The big differentiator that SoundCloud has is that it is offering unofficial content uploaded by the user that such major labels like Apple Music or Spotify cannot see. The partnership with Dubset, a management service music rights made it possible for the first unofficial remixes of single track to go live on Apple Music and Spotify.
According to BPMSupreme, the deal with Dubset with Apple was struck in March, while that of Spotify happened in May. It is today that the remixes started streaming.
But, something is missing, and this is the mixsets of multi-songs that DJs share through their gigs. But royalties can be distributed with Dubset. According to the Stephen White, CEO of Dubset, mixes are next in line.
How Dubset works is that it scans the whole mix and also matches all aspect of the track to the snippets of its Mixbank as contained in the official songs according to the database of Gracenote’s audio fingerprinting. After matching the samples to the snippets, Dubset then shares royalties to the holders or original rights.
White also said that mixed content receives not less than 700 million listeners in a month which makes it a goldmine. And with the websites like spot on fire you can grow your Spotify followers fast if you are looking to increase your base.
This, however, is not the view of record labels that have a history of fighting such mixes that are unofficial describing them as piracy since they do not get paid for it. But with Dubset, they will get a fair share which will allow them willingly allow mix sets and remixes to be streamed across major platforms. After the royalty is shared to the right holders, Dubset will also get a cut.
White added that content owners that had been on SoundCloud and YouTube also to come over to Dubset since they will be paid.
With the news that unofficial content will be streaming live on Apple Music and Spotify, the acquisition process and potential for SoundCloud by Spotify, which is in its last stage could be reduced.
If there is not a differentiator of legal music grey area, Apple Music and Spotify will embark on competing on a feature of their products like the live radio station of Apple’s Beats 1 and Discover Weekly playlist of Spotify, and also early access and exclusives from top artists.
In all, the people we see as the real winners are the listeners and of course the artists. The listeners will hear the music they have an interest in, royalties will be paid to original right owners, and mixset DJs and remix producers can share tap into one another’s creativity without the issue of piracy hanging on their necks.