Spotify to start direct Distribution through their Spotify for Artists App.
The biggest streaming service in the world – Spotify recently started their direct distribution policy for Artists, which allows Artists to earn directly through Spotify instead of an aggregator company. This news comes around the same time Spotify allowed users to directly upload their tracks on the streaming service.
Spotify’s direct distribution deal
Spotify will enter into the digital distribution space through its Spotify for Artists App. They recently confirmed that 50% of the net revenue generated through direct distribution will be paid to the Music rights-holder. The Spotify for Artists section already has around 20,000 artists on. The direct distribution deal is still in its beta phase and will be made available for some artists.
The direct distribution deal has been in plans since few years now. The company was trying to cut down on their licensing costs paid to the distributors., and now with direct uploads and distribution Spotify is slowly and steadily turning into a Music Label.
How is it going to help Artists?
The Artists who have opted for direct distribution will earn 50% of the total revenue instead of the traditional deal where Spotify received 48% of the total revenue generated and 15% out of the remaining 52% went to distribution aggregator. The new distribution deal cuts down Spotify’s licensing and distribution costs but since it is still in its beta phase, it is early to say whether this will be favorable for an upcoming artist. The Artist will receive around 5% more than the regular deal based on streams.
With Direct uploads and distribution, the artist has more time to focus on music and Spotify is doing exactly that with a 360 degree approach. In spite of not owning copy rights for music, Spotify has taken a small step towards becoming a label.
The uploading artists will have control over their music and can access analytics and metadata to make quick changes. The royalties will be transferred to the Users bank account every month and they can check their stream counts besides other insights via Spotify For Artists.
Spotify wont be charging any administration fee for direct uploads and distribution. Any artist can upload their track on Spotify for free through the Spotify for Artists App. The service is available as an Invite Only service since it is in its Beta phase and is available to a few hundred Indie artists across America.
Over the next months Spotify has plans to approach more artists and labels to come on board. If you are an Artist an interested in knowing more about this click here.