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Spotify checkmates digital distributors by partnering with Distrokid



Making headlines almost every other week, Spotify has now announced that it has made a passive minority investment in Distrokid, a distribution platform service which allows recording artists to upload their music across all online streaming platforms.

The press release read,

“Today, we’re happy to announce plans to enhance Spotify for Artists by enabling artists who upload to Spotify, via our recently announced beta feature, to seamlessly distribute their music to other platforms through DistroKid.”

This move comes after Spotify, less than a month ago, had announced that independent artists could upload their music directly on to their service, bypassing the digital distributing companies. Obviously this news didn’t go well with most distributors but they claimed to be unaffected as their service would allow artists to put up music on other platforms – Apple Music, YouTube, Deezer, including Spotify.

Spotify’s lastest move to own stakes in Distrokid was unexpected. The digital distributing company, a well-known aggregator in the business, serves more than 2,50,000 artists. Distrokid and other distributors which include TuneCore, CD Baby, Ditto and more, are known to be affiliated to independent artists who then upload their work on online streaming platforms.

“For the past five years, DistroKid has served as a go-to service for hundreds of thousands independent artists, helping them deliver their tracks to digital music services around the world, and reaching fans however they choose to consume music. The service has been a trusted and reliable partner to Spotify, which is why they’re a natural choice to enhance the experience for artists using our beta upload feature. As part of this partnership, Spotify has made a passive minority investment in DistroKid”, Spotify said in its press release.

The new partnership is a blow in the face to all those who silently disagreed to Spotify’s direct upload decision. Why? Thanks to the new deal, all artists who upload their music directly on Spotify will now have access to other streaming platforms through Distrokid.

This has opened doors to a whole new revenue stream. Other than streaming subscriptions for Spotify, it can now charge artists for rendering additional services through Distrokid. The streaming platform is slowly moving towards offering services that the traditional labels did.

Spotify has confirmed that its integration with Distrokid will be launched in the near future.

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