

SoundExchange and performance rights organizations like ASCAP and BMI are frequently confused because they all deal with royalties and they all have the word “performance” somewhere in their description. They protect entirely different rights and pay entirely different people.

What Your PRO Covers That SoundExchange Doesn’t

Your PRO - ASCAP, BMI, or SESAC - collects performance royalties for the composition: the underlying melody and lyrics of a song. These royalties flow to the songwriter and the publisher. If you wrote the song that got played on Pandora, your PRO owes you performance royalties for that composition.

SoundExchange collects royalties for the sound recording: the specific recorded performance of that song. These royalties flow to the featured artist and whoever owns the master recording. The same Pandora play that generates a PRO payment for the songwriter simultaneously generates a SoundExchange payment for the performer and master owner. These are two separate royalty streams from the same event, collected by two separate organizations.

	SoundExchange	Your PRO (ASCAP / BMI)
What it protects	The sound recording (the master)	The composition (the song itself)
Who gets paid	Featured artist + master owner	Songwriter + publisher
Royalty type	Digital performance royalties	Performance royalties
Triggered by	Non-interactive digital streams	Any public performance or broadcast
Key platforms	Pandora, SiriusXM, iHeartRadio	Spotify, radio, venues, TV
Registration cost	Free	Free
Do you need both?	Yes — they cover different rights	Yes — they cover different rights

The practical takeaway: you need registrations with both your PRO and SoundExchange to capture your full royalty picture from non-interactive digital plays. Neither organization covers what the other collects, and neither will notify you if you are missing payments.

The Revenue Split: Artist Share vs. Rights Owner Share

One of the most important and least understood aspects of SoundExchange is how it divides royalties among different parties. The system is designed to separately compensate the performer and the owner of the recording - which for independent artists are often the same person.

The 50-45-5 Distribution Model Explained

SoundExchange divides every royalty payment it receives into three pools before distribution:

How SoundExchange Splits Every Dollar It Collects

50% — Sound Recording Copyright Owner (SRCO): Goes to whoever owns the master recording — typically a label. For independent artists who own their masters, this is you.
45% — Featured Artist: Goes to the performer whose name is on the recording. This is paid directly to the artist regardless of their label deal.
5% — Non-Featured Artists: Distributed by the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund to session musicians and background vocalists.

How Royalties Are Distributed to Featured Artists

The 45% featured artist payment is a critical protection built into the statute: it goes directly to the performer, not through a label. Even if you are signed to a label that owns your masters and collects the 50% rights owner share, you are independently entitled to claim the 45% featured artist share directly from SoundExchange. Labels cannot intercept this payment or apply it against an advance.

For independent artists who both performed on and own the masters for their recordings, the math is even better: you are entitled to both the 50% rights owner share and the 45% featured artist share - totaling 95% of the royalty pool for every play. The remaining 5% goes to the session musician fund regardless. This is one of the strongest financial arguments for independent artists to own their masters.

Independent Artists Can Claim 95% of Every SoundExchange Payment

If you wrote, recorded, and own the master of your music, you qualify for both the rights owner pool (50%) and the featured artist pool (45%). Register both designations when you create your SoundExchange account to make sure you are capturing the full amount.

Artists signed to labels typically only receive the 45% featured artist share directly.

SoundExchange Registration for Independent Artists

Registration with SoundExchange is free and available directly at soundexchange.com. The process requires setting up an account, specifying whether you are registering as a featured artist, a rights owner, or both, and submitting your catalog for matching against their database of over 165 million sound recordings.

The Fastest Way to Register Your Full Catalog with SoundExchange

The registration process itself is straightforward. What takes time is ensuring every recording in your catalog is correctly matched and attributed in SoundExchange’s system - especially if you have released music across multiple distributors or under slightly different artist name variations over time. Accurate ISRCs are essential here: SoundExchange uses them as the primary matching key.

SoundExchange and MLC registration are two separate processes that most artists have to complete independently. Mogul’s catalog registration covers both simultaneously — connecting to your existing streaming releases, verifying your ISRCs, and handling bulk registration so you don’t have to navigate two separate portals for every song in your catalog.

Start your registration →

Submitting Your Catalog and Metadata

When registering, you will need to provide: your legal name or entity name, your artist name(s) as they appear on releases, ISRCs for each recording you are claiming, and your payment details. SoundExchange accepts bulk catalog submissions via their SoundExchange Direct platform, which is the practical route for anyone with more than a handful of releases.

Metadata accuracy matters significantly here. If the artist name on your SoundExchange registration does not match what your distributor submitted to streaming platforms, the matching algorithm may fail to connect your plays to your registration. Use the same exact spelling, capitalization, and formatting everywhere.

How to Claim Unpaid Digital Performance Royalties

SoundExchange maintains a database of royalties it has collected but cannot match to a registered rights holder. These are funds that platforms have paid out for plays of specific recordings, where SoundExchange has not yet been able to connect the recording to a registered account.

Searching the Unclaimed Royalties Database

SoundExchange’s public ISRC search tool at isrc.soundexchange.com lets you search their database of over 165 million sound recordings by artist name, song title, or ISRC. If your recordings appear in the database without a matched rights holder, that is a signal that royalties may be sitting unclaimed in your name.

