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Tuesday, August 11, 2015
SoundExchange Becomes A Major Source Of Online Revenue
This is quite an achievement since it took SoundExchange 10 years to reach the first billion in payouts but two years for the second. In fact, last year the royalties paid by the organization accounted for about 16% of the American music industry's total income.
So where does the money come from? SoundExchange collects money only from digital radio, with the bulk of it coming from SiriusXM and Pandora. As a result, the organization has now become one of the major PROs along with ASCAP, BMI, and SESAC.
After deducting about 4.6% to cover its operating expenses, the organization sends 50% to the copyright holder (usually the record label), 45% to the featured artist and performers, and 5% to a special fund for session musicians and backup singers.
What's significant here is that artists actually get paid for radio airplay, unlike terrestrial radio where only the publisher and songwriter get paid.
If you're an indie musician and you're getting airplay on digital radio, there may be some money waiting for you in escrow. Sign up at SoundExchange today.