SoundExchange Surpasses $1 Billion in Digital Royalties for Third Consecutive Year, According to Annual Report

Ava Irving, Staff Writer -

In a remarkable display of continued growth and support for the music industry, SoundExchange, a pioneering organization in digital music royalties, has announced that it once again exceeded the $1 billion mark in collections for the third consecutive year in 2022, as indicated in its recently released annual report. 

This achievement underscores the organization's pivotal role in championing the rights of artists and creators in an evolving digital landscape.

Over the years, SoundExchange has established itself as a cornerstone of the music ecosystem by providing essential services to over 600,000 rights holders, ranging from independent musicians to mainstream sensations such as Billie Eilish and Ludacris. 

Through its steadfast commitment to distributing digital royalties from more than 3,600 online streaming platforms, SoundExchange has played a pivotal role in helping these artists not only sustain their careers but also enhance their earnings.

The milestone of surpassing $1 billion in digital royalty collections for three consecutive years is a testament to SoundExchange's enduring impact. 

This accomplishment marks a significant stride for the music tech company, pushing its cumulative royalty distributions beyond an impressive $9 billion threshold since its inception in 2003. 

This financial achievement not only underscores the growth of digital music consumption but also the critical role that SoundExchange plays in ensuring artists receive their rightful compensation.

Breaking down the $1.017 billion collected in the previous year, a substantial $813 million stemmed from statutory royalties, which form the foundation of SoundExchange's collection process. 

Additionally, $204 million was derived from direct licensing agreements that SoundExchange facilitated between labels, streaming services, and foreign collection societies. 

This multifaceted approach to royalty collection demonstrates SoundExchange's proactive stance in advocating for fair compensation models in the ever-evolving digital music landscape.

One noteworthy facet of SoundExchange's operation is its support for sound recording rights holders and artists with master ownership. 

These creators have the opportunity to access Neighboring Rights Royalties in the United States through SoundExchange, particularly when their music is broadcast on non-interactive streaming platforms like the Internet and satellite radio. 

This includes platforms like Pandora, SiriusXM, and iHeart (channels integrated into SonoSuite). By facilitating these payments, SoundExchange ensures that artists receive their due earnings for the usage of their work across various digital platforms.

Remarkably, SoundExchange's influence extends far beyond the borders of the United States. In the past year, the organization maintained its status as the world's largest neighboring rights entity, providing support to over 400,000 rights owners in managing their international royalties across an impressive 106 countries outside the U.S. 

This global reach cements SoundExchange's role as an international advocate for fair compensation and transparency in the digital music realm.

As the music industry continues to evolve and adapt to technological advancements, SoundExchange remains a steadfast pillar of support for artists and creators. 

Its remarkable achievement of surpassing $1 billion in digital royalty collections for the third year in a row highlights its unwavering commitment to fostering a sustainable and equitable environment for musicians in the digital age.