Search thoroughly. Try your artist name with and without features listed, search alternate song title formats, and search by ISRC if you have them on hand. The data in SoundExchange’s system comes from what platforms report, which sometimes includes inconsistencies in how artist names or track titles are formatted. Once you identify unmatched recordings, register your claim through your SoundExchange Direct account.

Deadlines and Retroactive Payment Policies

SoundExchange does not impose a hard public deadline for claiming retroactive royalties, but funds held in the unmatched pool are periodically reviewed and redistributed. The longer unmatched royalties sit unclaimed, the greater the risk they get reallocated. Registering your full catalog as early as possible - and verifying your registration after every new release - is the most reliable protection.

⚠️ Don’t Wait to Search for Unclaimed Balances

SoundExchange has been collecting and distributing royalties since 2001. If you have been releasing music on non-interactive platforms for years without registering, there may already be accumulated royalties in your name waiting to be claimed.

The sooner you register and file claims, the more of that retroactive balance you can recover before redistribution occurs.

See What Royalties Are Waiting for You

Mogul’s royalty finder scans your catalog against SoundExchange, the MLC, and major collection databases — surfacing unclaimed balances and registration gaps so you know exactly what to claim and where to start.

Run your catalog scan →

Why Independent Artists Leave the Most SoundExchange Money on the Table

Label artists typically have publishing administrators and business managers who handle SoundExchange registration as a matter of routine. Independent artists often do not - and because SoundExchange operates quietly in the background without sending payment notifications to unregistered rights holders, the gap goes unnoticed for years.

Combining SoundExchange with MLC Registration for Complete Coverage

SoundExchange and the Mechanical Licensing Collective (MLC) are the two most commonly missed registrations for independent artists - and they are often missed together. SoundExchange covers digital performance royalties on your sound recording from non-interactive platforms. The MLC covers mechanical royalties on your composition from interactive streaming platforms. Between the two, they represent a substantial portion of the royalty income that most independent artists are currently not collecting.

Neither organization communicates with the other. Registering with one does not notify or register you with the other. Both require separate accounts, separate catalog submissions, and separate claim processes. The practical approach is to handle both registrations in the same session - the information you need (artist name, ISRCs, release dates) is identical for both.

How to Check If You Have an Unclaimed SoundExchange Balance

Even if you already have a SoundExchange account, it is worth auditing whether all of your releases are correctly matched. Here is a focused checklist:

SoundExchange Audit Checklist

Search your artist name at isrc.soundexchange.com and review all matching recordings
Confirm you are registered as both Featured Artist and Rights Owner if you own your masters
Verify that every song in your catalog has a matching ISRC in SoundExchange’s system
Check for alternate name spellings or feature credits that may have created separate unmatched entries
Log into SoundExchange Direct and confirm your payment information is current
After each new release, verify the recording appears in the database within 60–90 days

The entire audit takes less than an hour for most catalogs. Artists who have never done this check often find unmatched recordings generating royalties that have never been distributed. You can start the search now at isrc.soundexchange.com.

SoundExchange Has Been Collecting Your Royalties. Make Sure You’re Registered to Receive Them.

Mogul handles SoundExchange and MLC registration for your full catalog simultaneously — no separate portals, no song-by-song manual entry.

Start your registration →

Frequently Asked Questions

Does SoundExchange pay royalties for Spotify streams?

No. Spotify is an interactive streaming service, meaning listeners can choose exactly what they play on demand. Interactive platforms do not operate under the Section 114 statutory license that SoundExchange administers. Spotify pays master recording royalties directly through distributors and mechanical royalties through the MLC. SoundExchange covers non-interactive platforms like Pandora, SiriusXM, and iHeartRadio.

If I am signed to a label, can I still collect SoundExchange royalties directly?

Yes - partially. The 45% featured artist share is paid directly to the performer by law, regardless of your label arrangement. Labels cannot redirect or recoup against this payment. However, the 50% rights owner share goes to whoever owns the master recording, which is typically your label if you are signed. If your contract includes provisions about digital performance royalties, review those terms carefully. Independent artists who own their masters collect both shares.

How often does SoundExchange pay out royalties?

SoundExchange distributes royalties quarterly. Payments are typically processed in March, June, September, and December for the prior quarter’s activity. There is usually a lag of several months between when a play occurs and when the corresponding royalty is distributed, as SoundExchange must receive, process, and match usage data from thousands of digital service providers before issuing payments.

Do I need a separate SoundExchange account for each artist name I record under?

Yes. If you release music under multiple artist names - for example, a solo project and a band - each distinct artist identity typically requires its own registration or at minimum needs to be linked to your account as an alternate name. Contact SoundExchange directly if you have releases under multiple names to confirm the correct approach, as account structure affects how your recordings get matched and how payments are issued.

What happens to SoundExchange royalties if I never register?

Royalties collected for unregistered recordings are held in SoundExchange’s unmatched pool. SoundExchange periodically searches for the correct rights holders, but funds that remain unmatched beyond the holding period are ultimately redistributed to other registered rights holders proportionally. The exact redistribution timeline is not publicly specified, which is why early registration is always the better approach. There is no automatic notification that funds are waiting for you.

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SoundExchange Explained: Digital Performance Royalties

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Royalties & Registrations

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SoundExchange Explained: Digital Performance Royalties

Know an artist who should read this?

Take Hold of your

Royalties & Registrations

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