What Is SoundExchange? How to Collect Your Digital Performance Royalties in 2026
If you release music and you have never logged into a SoundExchange account, there is a real chance money is sitting in a pile with your name on it. SoundExchange is the U.S. organization that collects digital performance royalties for sound recordings — the royalty generated every time your recording is played on non-interactive digital platforms like Pandora, SiriusXM, and internet radio. It is one of the most overlooked income streams in the independent music business, largely because it does not come from Spotify or Apple Music streams (the ones artists obsess over) and because nobody pays it to you automatically. You have to register and claim it.
This guide explains what SoundExchange is, how its royalties are split (the well-known 45/50/5 rule), who needs to register, how it differs from a PRO and from The MLC, and the exact steps to set up your account and check for unclaimed SoundExchange royalties. GMS is a former music-promotion agency — we explain and compare, we do not sell you anything — so treat this as a plain-English map of a system that was deliberately built to be confusing.
Table of Contents
- 1. What Is SoundExchange?
- 2. Which Royalty Does SoundExchange Actually Collect?
- 3. The 45/50/5 Split Explained
- 4. Who Should Register With SoundExchange?
- 5. SoundExchange vs. a PRO vs. The MLC
- 6. How to Register With SoundExchange (Step by Step)
- 7. Unclaimed Royalties: Check Before They Disappear
- Frequently Asked Questions
1. What Is SoundExchange?
SoundExchange is a non-profit collective management organization designated under U.S. copyright law to collect and distribute digital performance royalties for the use of sound recordings on certain digital platforms. In plain terms: when a non-interactive digital service plays your recording, U.S. law requires that service to pay a royalty for the recording itself — and SoundExchange is the single body that collects that money and pays it out to the people entitled to it.
The key phrase is sound recording. SoundExchange deals with the master — the specific recorded performance — not the underlying song you wrote. That distinction is the source of most confusion in this whole area, and we untangle it in section 5. For now, remember that SoundExchange money is recording money, paid to the performers and the master owner.
2. Which Royalty Does SoundExchange Actually Collect?
SoundExchange collects digital performance royalties from non-interactive digital services that operate under a statutory license. The cleanest way to understand “non-interactive” is this: the listener cannot pick the exact song on demand. Think of it as digital radio rather than on-demand streaming.
Platforms that pay through SoundExchange include:
- SiriusXM (satellite radio)
- Pandora (radio-style mode)
- Internet and webcast radio, including stations and aggregators that stream over the internet
- Other digital “radio-style” services operating under the statutory license
Just as important is what SoundExchange does not cover. Spotify and Apple Music on-demand streams do not pay through SoundExchange, because they are interactive (the listener chooses the track). Those services pay sound-recording royalties directly to your distributor or label instead. So SoundExchange is an additional royalty layer, not a replacement for your distribution income — which is exactly why so much of it goes unclaimed.
3. The 45/50/5 Split Explained
Once SoundExchange collects the money, U.S. law dictates how it is divided. This is the famous 45/50/5 split:
- 45% to the featured artist — the main performer or band named on the recording. This share is paid directly to the featured artist, even if that artist is signed to a label. The label cannot intercept it. That direct-payment rule is one of the most valuable protections in the entire royalty system.
- 50% to the rights owner — the owner of the sound recording (the master). For a major-label release that is usually the label; for an independent release it is often the artist themselves.
- 5% to non-featured performers — session musicians and backing vocalists. This share is administered through the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund rather than paid out via individual SoundExchange registration.
The practical takeaway for independent artists is significant: if you own your own masters, you collect both the 45% featured-artist share and the 50% rights-owner share — roughly 95% of the SoundExchange royalties your recordings generate. To collect both halves, you generally need to register in both capacities (see section 6).
4. Who Should Register With SoundExchange?
Two groups should register, and many people belong to both:
- Featured recording artists — if your name or your band is the headline performer on a recording, you are owed the 45% featured-artist share. Register as a Featured Artist.
- Sound recording rights owners — if you own the master (most independent artists, plus labels), you are owed the 50% rights-owner share. Register as a Sound Recording Copyright Owner (SRCO).
If you are an independent artist who records and releases your own music, you are almost certainly both, and you should register in both capacities so you capture the full 95%. The same logic applies to small labels that also manage their artists’ shares — though featured-artist money always belongs to the artist directly.
One honest caveat: SoundExchange royalties scale with non-interactive plays. If your music gets meaningful spins on Pandora, SiriusXM, or internet radio, this can be real money. If almost all of your listens are on-demand Spotify streams, the SoundExchange pool may be modest. Either way, registration is free, so there is little reason not to claim what exists.
5. SoundExchange vs. a PRO vs. The MLC
This is where most artists get lost, so here is the clean version. There are two separate copyrights in any piece of recorded music: the sound recording (the master) and the musical composition (the song — melody and lyrics). Different organizations collect different royalties for each, and they do not overlap.
