Sienna Rhodes
SoundExchange is a non-profit collective rights management organization that collects and distributes digital performance royalties on behalf of recording artists, master rights owners, and independent artists who own their masters. It offers music licensing and royalty collection services and pays royalties directly to music creators, with monthly payments at a low administrative rate of 4-6%. It is important to note that SoundExchange does not collect royalties for songwriters or publishers, nor does it pay third parties. Registration with SoundExchange is free, and members can benefit from international royalty collection.
| Characteristics | Values |
|---|---|
| Cost of SoundExchange registration | Free |
| Who does SoundExchange pay royalties to? | Recording artists, master rights owners, and independent artists who own their masters |
| Who does SoundExchange not pay royalties to? | Songwriters, publishers, or third parties |
| What does SoundExchange collect royalties for? | All sound recordings played on non-interactive digital radio, including recordings and soundtracks made by actors, comedians, and spoken word artists |
| What does SoundExchange not collect royalties for? | Videos or other visual media (including YouTube and VEVO) |
| How does SoundExchange pay royalties? | Monthly payments at one of the lowest administrative rates in the music industry (4-6%) and most royalties are paid out within 45 days of receipt |
| How does SoundExchange receive payments? | Check, money order, direct bank wire (or ACH payment) |
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What You'll Learn
- SoundExchange membership is free
- Artists can receive royalty payments directly to their bank accounts
- SoundExchange collects royalties for all sound recordings on non-interactive digital radio
- SoundExchange does not collect royalties for videos or other visual media
- SoundExchange is a non-profit organisation
SoundExchange membership is free
SoundExchange is a non-profit organisation established by the Copyright Royalty Board. It collects and distributes digital performance royalties on behalf of recording artists, master rights owners (like record labels), and independent artists who own their masters. SoundExchange is free to join and does not charge a membership fee. However, they do take a small percentage (between 4-6%) for administrative fees, which is standard practice in the music industry.
SoundExchange Direct is a free service available to all creators via the website or app. After registering, creators can search and claim their recordings, track their catalog, and review their digital royalty payments. ISRC Search is another free and open tool that allows users to search recording data known to SoundExchange. The Music Data Exchange is a platform that facilitates the exchange of sound recording and publishing data and ownership claims between record labels and music publishers.
SoundExchange assists thousands of digital service providers in fulfilling their legal requirement to pay performance royalties for the streaming musical content they play. Through its Licensee Direct service, it enables DSPs to calculate, certify, and submit digital performance royalties. SoundExchange also offers music licensing and royalty collection services in Canada through CMRRA.
In the world of satellite radio, SoundExchange monitors plays and allocates money to recording artists accordingly. It is important to note that SoundExchange does not collect royalties for videos or other visual media (including YouTube and VEVO).
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Artists can receive royalty payments directly to their bank accounts
SoundExchange is a non-profit collective rights management organisation that collects and distributes digital performance royalties for sound recordings on behalf of recording artists, master rights owners, and independent artists who own their masters. It is designated by the US Congress and collects revenues for performers on sound recordings rather than songwriters.
Registering with SoundExchange is free and easy, and members can benefit from international royalty collection. This means that when recordings are played globally, SoundExchange can collect those royalties for its members. SoundExchange currently has 46 collection agreements in 35 countries.
SoundExchange collects royalties for all sound recordings played on non-interactive digital radio, including recordings and soundtracks made by actors, comedians, and spoken word artists, in addition to musicians. This includes satellite radio services like SiriusXM. SoundExchange does not collect royalties for videos or other visual media, including YouTube and Vevo.
SoundExchange pays royalties directly to music creators, offering monthly payments at low administrative rates (4-6%) and paying out most royalties within 45 days of receipt. Artists can opt for monthly direct deposits to receive payments directly to their bank accounts.
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SoundExchange collects royalties for all sound recordings on non-interactive digital radio
SoundExchange is a non-profit organisation established by the Copyright Royalty Board. It collects and distributes digital performance royalties on behalf of recording artists, master rights owners (like record labels), and independent artists who own their masters. It collects royalties for all sound recordings played on non-interactive digital radio, including recordings and soundtracks made by actors, comedians, and spoken word artists, in addition to musicians.
