SoundExchange collects millions of dollars in digital performance royalties every year on behalf of recording artists and master rights holders. If you have music on Pandora, SiriusXM, iHeartRadio, or other non-interactive digital radio platforms, some of that money belongs to you.
But you can only collect it if you're registered. Here's exactly how to do it.
What Is SoundExchange?
SoundExchange is a non-profit organization designated by the U.S. government to collect and distribute digital audio performance royalties for master recordings. When your recorded music is played on:
- Pandora (internet radio and non-interactive streaming)
- SiriusXM satellite radio
- iHeartRadio
- Amazon Music (non-interactive stations)
- Digital cable music channels
- Internet radio stations and webcasters
…SoundExchange collects the performance royalty and distributes it to the rights holders. These are separate from the performance royalties collected by your PRO (ASCAP, BMI, SESAC) for the composition — SoundExchange pays for the sound recording itself.
SoundExchange pays two parties for every recording:
- The featured artist (the vocalist or performing artist) receives 45%
- The sound recording copyright owner (typically the label, or the artist if they're independent) receives 50%
- Non-featured musicians and vocalists (session players) collectively receive 5%, distributed by the AFM/SAG-AFTRA Intellectual Property Rights Distribution Fund
Who Should Register with SoundExchange?
You should register if you are:
- A recording artist whose music is played on digital radio platforms
- An independent artist who owns your master recordings
- A music producer who owns a percentage of the master recordings
- A record label or music company that owns master rights
If you're an independent artist who releases and owns your own masters, you may need to register twice — once as the featured artist and once as the sound recording copyright owner — to collect both the 45% and the 50%.
How to Register with SoundExchange
Step 1: Go to SoundExchange.com
Navigate to soundexchange.com and click “Register.”
Step 2: Choose Your Role
You'll be asked whether you're registering as:
- A featured artist
- A rights owner (record label, independent artist who owns masters, etc.)
- A non-featured musician or vocalist
Independent artists who own their masters should register as both a featured artist and a rights owner. These can be registered as separate accounts or linked under a single entity, depending on your situation.
Step 3: Provide Your Information
You'll need to provide:
- Your legal name (and any recording names/aliases)
- Contact information
- Tax ID or Social Security number (for payment purposes)
- Banking information for direct deposit
Step 4: Register Your Recordings
Once your account is active, you can register your recordings. SoundExchange's database of recordings is called the Alliance of Artists and Recording Companies (AARC) database, and adding your recordings helps ensure accurate matching and payment.
To register a recording, you'll typically need:
- The song title
- The artist name(s)
- The ISRC code (the standard identifier for the specific recording)
- The album name (if applicable)
- The release year
Step 5: Claim Unclaimed Royalties
SoundExchange maintains a database of royalties that have been collected but not yet matched to a registered rights holder. After registering, search for your recordings in their unclaimed royalties database. You may have royalties waiting that date back several years.
If You Have Collaborators: File a Letter of Direction
By default, SoundExchange pays the featured artist listed on the primary account. If you co-own the master with a producer, co-artist, or other collaborator, they won't receive their share automatically.
A Letter of Direction (LOD) is a document that tells SoundExchange how to split the payment between multiple rights holders. For example, if you own 70% of the master and your producer owns 30%, an LOD directs SoundExchange to pay accordingly.
The LOD must be signed by all parties with a stake in the recording and references the ISRC code of the specific recording.
At musicsplitsheets.com, the $5 bundle generates both a split sheet (documenting your agreed-upon ownership percentages) and a Letter of Direction (the SoundExchange instruction document) together, from a single form.
How Often Does SoundExchange Pay?
SoundExchange distributes royalties quarterly. The exact payment schedule is published on their website, but generally, royalties collected in one quarter are distributed the following quarter. There's a minimum payment threshold — if your accumulated royalties are below the threshold, they carry over to the next quarter.
What If You've Never Registered?
SoundExchange can only pay out royalties going forward from registration for most scenarios. However, they do maintain historical royalty pools and in some cases can pay retroactive royalties if you can document your rights. After registering, it's worth contacting SoundExchange to inquire about any historical royalties for your recordings.
The most important thing: register now. Every day you're not registered is a day your digital radio royalties are being collected and held (or redistributed) rather than paid to you.