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SoundCloud enters the distribution game with SoundCloud Premier

SoundCloud is joining Spotify as the latest streaming giant to offer distribution services.

A good CEO can change everything. With the right person in power, a company can go from the brink of failure to being widely considered an essential component of its industry in a relatively small amount of time. They can also change public perception, raise awareness, and discover new revenue streams that do not alienate users or further complicate a product.

SoundCloud CEO Kerry Trainor cannot is unstoppable. Two years after reports of the platform’s demise began to circulate throughout the industry, Trainor’s guidance has helped the company bring in over $100 million in revenue annually, as well as many significant updates that have raised the profile and utility of Soundcloud to new heights.

Trainor’s next move may change everything. This week, SoundCloud announced the beta launch of SoundCloud Premier, a distribution service that will allow artists to upload their music to numerous streaming platforms, including Apple Music and Spotify. The company hopes the service, which is the first to be built directly into a streaming platform, will make SoundCloud a kind of ‘mission control’ for artists on the rise. Musicians can now choose from their uploaded tracks and albums and distribute to all major music services while keeping 100% of their rights and payouts (SoundCloud takes nothing) and getting streamlined payments directly from SoundCloud.

SoundCloud Premier is available at no additional cost to all eligible Pro and Pro Unlimited subscribers who are 18 years of age or older, creators of original music, have zero copyright strikes, and at least 1,000 monetizable track plays. Eligible creators can expect eligibility notifications via email and in-product notifications over the next few weeks.

In the meantime, you can learn more here. If you think you’d be eligible but haven’t gone Pro, you can upgrade now, and the company will contact you if/when you qualify. In addition to one revenue stream that reigns supreme, you’ll get the pro tools to level up your career, so that you can grow your audience and make even more music to distribute.

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Spotify doubles down on distribution by taking a stake in DistroKid

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.

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The pros and cons of Spotify’s direct distribution deals

Spotify shook the music industry late last month by announcing plans to empower all artists to directly upload music to their services. The decision marked a change from the industry norm, which has traditionally required artists to work with distributors like Tunecore and CDBaby, but it also left many questions. In particular, how much will artists get paid, and how does it compare to the deals currently being made throughout the industry?

In a new report released by MusicBusinessWorldwide late last, it is revealed that Spotify’s latest move is actually quite beneficial…As long as you know what you’re doing.

Spotify has confirmed the direct distribution deals with artists will pay a 50% share of all streaming revenue. This figure is in line with industry expectations, as anything less would make the service no better than any current distribution offerings.

But how does that compare to Spotify’s label deals? Currently, Spotify pays all major labels a 52% share of all streaming revenue. That number looks better on paper, but only before you remember that the label shares that figure with the artist. Performers working with major labels typically receive anywhere from 15-50% of that share, which is far less than artists choosing to use the direct upload model. Only hitmakers like Drake or Taylor Swift have any chance at securing the full 52%.

To further illustrate these numbers, MBW produced the following infographic:

To use an example, let’s say an artist generate $10,000 in streaming revenue over the course of a single month.

With the new directly upload deals, Spotify makes $5,000 and the artist makes $5,000.

With traditional major label deals, Spotify makes $4,800, and the label gets $5,200. The artist then gets anywhere from $780-2,550.

With the average internet distribution deal, Spotify makes $4,800, and the artist generates $4,420, while the distributor claims the remaining $780.

Taking all this into consideration, Spotify’s direct upload deals would appear to be ideal for anyone hoping to get the most significant return for their music. However, these figures do not take into account how a major label can aide an artist in getting their music heard. While an independent act may make more on paper, artists backed by labels staffed with marketing geniuses have a higher likelihood of bringing in large amounts of money as long as their music is as popular as the label hopes it will become.

Still, if an album released through a major flop, the overall take for the associated artist could be next to nothing when compared to an independent act with a similar amount of streams.

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Why you need a promotional distribution platform

With the ease of access to recording equipment and the internet, it is now easier than ever for anyone who possesses an interest in music to market themselves as a musician. Click on almost any tag on a streaming service like Soundcloud or Audiomack and you will find page after page of aspiring stars from all walks of life. Technology has lowered the bar for what it takes to be a musician to the ground floor, and as a result, the fight for attention of any kind is harder than ever.

There are many approaches to getting heard, but one time-tested strategy of the digital age is to first appeal to the influential bloggers and digital voices whose opinion on new music will reach consumers your boosted Facebook posts can only dream of. Algorithms may create great playlists, but the digital age has yet to produce a better platform for discovering artists than trusted sources with a vast knowledge of music most consumers simply do not have the time to research or enjoy.

You need the press and the press, as crazy as it may sound, needs you. Music writers are ALWAYS on the lookout for the next song that will change their lives so that they can then change the lives of their audience (who, in turn, become your audience).

