{"id":28369,"date":"2026-11-15T12:12:44","date_gmt":"2026-11-15T12:12:44","guid":{"rendered":"https:\/\/interspacemusic.com\/blog\/soundexchange-producer-royalties-lod-artist-share\/"},"modified":"2026-11-15T12:14:16","modified_gmt":"2026-11-15T12:14:16","slug":"soundexchange-producer-royalties-lod-artist-share","status":"publish","type":"post","link":"https:\/\/interspacemusic.com\/blog\/soundexchange-producer-royalties-lod-artist-share\/","title":{"rendered":"Producer Royalties on SoundExchange: One LOD Per Artist Share"},"content":{"rendered":"<p>A producer credit or a percentage in a distribution deal does not automatically redirect a featured artist\u2019s U.S. digital-radio royalties. SoundExchange requires a separate Letter of Direction, or LOD, from the artist whose share will fund that payment. The practical question before release is simple: <strong>whose artist share is paying the producer, and has that person signed the SoundExchange paperwork?<\/strong><\/p>\n<p>This is a narrow but consequential royalty lane. SoundExchange collects sound-recording performance royalties from eligible non-interactive services, including satellite and internet radio. It is separate from the on-demand revenue in a distributor\u2019s Spotify or Apple Music statement, as our <a href=\"https:\/\/interspacemusic.com\/blog\/soundexchange-featured-artist-45-percent-unclaimed-royalties-three-years\/\">guide to the SoundExchange artist share<\/a> explains. The producer LOD reaches the featured-artist portion of that radio income, not every royalty a producer might have negotiated.<\/p>\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\">\n<div class=\"wp-block-embed__wrapper\"><\/div>\n<\/figure>\n<h2>One percentage can describe two different deals<\/h2>\n<p>Suppose a producer has a 10% participation in a recording\u2019s distributor receipts. That agreement does not itself tell SoundExchange to pay 10% of the featured artist\u2019s radio allocation. <a href=\"https:\/\/www.soundexchange.com\/what-we-do\/for-artists-labels-and-producers\/letters-of-direction\/\">SoundExchange\u2019s LOD guidance<\/a> says the form\u2019s percentage must be stated as a percentage of the <em>featured artist\u2019s share<\/em> for each recording, rather than as producer points or a fraction of all recording revenue.<\/p>\n<p>The distinction changes the arithmetic. If an artist\u2019s SoundExchange allocation for a recording is $200 and the valid LOD directs 10% of that artist share to the producer, the instruction covers $20. It does not instruct SoundExchange to take 10% of the service\u2019s total payment or 10% of the master owner\u2019s allocation. The figures are an illustration of the direction, not a quoted per-play rate.<\/p>\n<p>Write both percentages into the deal with their bases named. A label can reconcile distributor income and SoundExchange income only if it knows which pool each percentage applies to. Treat the LOD as a payment instruction that implements the artist\u2019s agreed share, not as a substitute for the underlying producer agreement.<\/p>\n<h2>Features and groups change the signature count<\/h2>\n<p>SoundExchange says a producer seeking a portion of two featured artists\u2019 allocations needs an LOD from each artist. If only one signs, the stated percentage applies only to that signer\u2019s allocation. A guest feature therefore creates a real choice: is the producer paid from the lead artist\u2019s radio share alone, or from both artists\u2019 shares?<\/p>\n<p>The signature rule also reaches groups. <a href=\"https:\/\/www.soundexchange.com\/2025\/09\/30\/letters-of-direction-signature-requirements\/\">SoundExchange\u2019s signature requirements<\/a> say each group member who performed on the relevant recording must sign, unless each uses an authorized LOD signatory on file. A manager\u2019s ordinary authority or power of attorney does not, by itself, make that manager the SoundExchange LOD signatory.<\/p>\n<p>Do not use a producer LOD to settle a featured-artist split. SoundExchange treats two featured performers as collaborators and allocates their artist share between them; its LOD process is for eligible creative participants such as producers, mixers and engineers. Set the featured-artist allocation first, then decide what each artist directs to the producer.<\/p>\n<h2>File a recording-level instruction before the money moves<\/h2>\n<p>The <a href=\"https:\/\/www.soundexchange.com\/what-we-do\/for-artists-labels-and-producers\/letters-of-direction\/\">required packet<\/a> includes a signed LOD and a repertoire chart naming each recording, its effective date, its payment percentage and its International Standard Recording Code (ISRC) when available. An electronic signature made through a signing service needs its completion certificate or equivalent. Missing documents delay activation; SoundExchange says a complete, valid LOD takes at least two weeks to process.<\/p>\n<p>That makes the release checklist concrete. Confirm the producer\u2019s legal payee, identify every featured performer, agree which artist allocations fund the participation, and put the correct ISRCs and effective dates on the chart. Keep the signed deal and the submitted instruction together with your catalogue records. Our <a href=\"https:\/\/interspacemusic.com\/blog\/three-metadata-failures-that-block-music-royalties\/\">metadata failure checklist<\/a> shows why matching recording identifiers matters beyond this one collection route.<\/p>\n<p>For a label using InterSpace Distribution or ToneGrid, the useful control is a split record that distinguishes distributor receipts from outside neighboring-rights collections. The dashboard can show the former; the SoundExchange LOD governs this particular artist-share payment. Make that separation explicit before anyone expects a producer payment from the wrong statement.<\/p>\n","protected":false},"excerpt":{"rendered":"SoundExchange producer royalties need a Letter of Direction for each featured artist share that funds the payment. Learn why distributor points do not carry over, how to state the percentage, which signatures count and what recording data to file before radio royalties are paid.","protected":false},"author":6,"featured_media":28393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"_jetpack_hide_featured_image":false,"_jetpack_featured_image_duplicate_dismissed":0,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[3],"tags":[522,24,56581,341,1830],"class_list":["post-28369","post","type-post","status-publish","format-standard","has-post-thumbnail","category-best-practices","tag-distribution","tag-music","tag-producer-royalties","tag-royalties","tag-soundexchange","cs-entry","cs-video-wrap"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Producer Royalties on SoundExchange: One LOD Per Artist Share<\/title>\n<meta name=\"description\" content=\"A producer credit or a percentage in a distribution deal does not automatically redirect a featured artist\u2019s U.S. digital-radio royalties. SoundExchange requires a separate Letter of Direction, or LOD, from the artist whose share will fund that payment. The practical question\u2026\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/interspacemusic.com\/blog\/soundexchange-producer-royalties-lod-artist-share\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Producer Royalties on SoundExchange: One LOD Per Artist Share\" \/>\n<meta property=\"og:description\" content=\"A producer credit or a percentage in a distribution deal does not automatically redirect a featured artist\u2019s U.S. digital-radio royalties. SoundExchange requires a separate Letter of Direction, or LOD, from the artist whose share will fund that payment. 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