SoundExchange
SoundExchange is the sole U.S. government-designated non-profit that collects and distributes digital performance royalties for sound recordings from over 3,000 digital service providers to 800,000+ music creators, distributing over $1 billion annually with $13 billion+ cumulatively since 2003.
- Company typePrivate
- Founded2003
- HeadquartersWashington, United States
- Headcount101–250
- GTM typeB2B and B2C
- OfferingServices
What SoundExchange does
SoundExchange is a Washington, D.C.-based non-profit organization founded in 2003 that serves as the sole U.S. government-designated administrator of the Section 114 sound recording license, collecting and distributing digital performance royalties for sound recordings played on non-interactive digital platforms such as satellite radio, internet radio, webcasting, and cable TV music services. The organization collects statutory license fees from over 3,000 digital service providers and distributes payments to a community of more than 800,000 registered music creators and rights owners, having cumulatively distributed over $13 billion in royalties since inception. Under CEO Michael Huppe, annual royalty collections have grown from $292 million to over $1 billion.
SoundExchange's technology platform centers on proprietary AI-enabled matching systems that process billions of performances monthly across a database of 165+ million unique sound recordings, with multilingual UTF-8 matching capability. The product portfolio includes SXDirect (a free creator self-service portal and mobile app for registration, recording claims, and royalty tracking), Licensee Direct (a DSP-facing platform for calculating and submitting statutory royalty payments), ISRC Search (an open industry database of recording codes), and Music Data Exchange (a platform for label-publisher data exchange). The company operates two wholly-owned subsidiaries: SXWorks (publisher back-office services) and CMRRA (Canadian music publishing rights administration, acquired 2017).
The business model is based on administrative fees deducted from royalty distributions, with one of the lowest rates in the industry at 4-6%, and 90% of royalties distributed within 45 days of receipt. Revenue is supplemented by publisher services through SXWorks and CMRRA. International growth is driven by reciprocal agreements with over 100 collective management organizations covering 93% of the global neighboring rights market across 75+ countries, enabling cross-border royalty collections. The organization is governed by a board including representatives from major labels (UMG, WMG, Sony Music), industry associations (RIAA, A2IM), and artist unions (SAG-AFTRA, AFM), and employs approximately 180 staff across Washington D.C., Los Angeles, Miami, Nashville, and New York City.
SoundExchange firmographics
Firmographics- Name
- SoundExchange
- Legal name
- SoundExchange, Inc.
- Website
- https://soundexchange.com
- Company type
- Private
- Founded year
- 2003
- Operating status
- Operating
- Headcount range
- 101–250 employees
- Short description
- SoundExchange is the sole U.S. government-designated non-profit that collects and distributes digital performance royalties for sound recordings from over 3,000 digital service providers to 800,000+ music creators, distributing over $1 billion annually with $13 billion+ cumulatively since 2003.
- Ownership category
- akta.pro rank
SoundExchange industry classification
Industry- Product category
- Music Rights Royalty Administration
- NAICS
- Other Sound Recording Industries (512290), Sound Recording Industries (5122)
- akta.pro primary industry
- Sync Royalty Administration & Reporting (Cue Sheets, Claims, Audits) (MPAIALAL)
- akta.pro secondary industries
- Sync Clearance & Rights Management (One-Stop, Negotiation, Documentation) (MPAIALAF), Music Rights & Clearances (Sync, Score, Publishing) (MPADAAAI)
Keywords
Where SoundExchange is headquartered
LocationHeadquarters
- HQ city
- Washington
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
SoundExchange business model
Business model- GTM type
- B2B and B2C
- Offering type
- Services
- Cost components
- Technology or R&D, Personnel, Operations, Marketing or Sales, Infrastructure, Others
Revenue model
- Digital Performance Royalty Collection & Distribution: SoundExchange collects statutory license fees from 3,000+ digital service providers (satellite radio, webcasters, cable TV music services, internet radio) when they stream musical content. The organization deducts its administrative fee (one of the lowest in the industry at 4-6%) and distributes the remaining royalties to featured artists (45%), non-featured artist fund (5%), and sound recording rights owners (50%).
- International Neighboring Rights Collections: Through agreements with 100+ international CMOs in 75+ countries, SoundExchange collects performance royalties when member creators' music is played internationally. The organization passes these royalties through to artists after deducting administrative fees, representing cross-border royalty collections for creators.
- Publisher Services (SX Works, CMRRA): Through affiliates SXWorks and CMRRA (Canadian Musical Reproduction Rights Agency, acquired in 2017), SoundExchange provides back-end administrative tools for publishers including data sharing and search for unpaid digital uses of repertoire.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Freemium | Monthly | Free Creator Registration |
| Other | Monthly | Administrative Fee on Royalty Distributions |
| Subscription | Pay-as-you-go | Direct Deposit vs Check Payments |
Go-to-market motion2 records
Distribution channels4 records
Marketing channels8 records
SoundExchange product offering
Product offeringCore offering
SoundExchange is the sole U.S. government-designated organization to administer the Section 114 sound recording license. It collects statutory digital performance royalties from 3,000+ digital service providers (satellite radio, internet radio, webcasters, cable TV music services) and distributes them to 800,000+ featured artists, non-featured artists, and sound recording rights owners. It also administers international neighboring rights collections through 100+ agreements with collective management organizations covering 93% of the global market.