You also need to protect your music, which is why services like Haulix exist to make promoting your new and unreleased songs to the entertainment industry at large a simple and secure process. Haulix makes it easy to send unique, watermarked links to your new and unreleased music to everyone on your press list in a matter of minutes. You can even customize the email invitation and the streaming page itself to better reflect your personal brand.

But why do you need a unique link for every writers and industry professional when a private Soundcloud link has worked for so many others in the past? While it’s true Soundcloud makes it possible to hide streams from the general public, there is a myriad of ways people can still access and download your music. If that happens and your music winds up leaking you will have no way to uncover who

is responsible for the leak. Someone you never intended your unreleased music to reach may have gained access through a writer you thought you could trust and within minutes your hard work could be available, for free, in perpetuity.

By using Haulix you can send as many links as you need, all at once, in the same amount of time it would take for you to generate and distribute an insecure streaming link. If anything happens we will help you find the person responsible and do what we are able to ensure they never leak music again.

You can try one-month of Haulix for free by signing up today.

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INTRODUCING: Haulix Profiles

Hello again, everyone! We usually save our big company updates for the weekend, but given the size of this new feature we thought it best to give our latest expansion a post all its own. If you read our weekly recap last week you may already know what we’re about to discuss, but this explanation will be slightly more in-depth than before. If you have any questions about the content in this article, or if you have an artist you would like to see featured on this blog, please contact james@haulix.com and share your thoughts. We can also be found on Twitter and Facebook.

One of the biggest concerns we have had in recent months when speaking with clients about their Haulix experience has been the fear of having their press contact information expire or otherwise become useless. You can only set aside so much time to update and reaffirm the information on your contact list, and as the the number of journalists you’re trying to reach grows it becomes increasingly difficult to manage.

We recognize the need for up to date information and easy database management, which is why we have created a new, state-of-the-art profile system that not only allows members of the press to see what labels have them listed as a contact, but also gives them the power to control what email addresses they are contacted at and who can contact them. When a member of the press changes their information that data is then updated on the contact page for every label that has that person listed as a contact.

To access the Profile screen, you must first access a Haulix promo. Once on that page, click the ‘Promos’ button at the top of the screen.

Next, enter your 4-digit code. If you do not have one, or if you think you may have forgotten yours, click the help button located below ‘Submit’ and you will be sent instructions on how to reset this part of your Haulix experience.

On the ‘Promos’ screen, click the ‘Profile’ button in the top left corner of the page. There may be red lettering that says ‘NEW’ next to the button.

Welcome to the ‘Profile’ page! Here you can reset your 4-digit passcode, verify alternate emails, and view a complete list of every label that has named you as a contact. All verifications require email confirmation, but those confirmation emails are sent immediately after each request is made. Unsubscribing, however, is immediate. [Emails omitted for privacy]

As I mentioned above, as soon as this information is verified your contact information will be updated in the database of every label and PR firm that has you listed as contact. It’s of the utmost importance that you double check the information on this screen before confirming it to be accurate. If anything is misspelled you may see an almost immediate change in the frequency of promos being sent your way. 

We are always on the lookout for new ways to improve our platform and better your user experience. If you have questions about the profile system, or if you have suggestions on how further improve Haulix in the future, please do not hesitate to email james@haulix.com and share your thoughts. 

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Haulix Weekly Update #13 – Email and Mobile

Hello, everyone. If you’re reading this it means you survived another week of work or school and the weekend is just a few short hours away. Yes, it’s Friday once more, and we have a nice little recap ready to help wrap up the week.

The holiday season is well under way, but before we get tied up in presents and decorations we still have a lot we hope to accomplish at Haulix HQ. The development of our mobile platform continues, and earlier this week testing began on various mobile devices. We’re not quite ready to announce a launch date just yet, but know it’s likely coming sooner than you expect.

In addition to moving forward on that project, we recently unveiled a new, in-depth description of everything offered through our ‘Email Invitation Activity Screen.’ By following this link, you can learn about how Haulix is working to help you better understand who receives your promos, who opens them, who uses them, and which accounts are dead or otherwise inactive. There’s a lot of information there, so we recommend setting aside 10-minutes or so to properly dive into the material.

Onto the blog…

The past few days on our blog have been some of our favorite to date. From the two interviews posted, both of which offer unique perspectives on life in the business, to the ‘Advice’ columns, we’re extremely proud of the content we’ve posted. We know not everyone has time in their daily schedule to see what we’re up to, so below you will find a list of links to each of the week’s stories:

That pretty much wraps up our coverage for this week. We have a couple special surprises in store next week, but that’s all the information I’m allowed to share with you at this time. Have a great weekend and make sure to stop back by the blog on Monday. If you have any questions or concerns over the weekend, email james@haulix.com. We can also be found on Twitter and Facebook.

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