SoundExchange vs ASCAP and BMI: What Each License Covers (August 2026) Guide

When I first started releasing music, I assumed signing up with one royalty collection service would cover every spin, stream, and broadcast. It took me about six months and several unpaid royalty statements to learn I was wrong. SoundExchange vs ASCAP and BMI is not a question of which is better. Each one collects a different kind of royalty, and most artists need all three to collect every dollar they are owed.

This guide breaks down what each license covers, who represents you at each organization, and how to decide which registrations you actually need. Whether you write songs, perform them, or both, you will leave with a clear picture of where your royalties come from and how to claim them in 2026.

Table of Contents

• What Are Performance Rights Organizations (PROs)?
• ASCAP: What It Covers and Who It Represents
• BMI: What It Covers and Who It Represents
• SoundExchange: What It Covers and Who It Represents
• SoundExchange vs ASCAP and BMI: The Key Differences
• Digital Performance Royalties vs Traditional Public Performance Royalties
• Do You Need Both SoundExchange and a PRO Like ASCAP or BMI?
• Royalty Split Breakdown: Publisher vs Songwriter Shares
• Other PROs to Know: GMR, AllTrack, and SESAC
• Common Mistakes Artists Make with Music Licensing
• Frequently Asked Questions
  • Do I need SoundExchange if I have ASCAP?
  • Do I need SoundExchange if I have BMI?
  • Is it better to register with ASCAP or BMI?
  • What royalties does SoundExchange collect?
  • Does Taylor Swift use ASCAP or BMI?
• Conclusion

What Are Performance Rights Organizations (PROs)?

Performance Rights Organizations (PROs) are the companies that collect public performance royalties on behalf of songwriters, composers, and publishers. When a song you wrote gets played on the radio, streamed on Pandora, performed live at a venue, or used in a restaurant, someone owes the songwriter a royalty. PROs exist to collect that money and pay it out to the right person.

In the United States, ASCAP, BMI, and SESAC handle musical works royalties. Each of these is a PRO. SoundExchange is often grouped with them, but it is technically a different kind of organization. It collects digital performance royalties for the sound recording copyright (the master), not the song itself. That distinction is the entire reason confusion exists around SoundExchange vs ASCAP and BMI.

Two copyrights exist in every recorded song: the musical work (the composition, lyrics, and melody) and the sound recording (the specific recorded version of that song). Each copyright gets paid separately, and different organizations collect each one.

ASCAP: What It Covers and Who It Represents

ASCAP (the American Society of Composers, Authors, and Publishers) is the oldest PRO in the United States, founded in 1914. ASCAP represents more than 900,000 songwriter, composer, and publisher members. Their job is to collect public performance royalties for the musical work whenever a song is played in public.

ASCAP collects royalties from radio stations (terrestrial and satellite), TV and cable networks, streaming services, live concert venues, restaurants, bars, and any other place that publicly performs music. When you hear a song on a commercial, ASCAP collects the fee from the advertiser. When a band covers a song at a club, ASCAP collects the fee from the venue owner.

ASCAP membership costs $50 for songwriters and composers. For publishers, the application fee is $100. Once registered, ASCAP pays out royalties quarterly and splits songwriter royalties 50/50 between the publisher and the writer. ASCAP also offers free membership for students under 25 through the ASCAP Foundation program.

BMI: What It Covers and Who It Represents

BMI (Broadcast Music, Inc.) was founded in 1939 as a competitor to ASCAP. BMI represents over 1.3 million songwriters, composers, and publishers, making it the largest PRO in the United States by membership count. BMI covers the same basic ground as ASCAP: public performance royalties for musical works.

BMI collects royalties from the same types of businesses ASCAP does. Radio stations, streaming services, restaurants, retail stores, and concert venues all pay blanket license fees to BMI to legally play any song in BMI’s repertoire. The money flows back to songwriters and publishers whose music was performed.