Product overview
SoundExchange operates as a platform-plus-services organization that administers digital performance royalties for the U.S. recording industry. The core product portfolio consists of SXDirect (a free creator portal for managing royalties, claiming recordings, and tracking payments), Licensee Direct (a DSP-facing portal for calculating and submitting royalty payments), ISRC Search (an open database of recording codes for the industry), and Music Data Exchange (a data exchange platform between labels and publishers). These products are complemented by international royalty collection services through 100+ CMO agreements covering 93% of the global neighboring rights market, the SoundExchange Mobile App for on-the-go access, and a Letters of Direction program for directing payments to collaborators. The company also operates affiliates SX Works (publisher services) and CMRRA (Canadian operations, acquired 2017). The platform is recognized for its AI-enabled matching technology processing billions of performances monthly and maintains the lowest administrative rate in the industry while distributing over $1 billion annually to 800,000+ music creators.
Differentiator
Problem solved
Functional benefit
Brands
- SoundExchange Direct (SXDirect): Free service available to all creators to manage digital performance royalties, search and claim recordings, track catalog, and review royalty payments.
- Licensee Direct (SELD)
- Music Data Exchange (MDX)
- ISRC Search
- Music Speaks: The SX PAC
Products and services
- SXDirect (SoundExchange Direct) A free web-based portal and mobile app that enables creators (artists, labels, and producers) to register, search and claim their recordings, track their catalog, and review their digital performance royalty payments.
- Licensee Direct A licensing portal that enables Digital Service Providers (DSPs) to calculate, certify, and submit statutory digital performance royalties. The service helps DSPs determine eligibility for performance licenses and fulfill their legal obligations to pay royalties for streaming musical content.
- ISRC Search A free and open tool for searching SoundExchange's global ISRC (International Standard Recording Code) recording database, which contains information on over 165 million unique sound recordings. Enables the music industry to identify sound recordings for easier reporting and royalty payments.
- Music Data Exchange (MDX) A platform designed to facilitate the exchange of sound recording and publishing data and ownership claims between record labels and music publishers. Helps improve data accuracy and streamline royalty collection across the industry.
- International Royalty Collection SoundExchange collects and distributes international performance royalties through agreements with counterpart Collective Management Organizations (CMOs) in countries across the globe. Covers 93% of the global neighboring rights market through 100+ agreements with 75+ CMOs, enabling creators to collect royalties when their music is played internationally.
- SX Works An affiliate of SoundExchange providing back-end administrative solutions and tools for publishers to share data with other industry players and search for unpaid digital uses of their repertoire.
- CMRRA Canadian Musical Reproduction Rights Agency, acquired by SoundExchange in 2017, providing music licensing and royalty collection services in Canada for publishers and rights holders.
- Letters of Direction (LOD) Program A program that allows featured artists to redirect a share of their royalties to producers, mixers, or engineers who collaborated on the recording. Artists can submit Letters of Direction to specify payment percentages for specific sound recordings.
Quantifiable outcome
- $13 billion+ in total digital performance royalties distributed to creators since 2003
- +4 more outcomes
Companies that use SoundExchange
Customer profileNamed customers3 records
Segments4 records
Ideal customer profiles4 records
SoundExchange technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature5 records
SoundExchange partnerships and signals
Strategic signalPartnerships
Twelve partnerships are on record, tiered core and minor.
- IFPIcoreSoundExchange and IFPI announced new automatic ISRC (International Standard Recording Code) assignment capability, allowing recordings to be registered immediately online with duplicate checking against existing records. The system operates on SoundExchange's existing ISRC database and registers codes for public access, improving data accuracy and reducing administrative burdens for small labels and self-publishing artists.
- CAPIF (Cámara Argentina de la Música Grabada)coreSoundExchange and Argentina's CAPIF signed a landmark reciprocal rights agreement for performers, enabling bilateral royalty collections between the U.S. and Argentina for sound recording performances.
- Music Nation (UAE)coreMusic Nation, the first UAE organization to offer a single platform combining public performance, mechanical, and neighboring rights, partnered with SoundExchange for neighboring rights administration as part of its launch in the UAE market.
- KAMP (Kenya)coreKenya's performing rights organization partnership enabling royalty collections for SoundExchange members when music is played in Kenya.
- COSCAP (Barbados)coreCaribbean neighboring rights organization partnership enabling cross-border royalty collections between the U.S. and Barbados.
- Gramo (Norway)coreNorwegian performing rights organization partnership for neighboring rights administration, part of 17 new international CMO agreements signed in 2025-2026.
- CMRRA (Canada)coreCanadian Musical Reproduction Rights Agency, acquired in 2017, provides back-end administrative solutions for publishers and is a wholly-owned SoundExchange affiliate.
