top of page

"Comparing the Ingestion and Distribution Process of SoundCloud and Spotify: Which Platform is Better for Your Music?"

The ingestion and distribution process is a crucial aspect of digital music platforms, ensuring that artists' work is seamlessly integrated into the system, properly managed, and widely accessible. This process involves multiple stages, from the initial upload of music to its distribution across various platforms, each designed to maximize reach and monetization opportunities for creators.


In this blog, we will explore the ingestion and distribution processes of SoundCloud and Spotify, highlighting how each platform handles the journey of a track from upload to playback. Additionally, we will delve into the common elements of revenue models, artist tools, licensing, copyright management, and the technology behind Content ID systems and Digital Rights Management (DRM).


 

Ingestion and Distribution Process


SoundCloud's Ingestion Process

  • User Uploads: Artists and labels can upload their tracks directly to SoundCloud through the platform’s user interface. This process is relatively straightforward and user-friendly, aimed at enabling independent artists to share their music easily.

  • Metadata Entry: During the upload process, users enter metadata such as track title, artist name, genre, and tags. Proper metadata is crucial for searchability and discovery within the platform.

  • Encoding: Once uploaded, SoundCloud encodes the audio files into multiple formats to ensure compatibility across various devices and streaming qualities.


SoundCloud's Distribution Procedure

  • Platform Availability: Uploaded tracks are made available for streaming on SoundCloud’s platform. They can be discovered through search, recommendations, playlists, and user profiles.

  • Monetization Options: SoundCloud offers monetization options such as SoundCloud Premier, which allows artists to earn revenue from ads and subscription streams. This requires artists to own the rights to their music and meet certain eligibility criteria.

  • External Distribution: SoundCloud partners with distributors and offers integration with other platforms, allowing artists to distribute their music to services like Spotify, Apple Music, and Amazon Music.


 

Spotify's Ingestion Process

  • Direct Submission and Distributors: Unlike SoundCloud, artists typically cannot upload music directly to Spotify. Instead, they use digital distributors (e.g., DistroKid, TuneCore, CD Baby) or aggregators that have direct deals with Spotify. These entities handle the ingestion process.

  • Metadata and QC: Distributors ensure that all necessary metadata is provided and correct. They also perform quality control checks to verify the audio files meet Spotify’s standards.

  • Delivery: The distributor delivers the music files and metadata to Spotify using industry-standard protocols like DDEX (Digital Data Exchange).


Spotify's Distribution Procedure

  • Catalog Integration: Once ingested, Spotify integrates the music into its vast catalog. Tracks become searchable and available for streaming based on the metadata provided.

  • Playlist Placement: Spotify’s editorial team and algorithms curate playlists that can significantly boost an artist’s visibility. Placement in popular playlists can drive substantial streams.

  • Monetization: Spotify operates on a freemium model with ad-supported free streaming and premium subscriptions. Artists earn royalties based on the number of streams, paid out through their distributor. The per-stream payout can vary based on the listener’s subscription status and geographic location.


 

Revenue, Tools, Licensing & Copyright Management


Revenue Models

  • Ad Revenue: Both platforms monetize through advertisements for free-tier users. This includes audio ads, display ads, and video ads.

  • Subscription Revenue: Premium subscription plans provide an ad-free experience and higher audio quality. Revenue from these subscriptions is a significant income source for both platforms.

  • Licensing Deals: Platforms negotiate licensing deals with record labels, publishers, and rights holders to secure content. These deals often involve upfront payments and revenue sharing based on streaming performance.

  • Monetization Programs: Programs like SoundCloud Premier and Spotify for Artists allow independent artists to monetize their content directly through the platforms.



Artist Tools and Services

  • Analytics: Both platforms offer analytics tools for artists to track performance metrics, such as plays, likes, and audience demographics.

  • Promotion: Services include promotional tools for boosting visibility, submitting tracks for playlist consideration, and running ad campaigns.


Licensing

  • Mechanical and Performance Licenses: Platforms must secure mechanical licenses (for the reproduction and distribution of music) and performance licenses (for public playback) to legally stream music.

  • Synchronization Licenses: For any video content that features music (e.g., ads, music videos), synchronization licenses are required.


Copyright Management

  • Digital Rights Management (DRM): Both platforms use DRM technologies to prevent unauthorized copying and distribution of music.

  • Content ID Systems: Systems to identify and manage copyright infringement. These systems automatically scan uploaded content against a database of copyrighted works to detect unauthorized use.



Royalties

  • Mechanical Royalties: Paid to songwriters and publishers for the reproduction of their music. These are typically managed by collecting societies like the Harry Fox Agency in the US.

  • Performance Royalties: Paid to songwriters, composers, and publishers for the public performance of their music, managed by organizations like ASCAP, BMI, and SESAC.

  • Master Recording Royalties: Paid to the owners of the sound recording, usually the record label or the artist if they own their masters. These royalties are typically handled through the distribution agreements.


