Rights, royalties and the business · updated 2026-08-16

DIGITAL PERFORMANCE ROYALTY

Non-interactive digital plays of a sound recording in the U.S. are collected by SoundExchange and split with the featured artist directly.

A singer signing a music publishing contract with a publisher across a table — the deal paperwork behind the rights, royalty and publishing terms defined here.
Rights, royalties and the business — A singer signing a music publishing contract with a publisher across a table — the deal paperwork behind the rights, royalty and publishing terms defined here.

Photo: Katherine Jenkins signing her publishing deal at Rive Droite Music (opens in a new tab) by Danott (opens in a new tab), via Wikimedia Commons — CC BY-SA 3.0 (opens in a new tab)

Key takeaways

  • Non-interactive digital plays of a sound recording in the U.S. are collected by SoundExchange and split with the featured artist directly.
  • It splits between the master owner and the featured and non-featured performers.
  • Performers should register directly with SoundExchange — their share is paid to them, not through the label.
  • Watch out: assuming a distributor collects it.
  • Sits under rights, royalties and the business in this glossary, with 2 primary sources below.

Quick checklist

  • Can you define digital performance royalty in one sentence without looking?
  • Can you point at digital performance royalty in a real session, mix or contract?
  • Have you tried the practical move above at least once?
  • Would you catch the common mistake before it costs you a take?
  • Have you opened one of the primary sources below rather than a forum thread?

DIGITAL PERFORMANCE ROYALTY IN DEPTH

In the US, non-interactive digital services such as satellite and internet radio pay a statutory royalty for sound recordings, collected and distributed by SoundExchange. It splits between the master owner and the featured and non-featured performers.

How it works in practice

Performers should register directly with SoundExchange — their share is paid to them, not through the label.

The mistake people make

Assuming a distributor collects it. SoundExchange pays registered parties, and unregistered performer shares sit unclaimed.

WHERE DIGITAL PERFORMANCE ROYALTY SITS

Digital performance royalty belongs to rights, royalties and the business in the Sampled music glossary. The words on your split sheet, your distribution dashboard and your royalty statement.

TEST YOURSELF

0/3 answered · 0 correct

3 quick questions on digital performance royalty. Answers are marked instantly — nothing is sent anywhere.

  1. 1. Which statement best describes digital performance royalty?

  2. 2. What is the mistake people most often make with digital performance royalty?

  3. 3. In practice, which of these applies to digital performance royalty?

Ready for the full thing? Take the 25-question terminology test and get a certificate with your name and score.

SOURCES AND CITATIONS

Free, primary references for digital performance royalty — standards bodies, manufacturers, government offices and university course material. Each one lists the line of this entry it backs up.

  • SoundExchange (opens in a new tab)

    Primary reference · soundexchange.com

    “Non-interactive digital plays of a sound recording in the U.S. are collected by SoundExchange and split with the featured artist directly.”— the claim this source supports

    Why it counts: Published by the organisation responsible for the thing being defined, so it is a first-hand source rather than a summary of one.

  • U.S. Copyright Office — §114 (opens in a new tab)

    Government registry · U.S. Copyright Office

    “In the US, non-interactive digital services such as satellite and internet radio pay a statutory royalty for sound recordings, collected and distributed by SoundExchange.”— the claim this source supports

    Why it counts: This is the office that actually administers the right being described, so its wording governs in a dispute.

RELATED TERMS IN RIGHTS, ROYALTIES AND THE BUSINESS

Back to the full music glossary or read our latest articles.