- SXWorkscoreSoundExchange affiliate providing back-end administrative tools for publishers to share data with industry players and search for unpaid digital uses of their repertoire.
- BandzoogleminorMarketing partner offering SoundExchange registrants 15% discount on artist website building services.
- LANDRminorMarketing partner offering SoundExchange registrants 2 free months of AI mastering and music creation platform subscription.
- MusicPro InsuranceminorMarketing partner offering professional musicians insurance coverage for gear and equipment, owned by ASCAP and Sterling Risk.
- 70+ International CMOs (Various Countries)corePartnerships with collective management organizations across Europe, Asia, Africa, South America, Caribbean, and Oceania enabling international neighboring rights collections. Includes agreements with organizations in UK, Germany, France, Japan, Australia, Brazil, Mexico, South Africa, and many more.
Scale indicators10 records
Recent moves6 records
Expansion highlights5 records
SoundExchange competitors and assessment
Company assessmentDirect peers
- ASCAP: One of the major U.S. performing rights organizations (PROs) administering public performance royalties for musical compositions. Analogous to SoundExchange but for compositional rather than sound recording rights; both operate as statutory collective management organizations.
- BMI: The other major U.S. PRO administering public performance royalties for musical compositions. Closely comparable to SoundExchange in operating model (collective rights management, royalty collection/distribution), differing in the rights it administers.
- The MLC (Mechanical Licensing Collective): U.S. blanket mechanical licensing collective designated under the Music Modernization Act to administer mechanical royalties for musical compositions from streaming. Direct comparator as a government-designated collective rights organization operating in the U.S. music ecosystem.
- PRS for Music: UK collective management organization serving as one of SoundExchange's largest reciprocal partners for international neighboring rights collection. Operates a near-identical CMO model with high admin scale; directly comparable in function.
- GEMA: Germany's CMO for music authors and neighboring rights holders, one of Europe's largest collective rights organizations. Reciprocal partner to SoundExchange and operates the same functional role on a national scale.
- SACEM: France's primary CMO managing music rights including neighboring rights. Functions as SoundExchange's counterpart for French territory collections under their reciprocal agreement.
- APRA AMCOS: Australasian performing rights organization managing both composition and neighboring rights. Direct reciprocal partner for collections in Australia and Oceania.
- JASRAC: Japan's largest CMO handling performance and neighboring rights. Comparable collective management organization with reciprocal arrangement for cross-border collections.
Broad incumbents
- IFPI: Global trade body representing the recording industry worldwide. Strategic partner on ISRC Auto-Assignment and broader industry data initiatives; a major incumbent shaping the same rights and data infrastructure in which SoundExchange operates.
Others
- CMRRA: Canadian Musical Reproduction Rights Agency, wholly-owned SoundExchange affiliate since 2017. Operates in adjacent music rights administration (mechanical and publishing), illustrating SoundExchange's expansion beyond pure performance royalties into publisher services.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat6 records
Key risks5 records
Key highlights7 records
Customer concentration
SoundExchange social profiles
Digital presenceSoundExchange financial estimates
Financial estimateRevenue estimate
Valuation estimate
SoundExchange leadership team
Management profileNumber of profiles
Profiles23 records
SoundExchange subsidiaries and ownership
Company hierarchySubsidiaries2 records
SoundExchange funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
SoundExchange M&A and investment
M&A and investmentM&A1 record
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about SoundExchange
What does SoundExchange do?
SoundExchange is the sole U.S. government-designated organization to administer the Section 114 sound recording license. It collects statutory digital performance royalties from 3,000+ digital service providers (satellite radio, internet radio, webcasters, cable TV music services) and distributes them to 800,000+ featured artists, non-featured artists, and sound recording rights owners. It also administers international neighboring rights collections through 100+ agreements with collective management organizations covering 93% of the global market.
Is SoundExchange a public or private company?
SoundExchange is a private company. It is classified as nonprofit foundation owned and is currently operating.
When was SoundExchange founded?
SoundExchange was founded in 2003. It employs 101 to 250 people.
Where is SoundExchange based?
SoundExchange is headquartered in Washington, United States, in the North America region.
How does SoundExchange make money?
Three revenue lines are on record. Digital Performance Royalty Collection & Distribution is the primary driver. The others are international Neighboring Rights Collections and publisher Services (SX Works, CMRRA).
Who are SoundExchange's main competitors?
Direct peers on record are ASCAP, BMI, The MLC (Mechanical Licensing Collective), PRS for Music, GEMA, SACEM, APRA AMCOS and JASRAC. IFPI is listed as a broad incumbent. CMRRA is listed as an others.
Does SoundExchange have an API?
No public API is recorded for SoundExchange.
What industry is SoundExchange in?
SoundExchange's product category is Music Rights Royalty Administration. Its primary akta.pro industry code is MPAIALAL, Sync Royalty Administration & Reporting (Cue Sheets, Claims, Audits), with a secondary code of MPAIALAF, Sync Clearance & Rights Management (One-Stop, Negotiation, Documentation). Its NAICS code is 512290.