New artists hear ‘register with SoundExchange’ and ‘join a PRO’ and assume it’s the same thing twice. It’s not — they’re two completely different paychecks for two completely different rights. Your PRO (ASCAP, BMI, or SESAC) collects performance royalties for the song itself — the composition — and pays the songwriter and publisher. That’s money for the writing, and it comes from radio, TV, venues, and streaming services playing the song.
SoundExchange collects a different royalty: the digital performance royalty for the sound recording. When Pandora, SiriusXM, or webcasters stream the actual recording, the law says the recording owner (usually the label, or you if you’re independent) and the featured performers get paid. SoundExchange splits it by statute: 50 percent to the rights owner, 45 percent to featured artists, 5 percent to background musicians and vocalists through their funds.
Notice what SoundExchange does not cover: on-demand streaming like Spotify and Apple Music. Those pay the recording owner directly through your distributor — no SoundExchange involved. And your PRO doesn’t touch recording money at all. So one song can generate three income streams — PRO money for the writing, distributor money for on-demand streams, SoundExchange money for non-interactive plays — each needing its own registration.
The action list is simple but non-negotiable. Join a PRO as a writer. Register as a rights owner and featured performer with SoundExchange — it’s free, and unclaimed money there is real. Make sure your distributor is actually delivering your recordings to Pandora and SiriusXM, because SoundExchange can only pay on plays it sees. Two registrations, two paychecks, zero overlap — miss one and you’re donating money.
About the Author – Ruben Burgos: Ruben Burgos brings over 25 years of music expertise and more than 15 years of model guidance to the table. He is the indie major pinnacle to retaining credits for musicians and helping them navigate this wicked industry without the fuckery.