If you’re an artist, then you need to know about SoundExchange. This little-known organization is responsible for collecting and distributing royalties for artists whenever their music is played on digital radio stations. Unfortunately, SoundExchange isn’t always fair to musicians, and they can often leave money on the table. In this article, we’ll discuss what SoundExchange does and how it can help you as an artist. We’ll also cover some of the complaints that artists have against SoundExchange and explain why there’s not much you can do about it.
What does SoundExchange do?
SoundExchange is a non-profit collective rights management organization, meaning that they administer the copyrights of others. In the case of musicians, this means that they collect royalties whenever your music is played in “noninteractive” digital recordings. They then distribute those royalties to the artists based on several factors, including how often the song was played and how many total spins it received.
SoundExchange is technically a Performing Rights Organization (PRO), but is different from the others like BMI and ASCAP. SoundExchange focuses specifically on a certain time of digital distribution rather than all distribution. SoundExchange also is more focused on representing the artists and labels while other PROs tend to represent songwriters and publishers. SoundExchange is also the only organization in American that collects royalties for “noninteractive” digital recordings. So far, SoundExchange has distributed more than $9 billion in royalties through their platform.
What are “noninteractive” digital recordings?
These are recordings that are played on digital radio stations, including online streaming services like Pandora and Spotify. If you have your music played on one of these platforms, then SoundExchange is responsible for collecting the royalties due to you. The designation of “noninteractive” applies when you are not choosing the songs directly. So Apple Music is “interactive” because you choose a specific song to play. When you listen to a curated playlist where you are not choosing what songs are played, then that falls under the “noninteractive” designation.
What are the benefits of SoundExchange?
The main benefit of SoundExchange is that they collect royalties for you whenever your music is played on digital radio stations. This can be a significant source of income for many artists, especially if your songs are played frequently. In addition, SoundExchange is required by law to distribute these royalties fairly and accurately. This means that you can trust that you’re getting the money you’re owed and that it’s being distributed in a way that makes sense.
SoundExchange has a community of over 500,000 creators and still growing. As a member, you can also choose to let SoundExchange collect international royalties through an arrangement called neighboring rights. SoundExchange has agreements with other organizations in countries around the world covering 80% of the neighboring rights markets outside of the United States. Want to become a member? You can register for free here.
Do I need SoundExchange if I am a member of another PRO like BMI?
Yes techincally SoundExchange is a PRO, but it is different from the other PROs. While the others all have their pros and cons, they still serve generally the same way. You could say that SoundExchange is the new kid on the block. SoundExchange is also again focused on specific digital distribution, whereas BMI for example is focused on a wider range of royalty sources. If you are a member of another PRO, then you might not need to register with SoundExchange. However, it is always good to have as many streams of income as possible and registering with SoundExchange is free, so there is no harm in doing so.
But if you just register with SoundExchange, then you will be missing out on many other streams of income so it is important to register with one of the other three PROs as well: ASCAP, BMI, or SESAC. The other three PROs collect and distribute royalties for songwriters, composers, and publishers. SoundExchange collects and distributes royalties for the featured artists and sound recording copyright owners when played in “noninteractive” digital medium. So the only way to get that specific royalty income is through SoundExchange, but the rest of it will come from one of the other PROs.
Are there any risks or drawbacks to SoundExchange?
The main risk is that you might not get paid if you’re not a member of SoundExchange. If your music is played on digital radio and you’re not a member, then SoundExchange is not required to pay you. In addition, there have been some complaints about the way that SoundExchange handles royalties. Some artists have complained that they have not received the royalties they are owed, or that the payments are delayed. However, these complaints seem to be in the minority and overall SoundExchange seems to be doing a good job of collecting and distributing royalties.
While it might seem bad that you are not getting the royalties you are “owed,” you won’t get them at all if you do not sign up with SoundExchange. So really SoundExchange is going to be the lesser of two evils.
Benefits of SoundExchange and Neighboring Rights
SoundExchange offers numerous benefits to artists and creators. By registering with SoundExchange, you can ensure that you receive royalties whenever your music is played on digital radio stations. This can be a valuable source of income, especially if your songs receive frequent airplay. SoundExchange is committed to distributing royalties fairly and accurately, so you can trust that you’re receiving the money you deserve.
One significant advantage of SoundExchange membership is the opportunity to participate in neighboring rights. Neighboring rights refer to the royalties earned when your music is played internationally. SoundExchange has established agreements with organizations in various countries, covering 80% of the neighboring rights markets outside the United States. As a member, you can authorize SoundExchange to collect these international royalties on your behalf, expanding your revenue streams globally.
With a thriving community of over 500,000 creators, SoundExchange offers a supportive network for artists. By joining this community, you can connect with fellow musicians, share experiences, and gain valuable insights. Additionally, registration with SoundExchange is free, making it an accessible and advantageous platform for artists seeking to maximize their earnings.
Final Thoughts
In conclusion, SoundExchange plays a crucial role in collecting and distributing royalties for artists, ensuring that they receive fair compensation when their music is played on digital radio stations. Despite occasional complaints, SoundExchange has proven its effectiveness in the industry, distributing over $9 billion in royalties to date. With its focus on representing artists and labels, SoundExchange offers a distinct service compared to other performing rights organizations. By registering with SoundExchange, artists can unlock the potential for significant income streams and tap into the global market through neighboring rights. Don’t miss out on the royalties you deserve – sign up with SoundExchange today and take control of your digital music earnings.