Spotify doubles down on distribution by taking a stake in DistroKid

Spotify Followed Artists

When Spotify unveiled plans to allow artists to directly upload music to their service in late September those working in the distribution market did not seem too concerned. After all, artists would still need their services if they wanted to make their music available on the numerous competing platforms that did not offer such tools.

This week, Spotify gave them another reason to be concerned.

The streaming giant announced Wednesday morning through its blog that the company has taken a stake in DistroKid, a Boston-based distribution service that allows recording artists to upload music across online stores and streaming platforms including Spotify’s biggest rival, Apple Music.

This means, whenever artists directly upload their music to Spotify they will also be able to distribute that same upload to all competing platforms, as well as digital retailers. Spotify will receive a percentage of the overall royalty payout, but at this time the exact amount to be retained the company is not available.

Speaking to the deal, Spotify wrote:

“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.”

A release date for the integration has not been made available. We will update this story as more information becomes public. In the meantime, feel free to review our breakdown of Spotify’s direct upload deals, which initially appeared on the blog earlier this month.

James Shotwell

James Shotwell is the Director of Customer Engagement at Haulix and host of the company's podcast, Inside Music. He is also a public speaker known for promoting careers in the entertainment industry, as well as an entertainment journalist with over a decade of experience. His bylines include Rolling Stone, Alternative Press, Substream Magazine, Nu Sound, and Under The Gun Review, among other popular outlets.