SoundExchange, which was founded in 2000, collects money for performers and record labels whenever songs are played on digital radio. These payments — which are separate from songwriting royalties — have grown along with the popularity of online radio, and now make up a substantial part of the music industry’s revenue. The $773 million that SoundExchange paid last year is equivalent to about 16 percent of the American recording industry’s whole income of $4.9 billion, as reported by the Recording Industry Association of America.
Source: Rise of SoundExchange Shows the Growth of Digital Radio Royalties – The New York Times