SoundExchange has revealed it collected $1.017 billion in 2022—a decrease of 4.1% compared to 2021.
The annual report also reveals that distributions fell 3.4% in 2022 to $959 million, down from $993 million in 2021. The primary cause of the decline appears to be a decline in foreign collection societies and direct licensing arrangements with labels.
$813 million of the $1.017 billion collected came from statutory royalties; $204 million was paid from direct licensing deals between labels and services and foreign collection societies. These royalties were collected from more than 3,600 digital streaming platforms and distributed to more than 600,000 creators and rights holders.
SoundExchange CEO Michael Huppe reveals the company crossed the $9 billion threshold for distributing royalty payments since its inception in 2003.
“SoundExchange is driving policy efforts to ensure artists are treated with respect both at home and abroad,” Huppe continues. “In the United States, as a leader in the musicFIRST coalition, the company is working to get the American Music Fairness Act passed so that all creators are finally paid when their songs are played on AM/FM radio.”
“In Europe, SoundExchange is focused on supporting ‘national treatment’ and ending discrimination against creators who receive nothing for their work simply because of their nationality. Through these efforts, creators in America and around the world will finally receive the respect of being paid fairly for their work.”
“Looking ahead, we are energized by where the music industry is headed. Creators are embracing tools that diversify their revenue streams, deepen their fanbases, and encourage collaboration. Through the use of data, SoundExchange is making it easier for digital service providers to fulfill their obligations to pay creators fully and fairly for their work.”
SoundExchange claims a 6.6% operating administration rate or a 7.2% consolidated administration rate. It claims it has maintained one of the music industry’s lowest admin rates. The company’s expenses grew 17.5% to $74 million from the prior year’s total of $63 million.