For SiriusXM, Pandora and other digital radio companies, SoundExchange Inc. is the middleman that takes in royalties and distributes them to performing artists and record labels. Based in Washington, the nonprofit organization was created in response to federal legislation that established a digital performance right, which requires SiriusXM, Pandora and other webcasters to pay royalties for airing sound recordings.
SoundExchange shelled out $803 million — or about 16 percent of all record industry revenues — in 2015.