BMI membership is free for songwriters, composers, and publishers. There is no application fee, which is one reason indie artists often choose BMI as their first PRO. BMI pays out royalties quarterly and uses a 50/50 publisher/writer split for musical works royalties, the same as ASCAP. The major differences between ASCAP and BMI come down to which artists have signed with each and how each organization operates internally, not what they collect.

SoundExchange: What It Covers and Who It Represents

SoundExchange is a non-profit organization designated by the U.S. Congress to collect digital performance royalties for sound recordings. This is the single biggest difference in the SoundExchange vs ASCAP and BMI conversation. SoundExchange does not collect musical works royalties. It collects royalties for the actual master recording being played on non-interactive platforms.

SoundExchange collects royalties when sound recordings are played on satellite radio (SiriusXM), internet radio (Pandora, iHeartRadio), webcasters, and other non-interactive digital streaming services. The legal basis for this is the Digital Performance Right in Sound Recordings Act of 1995 (DPRA) and the Digital Millennium Copyright Act (DMCA), which created a statutory license under Sections 112 and 114 of the Copyright Act.

SoundExchange registration is free. Once registered, royalties are split 50/50 between the featured artist and the sound recording copyright owner (usually the label). For non-featured artists (session musicians, background vocalists, producers), SoundExchange pays a separate share. SoundExchange pays out roughly 88% of what it collects, retaining 12% for administration. Unclaimed royalties expire after three years, which is a real risk for artists who delay registration.

SoundExchange vs ASCAP and BMI: The Key Differences

The table below shows the core differences between SoundExchange vs ASCAP and BMI at a glance. Each organization represents a different copyright, collects different royalties, and pays different rights holders.

Feature	ASCAP	BMI	SoundExchange
Founded	1914	1939	2000
Collects for	Musical works	Musical works	Sound recordings
Payee	Songwriter + Publisher	Songwriter + Publisher	Featured Artist + Label
Radio royalty	Yes (all radio)	Yes (all radio)	Digital only (non-interactive)
Internet radio	Yes	Yes	Yes
Application fee	$50 writer / $100 publisher	Free	Free
Royalty split	50/50 writer/publisher	50/50 writer/publisher	50/50 artist/label
Payout cadence	Quarterly	Quarterly	Quarterly
Members	900k+	1.3M+	250k+

The most important takeaway is that ASCAP and BMI both collect the same type of royalty (musical works public performance), while SoundExchange collects something entirely different (sound recording digital performance). You can only register with one PRO for your songwriting, but you can register with SoundExchange in addition to whichever PRO you choose.

Digital Performance Royalties vs Traditional Public Performance Royalties

Traditional public performance royalties have existed since the early 1900s. They cover musical works played on AM/FM radio, TV, live venues, and anywhere else a song is performed publicly. ASCAP, BMI, and SESAC collect these royalties.

Digital performance royalties are a much newer category. Before 1995, sound recordings had no public performance right at all. Performers and labels only got paid when a record was sold. The Digital Performance Right in Sound Recordings Act changed that by giving copyright owners of sound recordings the exclusive right to perform their recordings digitally. Then the DMCA created a statutory license so non-interactive streaming services could play any recording in exchange for a royalty payment.

SoundExchange is the organization Congress designated to collect those statutory royalties. If you perform on a recording that gets played on Pandora, you are owed a SoundExchange royalty. If your song (the composition) gets played on Pandora, the songwriter is owed an ASCAP or BMI royalty separately. Same platform, two different royalties, two different payees.

Do You Need Both SoundExchange and a PRO Like ASCAP or BMI?

Yes, in almost every case you need both. Here is the decision tree I walk new artists through.

If you wrote the song yourself, you need a PRO (ASCAP, BMI, or SESAC) to collect the songwriter’s share of public performance royalties. You must pick one because you cannot register the same song with two PROs at the same time.

If you performed on a master recording that is being streamed on non-interactive services like Pandora, SiriusXM, or internet radio, you also need SoundExchange to collect your share of digital performance royalties as a featured artist or session musician.

If you are only a songwriter and never perform on recordings, you do not need SoundExchange. If you are only a performer and never write your own songs, you still need SoundExchange for the recordings, but you do not need a PRO unless you write. Most indie artists who write and perform need all three: one PRO plus SoundExchange.

