Digital Service Providers (DSPs) Explained

In today’s digital music landscape, getting your tracks onto the right platforms is essential for reaching listeners around the world. But with so many streaming services, stores, and digital platforms out there, it can be tricky to navigate where and how your music should be available. This is where Digital Service Providers (DSPs) come in.

Whether you’re an emerging artist or an established name, DSPs are key to getting your music heard, and getting paid for it. We’ll break down exactly what DSPs are, how they work, why they’re important, and what you need to do to get your music on them. Let’s dive in!

What Is a Digital Service Provider (DSP)?

A Digital Service Provider (DSP) is any platform that distributes or streams music in digital formats. These include streaming services like Spotify, Apple Music, and YouTube, as well as online stores like iTunes or Amazon Music. DSPs make it easy for users to access and consume music from all over the world, with just a few clicks.

But DSPs do more than just deliver music to listeners; they play a vital role in how artists, record labels, and rights holders get paid for their work. They’re a bridge between the creators and their audience, making sure your music is accessible on a global scale while handling the technical and legal aspects of distribution. A win-win situation.

How Do DSPs Work?

When you release music through a DSP, you're essentially uploading your songs to a digital platform where listeners can stream or purchase them at will. But it’s not as simple as just dragging and dropping your MP3s onto the web. Here’s a breakdown of how DSPs work:

Musicians or their representatives (managers, record labels, distributors) upload the tracks to a DSP. This process often involves submitting audio files, artwork, and metadata (like the song title, album name, and release date).

The DSP ensures that all the metadata tied to your music (credits, genre, release date, etc.) is properly organized and displayed to users. This is crucial for ensuring your music is discoverable and correctly attributed.

Once uploaded and approved, the DSP makes the music available for streaming, download, or purchase. Users can stream your tracks on-demand, and in some cases, buy them outright.

DSPs track streams, downloads, and other interactions to calculate royalties, which are then paid to the artist, record label, or rights holders. The amount paid per stream or sale varies between platforms.

Why Are DSPs So Important in Today’s Music Industry?

In the pre-digital era (does anyone still remember that?), artists relied heavily on physical media (vinyl, CDs, or cassettes) and traditional radio to distribute their music. Today, however, the vast majority of music consumption happens online. DSPs are at the heart of this shift, offering benefits that make them essential for any modern musician:

DSPs make it possible for anyone, anywhere in the world, to discover and stream your music.
Fans don’t need to go to a record store or buy an album - they can find your music in seconds, whether they’re in Tokyo, New York, or Sydney.
Many DSPs provide artists with access to valuable data on listener demographics, streaming numbers, and geographic locations. This can help you tailor your marketing and touring strategies to your audience.
DSPs not only offer exposure, but also revenue streams. Through streaming royalties, music downloads, and sync licensing, artists can monetize their work on multiple platforms.

How Do DSPs Collect Royalties?

Royalties can be a confusing part of the music business, but they’re crucial for ensuring artists get paid fairly for their work. When someone streams your track or buys your music on a DSP, royalties are generated. Here’s how the process works:

Streaming royalties: When a listener streams your song on a platform like Spotify or Apple Music, the DSP collects revenue from that stream, typically through ads or subscription fees. A portion of that revenue is paid out as royalties to the artist and other rights holders, such as songwriters and producers. The amount paid per stream varies from platform to platform but is typically fractions of a cent per play.
Download royalties: On platforms that allow users to purchase music, like iTunes or Amazon Music, the artist receives a percentage of the sale price for each download. This percentage is usually higher than streaming royalties but depends on the platform’s pricing structure.
Performance royalties: If your music is played in public spaces (radio, cafes, etc.), DSPs also play a role in reporting those plays to Performance Rights Organizations (PROs), which in turn pay performance royalties to the artist.
Mechanical royalties: If your song is streamed or downloaded in certain territories, DSPs will also collect mechanical royalties, which are then distributed to the songwriter or publisher.

While the exact royalty percentages vary by platform, DSPs help streamline the process of collecting these payments so that you can focus on making music.

Essential DSPs to Know Around the World

With so many DSPs out there, it’s important to know which ones are worth focusing on. Here are some of the key platforms for musicians to have their music on:

By getting your music onto these platforms, you’re ensuring that you’re reaching audiences across different regions and demographic groups.

Tips and Best Practices for Getting Your Music on DSPs

Now that you understand the importance of DSPs, here are some tips for making the most of these platforms:

Use services like DistroKid, TuneCore, or CD Baby to distribute your music to multiple DSPs simultaneously. This saves time and ensures your tracks are available on all the major platforms.
Make sure all your track information is accurate and consistent. Poor metadata can lead to confusion and make it harder for fans to find your music.
Getting featured on curated playlists (especially on platforms like Spotify) can significantly boost your streams. Submit your tracks to playlist curators and influencers in your genre.
To stay top of mind for your listeners, release music regularly. DSPs reward consistency, and frequent releases can help you grow your audience faster.
Don’t rely on DSPs to do all the work. Use social media, email lists, and other marketing tactics to drive listeners to your music on these platforms.

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ABOUT THE AUTHOR

Gregory Walfish

Co-founder of Xposure Music, Gregory Walfish stands at the intersection of music, tech, and culture. With a software engineering background, he's passionate about artist development and technology.