Everything You Need to Know About Music Royalties

Digital performance royalties are fees that non-interactive digital streaming services (such as Pandora, SiriusXM, and webcasts) must pay to performing artists each time a sound recording is streamed on their services. In the US, digital performance royalties are collected by SoundExchange, a non-profit organization.

SoundExchange distributes digital performance royalties to artists and rights owners as follows:

45% to featured artists
5% to non-featured artists
50% to the rights owner of the master recording

To earn digital performance royalties, artists must register with SoundExchange. This is a free and easy process that can be done online. Once registered, SoundExchange will track your music streams and collect royalties on your behalf.

Here are some examples of how digital performance royalties are generated:

When a listener streams a song on Pandora, Pandora pays a royalty to SoundExchange.
When a webcaster plays a song on their stream, they pay a royalty to SoundExchange.
When a satellite radio service like SiriusXM plays a song, they pay a royalty to SoundExchange.

Digital performance royalties are an important source of income for artists, especially in the age of streaming. In 2022, SoundExchange distributed over $1 billion in digital performance royalties to artists and rights owners.

Here are some tips for maximizing your digital performance royalties:

• Register with SoundExchange.
• Make sure your music is available on as many streaming services as possible.
• Promote your music on social media and other channels to encourage people to listen.
• Collaborate with other artists to cross-promote each other's music.
• Track your streams and royalties using SoundExchange's tools and analytics.