If you own your master recordings and your music plays on SiriusXM, Pandora, or internet radio, you are almost certainly owed money you have not collected — and the only way to get it is to register with SoundExchange. SoundExchange is the single U.S. organization that collects digital performance royalties for the sound recording (the master), and it pays those royalties directly to featured artists and rights owners even when no label is involved. Registration is free, takes about 15 minutes, and unlocks a revenue stream most independent artists never touch. The catch: SoundExchange only pays people who have signed up, and unclaimed royalties expire after three years — after which your money gets redistributed to artists who did register. This guide walks through exactly who qualifies, how to register as both a Featured Artist and a Sound Recording Copyright Owner, what you can earn under the new 2026–2030 rates, and how to claw back money that has been sitting unclaimed. If you would rather not comb through statements by hand, RoyaltyCoPilot.ai can scan your catalog against SoundExchange's registered-repertoire data to flag exactly which recordings are generating royalties you have not claimed.
Last Updated: July 2026
What is SoundExchange and what royalty does it actually pay?
SoundExchange is a nonprofit collective management organization designated by the U.S. Copyright Royalty Board to collect and distribute one specific royalty: the digital performance royalty for sound recordings. When a non-interactive digital service plays your track, U.S. law (the Digital Performance Right in Sound Recordings Act of 1995 and the Digital Millennium Copyright Act of 1998) requires that service to pay a statutory royalty for the recording — separate from the songwriting royalty.
This is the money almost every indie artist confuses. Your PRO (ASCAP, BMI, SESAC, GMR) pays you for the composition — the underlying song. SoundExchange pays you for the master recording — the specific audio file. They are two different copyrights, two different checks, and two different registrations. If you only registered with a PRO, you are collecting half the story.
SoundExchange has distributed more than $13 billion to artists and rights owners since it began operating in 2003, a milestone it announced in March 2026 (SoundExchange). In 2025 alone it paid out $991.5 million. That volume exists because the royalty is statutory and non-negotiable — the services must pay whether or not you have claimed your share.
Which platforms trigger a SoundExchange royalty?
SoundExchange only covers non-interactive digital audio — services where the listener cannot choose the exact song on demand. That distinction matters, because on-demand services (Spotify, Apple Music) pay the master royalty through your distributor instead.
Services that generate SoundExchange royalties include:
- SiriusXM satellite radio
- Pandora (its radio/non-interactive tier)
- iHeartRadio internet radio stations
- Internet simulcasts of AM/FM broadcast stations
- Music-only cable and satellite TV audio channels (e.g., Music Choice, Stingray)
- Other licensed webcasters and non-interactive streaming services
If your song gets added to a Pandora station or spun on a SiriusXM channel, a royalty is accruing in your name right now. Whether you ever see it depends entirely on registration.
Who gets paid, and how is a SoundExchange royalty split?
Every SoundExchange royalty is split three ways by federal statute, and the percentages never change:
| Recipient | Share | Who this is |
|---|---|---|
| Sound Recording Copyright Owner (SRCO) | 50% | Whoever owns the master — you, if you're independent; the label, if signed |
| Featured Artist | 45% | The main performer(s) credited on the track |
| Non-Featured Performers | 5% | Session musicians and background vocalists, paid via the AFM & SAG-AFTRA Fund |
The 45% featured-artist share is paid directly to the artist by law, even if a label owns the master (CelebrityAccess). That is unusual and valuable: it is one of the only royalties a signed artist receives without it flowing through the label first.
For a fully independent artist who owns their own masters, the math is simple and generous: you register as both the SRCO and the Featured Artist and collect 95% of the total royalty (50% + 45%). The remaining 5% goes to the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund for non-featured performers (International Musician). This is why registering in both roles is non-negotiable for DIY artists — pick only one and you leave nearly half your money on the table.
