DIGITAL RADIO REPORT

Q1 2014

The facts about non-interactive streaming

Did you know? Non-interactive digital streaming services — such as Internet radio, satellite radio and cable TV music services — are eligible to use the statutory license, giving them access to any commercially available sound recording.

In exchange, they send SoundExchange their playlists and royalties. We then split the royalties between artists and record labels based on how frequently their recordings are streamed.

SoundExchange Q1 2014 Payments

$
100000000

Paid to recording artists (including
spoken-word actors and comedians)
and record labels

Our largest Q1 payment to date

$162.4 MILLION

Paid in Q1 2014

Q1 2013 18,184 Payees

Q1 2014 20,833 Payees


= 1,000
payees

The state of digital streaming

It’s no secret that the digital streaming industry is skyrocketing. In 2013, SoundExchange payments — which come from both subscription and ad-supported non-interactive streaming services — represented a large portion of total U.S. music streaming revenues.

$7 BILLION

U.S. recorded music revenue in 2013

21%
Percentage of music revenue from streaming in 2013.

SoundExchange percentage of total U.S. music streaming revenue in 2013

SoundExchange portion of U.S. recorded music industry revenue

The SoundExchange effect

For over 10 years, SoundExchange has been the independent performance rights organization helping the music and creative community thrive in the digital age by collecting and distributing digital performance royalties to featured artists and rights holders for the use of their sound recordings.

$2 BILLION

Total royalties paid by SoundExchange since its inception

SoundExchange Distributions

of all payments are paid directly to the featured recording artist

of all payments are paid to backup musicians and session players via AFM and SAG-AFTRA


SoundExchange believes backup musicians and session players play a vital role in the recorded music industry. In Q1 2014, these unsung heroes received some well-deserved recognition for their valuable contribution to the music we love and enjoy: ‘20 Feet From Stardom’ Wins Oscar for Best Documentary Feature

Streaming in the car is huge business — so which service will win?

According to Gartner Research, in 5 years 70 to 80 percent of all new vehicles will include high-speed wireless service options. As in the smartphone wars, the same players —Google, Apple and Microsoft — are battling for supremacy over the connected car.

[Read more]

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Moving Music Forward

SoundExchange is an independent non-profit organization at the intersection of technology and music. SoundExchange ensures that recording artists and recording artists are compensated when their work is broadcast by non-interactive digital radio.

SoundExchange royalties are paid by more than 2,500 non-interactive Internet radio, satellite radio and cable radio services for their use of sound recordings. These royalties are distributed by SoundExchange directly to the recording artists and record labels that earn them.