- SoundExchange — collects sound recording digital performance royalties from non-interactive services (Pandora, SiriusXM, internet radio). Pays the performers and master owner. This is the only one of the three that pays the recording side.
- A PRO (ASCAP, BMI, SESAC, GMR) — collects composition performance royalties for songwriters and publishers. This is the money owed when the underlying song is performed publicly — on terrestrial radio, on TV, in venues, and in digital performance contexts. If you wrote the song, you need a PRO.
- The MLC (Mechanical Licensing Collective) — collects mechanical royalties for the composition from interactive streaming services (like Spotify and Apple Music) in the U.S. This is the songwriter/publisher mechanical owed for on-demand streams and downloads.
The simplest mental model: SoundExchange = your recording on digital radio. A PRO = your song performed publicly. The MLC = your song’s mechanical on on-demand streaming. A self-releasing songwriter-artist who owns their masters realistically needs all three: SoundExchange for the recording, a PRO for the composition performance, and The MLC for the composition mechanical. Each one ignores money the others collect.
6. How to Register With SoundExchange (Step by Step)
Registration is free and done online. Here is the general flow for how to register with SoundExchange in 2026:
- Create an account at soundexchange.com. Choose your role — Featured Artist, Sound Recording Copyright Owner, or both. If you own your masters, register as both.
- Submit your catalog. Provide your recordings with song titles, release dates, and — critically — ISRCs (International Standard Recording Codes). SoundExchange uses ISRCs to match your recordings to the play data reported by Pandora, SiriusXM, and other services. Missing or wrong ISRCs are the most common reason royalties fail to match.
- Complete and digitally sign your W-9 (or the appropriate tax form) inside the portal. Until your tax form is on file and verified, SoundExchange legally cannot pay you.
- Link your bank account for direct deposit. This typically lowers your payment threshold (so you get paid on smaller balances) compared with waiting for a paper check.
- Keep your catalog current. Add new releases and ISRCs as you put them out so future plays match correctly.
The two steps people skip are the tax form and the ISRCs. Both are blockers: no verified tax form means no payment, and no ISRC means the play data may never find your account. Get those right and the rest runs largely on autopilot.
7. Unclaimed Royalties: Check Before They Disappear
SoundExchange holds a database of unclaimed royalties — money already collected from digital services but not yet matched to a registered artist or rights owner. If you have released music that has been played on non-interactive platforms but you never registered, there may be a balance waiting for you.
You can use the search tool on soundexchange.com to check whether royalties have been collected for your recordings before you even finish registering. Do this early, because there is a clock: under the rules governing the program, royalties that remain unclaimed for an extended period (commonly cited as around three years) can eventually be released from the unclaimed pool. In other words, registering sooner protects older money that might otherwise time out.
If you find your name or recordings in the unclaimed database, completing registration — with correct ISRCs and a verified tax form — is what lets SoundExchange route that money to you.
Frequently Asked Questions
What is SoundExchange in simple terms?
SoundExchange is the U.S. organization that collects and pays out digital performance royalties for sound recordings played on non-interactive digital services like Pandora, SiriusXM, and internet radio. It pays the featured artist, the master owner, and (via a fund) non-featured performers.
Does SoundExchange pay royalties for Spotify and Apple Music?
No. Spotify and Apple Music on-demand streams are interactive and do not pay through SoundExchange. Those sound-recording royalties reach you through your distributor or label. SoundExchange covers the non-interactive, radio-style side of digital.
How are SoundExchange royalties split?
Under U.S. law the split is 45% to the featured artist (paid directly), 50% to the sound-recording rights owner, and 5% to non-featured performers via the AFM & SAG-AFTRA fund. An independent artist who owns their masters can collect about 95% by registering as both featured artist and rights owner.
Do I still need a PRO and The MLC if I’m with SoundExchange?
Yes, if you also write your songs. SoundExchange pays only the sound-recording side. A PRO (ASCAP, BMI, SESAC, GMR) collects composition performance royalties, and The MLC collects composition mechanical royalties from interactive streaming. They do not overlap, so a self-releasing songwriter-artist typically needs all three.
How do I register with SoundExchange?
Create a free account at soundexchange.com, choose Featured Artist and/or Sound Recording Copyright Owner, submit your catalog with ISRCs, sign your tax form (W-9) in the portal, and link a bank account for direct deposit.
How do I find unclaimed SoundExchange royalties?
Use the unclaimed-royalties search tool at soundexchange.com to see whether money has been collected for your recordings. Register and complete your account — with correct ISRCs and a verified tax form — to claim it, and do it sooner rather than later, since unclaimed balances can eventually be released after an extended period.
Financial/legal disclaimer: This article is general information about how SoundExchange and digital performance royalties work, not financial, tax, or legal advice. Royalty rules, splits, thresholds, and timelines can change, and your situation may differ — consult a qualified music attorney, accountant, or tax professional before making decisions. Affiliate & AI-assistance disclosure: some links in this article may be affiliate or referral links, and this article was produced with AI assistance and human editing.
Written by Mihai Iancu for Get More Streams.