How do you register with SoundExchange in 2026? (Step by step)
Registration is free and takes roughly 15 minutes for a small catalog. Do it at register.soundexchange.com. Here is the process in order:
- Choose your role(s). Register as a Featured Artist if you perform on the recordings, and as a Sound Recording Copyright Owner if you own the masters. Independent artists who own their work should register as both to capture the full 95%.
- Create your account with your legal name, stage/performer name, mailing address, and contact email.
- Provide tax and payment details. You will need your SSN or EIN (for a business entity) and bank account information for direct deposit. SoundExchange withholds payment until valid tax documentation (W-9 for U.S. residents) is on file.
- Add your recordings. For each track, supply the recording title, album/release title, ISRC, release date, label name, and all featured artist credits. Accurate ISRCs are the single biggest factor in getting matched to plays.
- Submit and wait for verification. SoundExchange reviews your registration and repertoire; verification typically takes a few weeks to a few months depending on volume.
- Keep your catalog current. Every time you release new music, log back in and register the new ISRCs. Unregistered recordings do not get paid, no matter how many spins they earn.
The recurring failure point is step 4. Missing, duplicate, or mismatched ISRCs are the number-one reason royalties go unmatched and slide toward the unclaimed pile. This is exactly the kind of metadata gap RoyaltyCoPilot.ai is built to catch before it costs you.
What will you earn? SoundExchange rates for 2026–2030
SoundExchange royalties are paid per performance — one play of one recording for one listener. The Copyright Royalty Board's Web VI proceeding set the rates for January 1, 2026 through December 31, 2030 (Federal Register).
For commercial webcasters in 2026:
- Non-subscription streams: $0.0025 per performance
- Subscription streams: $0.0032 per performance
For broadcasters simulcasting AM/FM online, the non-subscription rate rises from $0.0025 to $0.0028 in 2026, then increases by $0.0001 each year to reach $0.0032 by 2030 (Broadcast Law Blog). The annual minimum fee a service pays climbs to $1,100 in 2026.
A fraction of a cent sounds trivial until you multiply it. A track that racks up 500,000 non-subscription plays across Pandora and iHeartRadio in a year generates roughly $1,250 in gross SoundExchange royalties — of which an independent owner-artist keeps about $1,187 (95%). For a catalog of even a dozen actively-played recordings, the annual total is real money that arrives on top of your Spotify and PRO checks.
What happens to unclaimed SoundExchange royalties?
Here is the part that costs independent artists the most: unclaimed royalties expire after three years. SoundExchange holds royalties for recordings it cannot match to a registered rights holder, but it is authorized by regulation to release those funds after roughly three years (SoundExchange). Once released, the money is redistributed to registered rights holders on a market-share basis — meaning your unclaimed royalties eventually get paid to other, larger, registered artists.
The takeaway is blunt: money accruing in your name has a shelf life. If you released music three or four years ago, some of your earliest royalties may already be gone. Registering today locks in everything from this point forward, and SoundExchange can pay retroactively on matched plays going back within their claiming window — but only if you register and your metadata matches. A catalog audit through RoyaltyCoPilot.ai is designed to surface these unmatched recordings while there is still time to claim them.
SoundExchange vs. the MLC vs. your PRO: who pays what?
Three different organizations pay three different royalties, and confusing them is how income disappears. Here is the clean breakdown:
| Organization | Copyright it pays | Trigger | Who registers |
|---|---|---|---|
| SoundExchange | Sound recording (master) | Non-interactive digital: SiriusXM, Pandora, internet radio | Artists & master owners |
| The MLC | Musical composition (mechanical) | Interactive streaming & downloads: Spotify, Apple Music | Songwriters & publishers |
| PRO (ASCAP/BMI/SESAC/GMR) | Musical composition (performance) | Public performance: radio, venues, TV, streaming | Songwriters & publishers |
An independent artist who writes, performs, and owns their recordings needs all three. SoundExchange for the master's digital performance, the MLC for mechanicals, and a PRO for the composition's public performance. Skip any one and you are leaving that entire royalty stream uncollected. We cover the mechanical side in depth in our companion guides, but SoundExchange is the one most often forgotten because no distributor collects it for you.