SoundExchange does not collect royalties for videos or other visual media (including YouTube and VEVO). It also does not collect or distribute royalties for songwriters or publishers. The royalties that SoundExchange collects and distributes are for the featured artist and the sound recording copyright owner. ASCAP, BMI, and SESAC collect and distribute royalties for songwriters, composers, and publishers.
SoundExchange offers music publishers services through its subsidiary SX Works and offers music licensing and royalty collection services in Canada through CMRRA. It is their strict policy not to pay third parties. A third party is considered anyone who is not the featured performer (artist) or the owner of the Sound Recording Copyright. SoundExchange has a standard practice to only pay performer money to the following: the actual featured performers on the track; companies wholly owned by the performers (i.e., “holding” or “furnishing” companies); legitimate heirs, trusts, and estates of deceased featured performers; or performer collecting societies with whom they have an agreement.
SoundExchange pays royalties directly to music creators, offering monthly payments at one of the lowest administrative rates in the music industry (between 4-6%) and paying out most royalties within 45 days of receipt. Artists can opt into monthly direct deposits to receive payments directly into their bank accounts.
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SoundExchange does not collect royalties for videos or other visual media
SoundExchange is a non-profit organisation established by the Copyright Royalty Board. It collects and distributes digital performance royalties on behalf of recording artists, master rights owners (like record labels), and independent artists who own their masters. The organisation collects royalties for all sound recordings played on non-interactive digital radio, including recordings and soundtracks made by actors, comedians, and spoken word artists, in addition to musicians.
However, it is important to note that SoundExchange does not collect royalties for videos or other visual media, including YouTube and VEVO. This means that any videos or visual content, even if they contain copyrighted music or sound recordings, are not subject to royalty collection by SoundExchange. The focus of SoundExchange's royalty collection is specifically on non-interactive digital radio and streaming services.
SoundExchange has a strict policy regarding payment distribution. They only pay performers' money to the actual featured performers on the track, companies wholly owned by the performers, legitimate heirs, trusts, and estates of deceased featured performers, or performer collecting societies with whom they have an agreement. Registering with SoundExchange is free and easy, and it offers one of the lowest administrative rates in the music industry, between 4-6%.
SoundExchange also has international reach, with more than 50 collection agreements in 35 countries worldwide. This allows them to collect and distribute royalties globally and pay artists in their local currency. SoundExchange's role in royalty collection and distribution helps ensure that artists and rights owners receive compensation for the use of their creative work on digital radio and streaming platforms.
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SoundExchange is a non-profit organisation
SoundExchange also offers music licensing and royalty collection services in Canada through CMRRA. They have a strict policy of only paying performers who are the featured artists on a track, wholly-owned companies, legitimate heirs, trusts, estates, or performer collecting societies. They also pay out to creative participants, such as producers, mixers, or engineers, when a direct registrant submits a SoundExchange Letter of Direction. SoundExchange does not collect royalties for videos or visual media, like YouTube or Vevo.
The organisation has one of the lowest administrative fees of any major collective management organisation in the world, and it is free to register with them. They offer monthly direct deposits to artists, ensuring they receive their money promptly and efficiently. SoundExchange also introduced an "Overlaps & Disputes" feature for rights holders, although this has triggered concerns about "Royalty Raiding" by major labels.
SoundExchange has been involved in legal proceedings to ensure fair royalty rates, such as suing Muzak in 2015 for underpayments of royalties to artists and rights holders. They have also proposed rate increases to the Copyright Royalty Board, which have been criticised as unsustainable for internet radio.
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Frequently asked questions
No, registering with SoundExchange is free and easy to do via their online registration.
Yes, SoundExchange takes a 4.6% administrative fee from the total funds collected.
SoundExchange pays royalties directly to music creators, including the featured performers on the track, companies wholly owned by the performers, legitimate heirs, trusts, and estates of deceased featured performers, and performer collecting societies.
SoundExchange collects and distributes digital performance royalties on behalf of recording artists, master rights owners, and independent artists who own their masters. It does not collect royalties for songwriters or music publishers.
