What is SoundExChange?
Definition: is a non-profit performance rights organization that collects royalties on the behalf of sound recording copyright owners (SRCOs — record labels, generally) and featured artists for non-interactive digital transmissions, including satellite and Internet radio. –Wikipedia
The purpose of SoundExChange collect, distribute, and administer sound recording copyrights and royalties owed to songwriters/publishers and recording artists through platforms such as internet radio and other streaming services.
Copyright owner of the recording (usually record label, unless you are independent); They get 50% of royalties.
Recording artists get 45% of royalties.
The 5% left over is for back-up singers and session players.
THE MAIN POINTS:
Composer sign up with a Performance Rights Organization or PROs; BMI, SESAC, or ASCAP pay him/her and his/her publisher.
Recording artist signs up with SoundExChange which collects royalties for and him/her recordings copyright publisher.
digital services/internet (satellite radio, internet radio, cable tv music channel) pay royalties----> to SoundExChange---> pays royalties to recording copyright publisher 50% and Recording Artist 45%, 5% to back-ups and session players.
How does SoundExChange know what to pay?
Webcasters and satellite radio companies are service providers. They provide SoundExChange with reports of use (how many times a song has been played) and they send in the royalties. SoundExChange uses the reports of use to determine what the record company and recording artists are owed and then Sound Exchange sends them a check.
I hope this helps understanding how SoundExChange works!
-Carlee McKee