I have talked to several artists on Reddit and music business forums who assumed one registration covered everything. That assumption cost them real money. One producer friend of mine left about $1,200 on the table over two years because he never registered with SoundExchange. He was signed to BMI for his songwriting but missed every digital performance royalty for his production work.

Royalty Split Breakdown: Publisher vs Songwriter Shares

Musical works royalties collected by ASCAP and BMI are always split 50/50 between the publisher and the songwriter. If you self-publish, you control both halves. If you sign a publishing deal, the publisher typically takes the publisher share, sometimes in exchange for an advance and active pitch efforts.

SoundExchange royalties are split differently. Of every dollar collected, 50% goes to the featured artist and 45% goes to the sound recording copyright owner (usually the label). The remaining 5% is reserved for non-featured artists (session musicians, background vocalists, producers). Producers can also negotiate a direct share of SoundExchange royalties separately.

When your song plays on Pandora, three different royalties potentially get paid out: a PRO royalty to the songwriter and publisher, and a SoundExchange royalty to the featured artist and label. Plus the streaming service pays the label a separate mechanical-like royalty for the use of the recording. Three checks, three different sources.

Other PROs to Know: GMR, AllTrack, and SESAC

SESAC (originally the Society of European Stage Authors and Composers) is the third traditional PRO. SESAC is invite-only and represents a much smaller catalog, mostly country, gospel, and classical songwriters. Most artists cannot join SESAC directly.

Global Music Rights (GMR) launched in 2013 and is also invite-only. GMR represents high-profile songwriters like Drake and Bruce Springsteen. Unless you are a major catalog act, GMR is not a registration option for you.

AllTrack Music Group is a newer PRO that opened to all songwriters in 2020. AllTrack accepts anyone and collects the same musical works royalties as ASCAP and BMI. If you are unhappy with your current PRO, AllTrack is one of the few alternatives where you can switch without an invite.

There is also The Mechanical Licensing Collective (The MLC), which handles mechanical royalties for streaming reproduction, not public performance. The MLC is not a PRO, but it often comes up in the same conversations.

Common Mistakes Artists Make with Music Licensing

Based on forum discussions and my own experience, here are the mistakes that cost indie artists the most royalties each year.

Registering with only one type of organization. The most common mistake I see is artists who register with ASCAP or BMI but skip SoundExchange, or vice versa. They then wonder why certain plays never show up in royalty statements.

Assuming Songtrust replaces direct registration. Songtrust is an admin service that can collect from multiple PROs and other sources on your behalf. They take 15-20% in admin fees. For some catalogs this makes sense, but if you only have domestic registrations, signing up directly with BMI is free and keeps more money in your pocket.

Forgetting about unclaimed royalty expiration. SoundExchange holds unclaimed royalties for three years. After that, the money is transferred to the Featured Artist Coalition or a similar fund. If you do not register, you lose the money permanently.

Not registering bands properly. When a song is co-written by four band members, each songwriter needs to be registered as a writer with the PRO, and each share needs to be documented. I have seen bands argue over splits years later because they never registered their share percentages correctly.

Assuming terrestrial radio pays SoundExchange. It does not. Terrestrial AM/FM radio does not owe digital performance royalties to SoundExchange. The label and artist get paid nothing when a recording is played on regular FM radio. They only get paid when it plays on digital, satellite, or internet radio.

Frequently Asked Questions

Conclusion

SoundExchange vs ASCAP and BMI is not really a comparison. They are three separate pieces of the music royalty system. ASCAP and BMI collect the same kind of royalty for songwriters and publishers, and you pick one. SoundExchange collects a different royalty for the sound recording, and you can register for it on top of whichever PRO you choose.

For most artists, the right setup is one PRO (ASCAP, BMI, or AllTrack) plus SoundExchange. Register with all of them early. Unclaimed royalties expire, and every year you delay is money you leave on the table. The whole registration process takes about an hour and is free for SoundExchange and BMI.