Does your distributor already collect SoundExchange for you?
Almost never — and this is the trap. Distributors like DistroKid, TuneCore, and CD Baby collect your interactive streaming royalties (Spotify, Apple Music) and pass them along. But SoundExchange royalties for non-interactive plays are not collected by your distributor by default. SoundExchange pays the featured artist and the registered master owner directly.
Some services and administrators offer to register with SoundExchange on your behalf and take a cut, but you can register yourself for free and keep 100% of your share. If a third party ever collects on your behalf, they do it through a Letter of Direction — a document instructing SoundExchange to route your share to them. Before signing anything, understand that direct registration is free and puts you in control. When in doubt, register yourself and let a tool like RoyaltyCoPilot.ai monitor whether your recordings are matched and paying.
SoundExchange registration checklist for independent artists
Run through this before you consider yourself fully collected:
- Registered as both Featured Artist and Sound Recording Copyright Owner (if you own your masters).
- Every released recording added with a correct ISRC.
- W-9 (or W-8 for non-U.S.) and bank details on file so payments aren't held.
- Featured-artist credits accurate on every track to avoid disputes.
- New releases registered the moment they drop — not months later.
- Catalog reviewed for unclaimed/unmatched recordings before the three-year clock runs out.
- International royalties considered — SoundExchange has reciprocal deals to collect some foreign neighboring rights for registered members.
Frequently asked questions about SoundExchange
Is SoundExchange registration really free? Yes. Registration at register.soundexchange.com costs nothing, and there are no membership dues. Any service charging you simply to register is charging for something you can do yourself in about 15 minutes.
Do I need a label or distributor to collect SoundExchange royalties? No. SoundExchange pays independent artists and self-owned masters directly. You do not need a label, and your distributor generally does not collect these royalties for you.
What's the difference between SoundExchange and the MLC? SoundExchange pays the sound recording (master) royalty for non-interactive digital plays like Pandora and SiriusXM. The MLC pays the mechanical royalty for the underlying composition on interactive services like Spotify. Different copyright, different check.
How much does SoundExchange pay per stream in 2026? For 2026, commercial webcasters pay roughly $0.0025 per non-subscription performance and $0.0032 per subscription performance under the Copyright Royalty Board's Web VI rates.
How long does it take to get my first SoundExchange payment? Verification of your registration can take a few weeks to a few months. After that, SoundExchange distributes on a regular schedule once your accrued royalties clear its minimum payment threshold.
Can I claim SoundExchange royalties from years ago? Sometimes. SoundExchange can pay matched plays retroactively within its claiming window, but unclaimed royalties expire after roughly three years and are then redistributed to registered rights holders. Register as soon as possible to preserve what is still claimable.
Do session musicians and background singers get paid by SoundExchange? Yes, through the 5% non-featured performer share, which SoundExchange routes to the AFM & SAG-AFTRA Intellectual Property Rights Distribution Fund rather than paying it out directly.
What if my recordings aren't showing up as matched? Unmatched recordings are almost always a metadata problem — a missing or wrong ISRC, or a mismatched artist credit. Fixing the metadata and re-registering is the fix. A catalog audit through RoyaltyCoPilot.ai can pinpoint which recordings are unmatched so you can correct them before the royalties expire.
The bottom line
SoundExchange is the closest thing in music to free money that most independent artists never claim. The royalty is statutory, the registration is free, and an owner-artist keeps 95% of every play on SiriusXM, Pandora, and internet radio. The only thing standing between you and that check is a 15-minute registration and clean metadata — and a three-year clock quietly running on anything you leave unclaimed. Register in both roles, get your ISRCs right, keep new releases current, and audit your catalog for unmatched recordings before they expire. If you want the audit done for you, RoyaltyCoPilot.ai maps your catalog against the royalties you are actually owed so nothing slips into the unclaimed pile.
This article is educational and not legal or financial advice. Royalty rates, rules, and organizational policies change; verify current details with SoundExchange directly.