User Agreements

  • Terms of Service: Both platforms have detailed terms of service that users must agree to, which cover everything from content ownership and licensing to acceptable use policies and dispute resolution.

  • Privacy Policies: Policies outlining how user data is collected, used, and shared, ensuring compliance with privacy laws such as GDPR and CCPA.


 

Wondering what you're ACTUALLY agreeing to in those Terms and Conditions on all of the distribution platform websites when you click "Accept"?


 

Considerations

  • Digital Service Providers (DSPs): SoundCloud partners with major DSPs to facilitate seamless distribution. This ensures that tracks are delivered in the correct formats and with the appropriate metadata to platforms like Spotify and Apple Music.

  • Aggregators: SoundCloud collaborates with music aggregators who already have established distribution networks. Aggregators such as TuneCore, DistroKid, and CD Baby can integrate with SoundCloud to streamline the distribution process.


 

Content ID Systems


Content ID systems are automated tools used to identify and manage copyrighted content on digital platforms. These systems scan uploaded content against a database of known copyrighted works to detect unauthorized use and ensure proper rights management.


How Content ID Systems Work

  • Creating Digital Fingerprints: Content ID systems create unique digital fingerprints for each piece of copyrighted content. These fingerprints are mathematical representations of the audio that capture its distinctive characteristics.

  • Database of Fingerprints: The fingerprints are stored in a database, which serves as a reference for identifying copyrighted content.

  • Content Uploads: When a user uploads a new track to a platform, the Content ID system scans the audio and generates a fingerprint for it.

  • Matching Algorithms: The system compares the new fingerprint against the database to identify any matches with existing copyrighted content. Advanced algorithms ensure that the matching process is accurate and efficient.

  • Match Detection: If a match is found, the system identifies the uploaded content as potentially infringing.

  • Rights Holder Actions: Rights holders can specify actions to be taken when their content is identified. Options typically include:

  • Monetization: Allowing the content to remain on the platform and earning ad revenue or royalties from it.

  • Blocking: Removing or blocking access to the infringing content.

  • Tracking: Allowing the content to remain online while tracking its usage for further analysis.



Importance of Content ID Systems

  • Enforcing Rights: Content ID systems help enforce copyright laws by identifying unauthorized use of protected content and enabling rights holders to take appropriate action.

  • Automated Detection: The automated nature of Content ID systems ensures that copyright infringement is detected quickly and efficiently, reducing the burden on rights holders to manually search for unauthorized uses.

  • Revenue Opportunities: By identifying unauthorized use and offering monetization options, Content ID systems enable rights holders to generate revenue from content that might otherwise be lost to piracy.

  • Fair Compensation: Ensuring that artists, labels, and publishers receive fair compensation for their work by capturing revenue from all legitimate uses of their content.

  • Compliance: Platforms like SoundCloud and Spotify use Content ID systems to comply with copyright laws and avoid legal liabilities related to hosting infringing content.

  • User Trust: By actively managing and protecting copyrighted content, platforms maintain the trust of both users and rights holders, fostering a healthy digital ecosystem.


 

Digital Rights Management (DRM)


DRM refers to a set of technologies used to control how digital content is used, distributed, and copied. The primary goal of DRM is to prevent unauthorized access and piracy while ensuring that legitimate users can enjoy the content as intended by the creators and rights holders.


How DRM Works

  • Securing Content: DRM systems encrypt audio files to prevent unauthorized access. Only authorized users with the correct decryption keys can play the content.

  • Playback Control: The decryption keys are typically provided when a legitimate purchase or streaming session is initiated, ensuring that only paying or authorized users can access the music.

  • Access Control: DRM systems enforce licensing agreements that specify how content can be used. This includes restrictions on copying, sharing, and the number of devices on which the content can be played.

  • License Servers: When a user tries to access DRM-protected content, the DRM system communicates with a license server to verify the user's rights and deliver the necessary decryption keys.



  • Digital Watermarks: Some DRM systems embed invisible digital watermarks within the audio files. These watermarks contain information about the content and its usage rights, which can be used to track and identify the source of unauthorized copies.

  • Tracking Usage: DRM systems can monitor how content is accessed and used. This data helps rights holders understand consumption patterns and detect potential abuse or unauthorized distribution.

  • Unauthorized Distribution: By controlling access and preventing unauthorized copying, DRM helps combat piracy, ensuring that artists and rights are compensated for their work.

  • Monetization: DRM helps maintain the value of digital content by ensuring that only paying users can access it, protecting revenue streams for artists, labels, and platforms.

  • Licensing Agreements: DRM ensures that content usage complies with licensing agreements, protecting rights holders' interests and reducing the risk of legal disputes.


DRM and Content ID systems are critical components of digital music platforms like SoundCloud and Spotify. These technologies work together to protect intellectual property, prevent unauthorized distribution, and ensure that artists and rights holders are fairly compensated. By leveraging encryption, licensing, watermarking, and automated content identification, these platforms can maintain a secure and compliant environment for distributing digital music, benefiting both creators and consumers.

26 views0 comments

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page