The mechanism
Each distinct recording gets its own code, permanently. A remix, a live version, a radio edit and a re-record are separate recordings and each needs its own ISRC. The code travels with the audio through distribution and reporting, which is what allows plays to be attributed to the right master.
A worked example
What it is confused with
- ISWC ISRC identifies the RECORDING. ISWC identifies the underlying WORK. One song can have one ISWC and twenty ISRCs, and confusing them is a common cause of misrouted royalties.
- UPC A UPC identifies a release or product, such as an album or single package. An ISRC identifies a single recording inside it.
Why it matters
Reissuing the same recording with a fresh ISRC splits its stream history across two identities, which fragments both the reporting and any chart or playlist momentum attached to it.
Sources: US Copyright Office
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Related: Recoupment · Black box royalties · 360 deal