Understanding Your Music Money: SoundExchange vs. BMI vs. The MLC (And How to Actually Get Paid)

If you’re a working musician, songwriter, or producer, understanding where your money comes from—and who pays it—is critical.

Three of the most important organizations in the music industry are:

  • SoundExchange

  • BMI

  • The Mechanical Licensing Collective

They all collect royalties—but for completely different uses of your music.

And if you’re not set up correctly with all three…
👉 you’re leaving money on the table.


SoundExchange:
Digital Performance Royalties

SoundExchange collects royalties when your sound recordings are played on non-interactive digital platforms.

Examples:

  • Pandora

  • SiriusXM

  • Internet radio

Who gets paid:

  • Featured artists

  • Session musicians

  • Rights owners (labels or independent artists)

👉 If your recording is streamed on digital radio, SoundExchange pays you.


BMI: Performance Royalties for Songwriters & Publishers

BMI collects royalties when your song (composition) is publicly performed.

Examples:

  • Live shows

  • Radio airplay

  • TV broadcasts

  • Bars and venues

Who gets paid:

  • Songwriters

  • Publishers

👉 If your song is performed publicly, BMI pays you.


The MLC: Mechanical Royalties from Streaming

The MLC collects mechanical royalties from interactive streaming platforms.

Examples:

  • Spotify

  • Apple Music

  • Amazon Music

Who gets paid:

  • Songwriters

  • Publishers

👉 If your song is streamed on-demand, The MLC pays you.


The Simple Breakdown

Why Most Musicians Miss Money

These organizations don’t overlap.

That means:

  • You might be registered with BMI…

  • But missing SoundExchange royalties

  • Or collecting streaming income…

  • But not mechanical royalties from The MLC

👉 This is one of the biggest gaps we see with working musicians.


Upcoming Education Events

If you want to go deeper—and actually set yourself up correctly—we’ve got two opportunities:

Free SoundExchange Webinar: From Registration to Royalties101

📅 March 26, 2026
🕛 12:00 PM CT

Online only.

Learn directly from SoundExchange experts on how to collect your digital performance royalties.

👉 Register below:

FREE ATXM Master Class: Royalties, Publishing & Revenue Streams

Featuring Speakers from BMI and The MLC

📅 Monday, March 30, 2026, 3pm - 5pm
📍 Austin, TX (In-Person), St. Edward’s University, Maloney Room

A deep dive into:
✔ Performance royalties (BMI)
✔ Mechanical royalties (The MLC)
✔ Publishing + revenue strategy

⚠️ Limited capacity (75 attendees)


What You Should Do Right Now

  1. Register with SoundExchange, BMI, and The MLC

  2. Make sure your songs + recordings are properly registered

  3. Keep your metadata accurate

  4. Start thinking like a business—not just an artist

This is the difference between:

👉 Hoping to make money from music
👉 And building a sustainable career

Austin has the talent.

Now it’s about building the knowledge to match.

Next
Next

2026 Live Music Fund Recipients