SoundExchange was created to collect and distribute digital performance royalties. They keep a 4.5% cut for administrative costs and pay the remainder as follows:

• 45% to the featured artist
• 5% to the non-Featured artists (backing musicians)
• 50% to copyright owner (typically the record label)

If you are both an artist AND a label, you’ll need to register with SoundExchange twice: once as the sound recording copyright owner, and once as the featured artist.

It’s important to note, performing rights organizations such as ASCAP and BMI do NOT collect digital performance royalties. Non-interactive royalties are NOT publishing royalties (which traditionally get paid to songwriters and publishers); they’re related to the usage of a particular sound recording and the performers and label that helped to create that track.

More than 110,000 artists and rights owner accounts are registered with SoundExchange. We have paid out nearly $3 billion in royalties since our first distribution. – See more at: http://www.soundexchange.com/artist-copyright-owner/digital-royalties/#sthash.uQPumrch.dpuf