Spotify Acquires a 'Passive Minority Stake' in Distrokid — and Gives Distrokid Subscribers Preferential Access + Distribution to Other Platforms

Spotify has simply introduced a critical alliance with digital distributor Distrokid — one that features preferential entry to Spotify and even distribution to competing platforms.

Just final month, Spotify introduced a beta-level characteristic that allowed artists to straight add their content material onto Spotify’s platform.  Now, Spotify has severely upped the ante by forming an alliance with one of many greatest digital distributors: Distrokid.

Just final evening, Digital Music News reported on a preferential deal between Spotify and a choose group of distributors, with Distrokid main the pack.  Those offers granted artists preferential entry to ‘Spotify for Artists,’ which is required for the direct-uploading beta (and finally, the broader direct-uploading launch).

Looks like we had been onto one thing — however solely reporting on the tip of the iceberg.

Spotify’s direct-uploading announcement theoretically permits artists to bypass third-party distributors.  But distributors instantly responded that artists want all the ecosystem of streaming (and obtain) companies, with Spotify only one piece of the distribution puzzle.

So they weren’t going to place digital distributors out of enterprise, in spite of everything.

Except that Spotify has now addressed that essential difficulty.

Alongside its ‘minority funding’ in Distrokid, artists is not going to solely get preferential ‘Spotify for Artists’ entry, they’ll additionally obtain distribution to different, competing streaming platforms.