DSP
A DSP (Digital Service Provider) is a platform that delivers music digitally to consumers, including streaming services like Spotify and Apple Music and download stores like iTunes.
Digital Service Providers (DSP) are platforms that distribute and stream music online.
Digital Service Providers (DSPs) are platforms that deliver music digitally to listeners, including:
- On-demand streaming services (Spotify, Apple Music, Amazon Music, Tidal, YouTube Music)
- Download stores (iTunes)
- Non-interactive internet radio (Pandora, SiriusXM)
They are the main way recorded music is consumed in the streaming era.
Most DSPs do not work directly with individual artists. Instead, they:
- License music from major labels via direct deals, and
- Ingest music from distributors/aggregators who deliver on behalf of independent artists and small labels.
Music is delivered to DSPs with complete metadata, artwork, and properly formatted audio files that meet each DSP’s technical specs.
Royalty models differ by DSP. For on-demand streaming services:
- Payouts are generally per-stream, but
- The per-stream rate is not fixed; it comes from a revenue pool divided by total streams,
- And varies by platform, territory, and subscription tier.
Royalties flow:
- From DSP → distributor
- From distributor → artist, according to their distribution agreement.
DSPs are also crucial for discovery. Key discovery tools include: