SoundExchange and Digital Performance Royalties
Free money many artists miss: How to claim digital royalties from streaming, radio, and satellite platforms.
What is SoundExchange?
SoundExchange is a nonprofit performance rights organization that collects and distributes digital performance royalties on behalf of artists and labels. Unlike traditional publishing royalties, digital performance royalties are paid to the sound recording owner (usually the artist or label) when a song is played on digital platforms like Spotify, Apple Music, SiriusXM, and internet radio stations.
Many independent artists don't realize they're entitled to these royalties, leaving thousands of dollars unclaimed each year.
How Digital Royalties Work
When a song streams on a digital platform, two separate royalty payments are generated:
Mechanical royalties go to songwriters and publishers (your composition). Performance royalties go to the sound recording owner and featured artists (your recording). SoundExchange handles the latter through three main categories:
Noninteractive streams (Spotify, Apple Music, Tidal) pay performance royalties. Interactive platforms are required to negotiate with rights holders directly, though SoundExchange also collects here.
Internet radio (Pandora, iHeartRadio) and satellite radio (SiriusXM) generate consistent performance royalties that flow through SoundExchange.
Background music services (gyms, restaurants, elevators) using digital platforms also trigger royalty payments.
Registering and Getting Paid
Registration is free. Visit soundexchange.com, create an account, and register yourself as a performer and/or rights holder. You'll need:
- Your artist/stage name
- Song details (title, ISRC code if available, release date)
- Banking information for direct deposit
SoundExchange distributes royalties quarterly. Payouts typically start after 6–9 months as historical streaming data is matched and verified.
Realistic Earnings
Payouts depend on your streaming volume and platform mix. A song with 100,000 Spotify streams might generate $50–150 from SoundExchange, depending on listener location and subscription status. Internet radio and satellite radio can add another 20–30% on top.
While individual payments are modest, they accumulate over time. Artists with millions of streams across multiple platforms see meaningful quarterly checks.
Key Takeaway
Registering with SoundExchange costs nothing and takes 15 minutes. If you've released music on streaming platforms, you likely have unclaimed royalties waiting. It's one of the easiest passive income streams for musicians.