top of page
Amunson Audio Text.png

Ingestion

Soundcloud.png

  • 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.

Distribution

  • 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.

Comparing SoundCloud and Spotify

The Ingestion and
Distribution Process

BOTH

Ingestion

  • 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.png

Distribution

  • 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

  • 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.

Copyright

  • 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.

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.

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.

Tools

  • 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.

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.

bottom of page