SoundExchange - What do they collect? Who do they pay? Do they owe me money?
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SoundExchange is a US performing rights organization that represents master recordings. They collect digital performance royalties on behalf of recordings of artists and master rights owners. They do not represent songwriters or music publishers.
It’s also important to note that the digital performance royalties they collect are for non-interactive music streaming. That’s when you hear your song on a digital radio station or a digital streaming service that does not have an interactive function. You can pick the channel or station you want to listen to, but you do not have control over what that station plays.
For non-interactive digital streaming services, there is a specific statutory rate that must be paid. SoundExchange collects on this statutory license and pays it out as royalties to sound recording owners and to featured artists. To get paid properly, sound recording owners (like record labels, or indie artists who own their own masters) must make sure they and all of their works are registered with SoundExchange and that their metadata is up to date. This is the same for performing music artists. If your data is not correct or incomplete at SoundExchange, then you could be missing out on the royalties you are due.
Here’s an example of how SoundExchange works, let’s say you start are a new artist who hasn’t yet signed with a record label. You go into the studio and record your first album - and YOU are now the owner of those sound recordings. To get your music out to the world, you sign up with Distrokid, to distribute your music to all the digital service providers including some non-interactive streaming services. These non-interactive streaming services are paying a royalty to SoundExchange when they play your music. To get those royalties, you need to register with SoundExchange as the recording owner and as the artist. If you’ve signed with a record label, then you still need to make sure you are signed up with SoundExchange as an artist because the record label is not responsible for your royalties due from SoundExchange. SoundExchange pays the artists directly.
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