What to know about Digital Service Providers (DSPs)

    What to know about Digital Service Providers (DSPs)

    A Digital Service Provider (DSP) is a web-based platform where listeners can discover your music and consume digital albums and singles.

    Within this, users have two consumption options: they can either download audio assets (iTunes and Amazon Music) or access streaming services such as Spotify, Apple Music, Tidal and YouTube Music.

    Because the streaming market has grown significantly over the last ten years, DSPs are sometimes incorrectly referred to as Digital Streaming Providers.

    Your music is distributed throughout the major retailers, including both local and International DPSs, by Apprise Music’s supply network. On behalf of our clients, we then gather data, mechanical royalties, and performance royalties from various sites.
    Your workday will be made easier by the supply chain, which just requires one upload of your release to generate various revenue sources.

    Models of Business

    The user pays per track or album in a download store. This makes it simple to identify revenues and allocate royalties to the appropriate owners.

    It becomes a little more complicated on streaming platforms because there are two types of customers:

    Premium: users who pay a monthly fixed subscription fee to access full services and catalogs.
    Freemium: users who consume music by accepting advertisements in exchange for limited access to services.

    DSPs collect all revenues and distribute them to music providers based on market share.

    All of the major DSPs charge a standard subscription fee; if you have a large number of subscribers who listen to your music frequently, your share of the revenue will be proportional.
    As a result, the average revenue per 1000 streams varies by platform.

    Top 4 Digital Service Providers

    When considering a global strategy, China is excluded because it is a specific territory with a high volume of music streaming consumption and thus the only relevant approach here is local. Instead, we’ll concentrate on the four major platforms outside of this domain: Spotify, Apple Music, Amazon Music, and YouTube Music.

    Sort Briefs:


    Spotify was founded in 2008 and is now available in over 160 countries. It is the world’s largest digital music and podcast service, providing access to millions of songs and other content from creators all over the world.

    Spotify stated that by the end of 2021, it would have 180 million paid subscribers and 406 million monthly active users.

    Apple Music

    Apple Music was launched in 2015 and is now available in over 160 countries. Outside of China, it is the second largest streaming service. The platform places a strong emphasis on editorial content, with a particular emphasis on carefully curated, human-based content.

    Apple Music claimed 78 million subscribers in 2021.

    Amazon Music

    Amazon Music, formerly known as Amazon MP3, was founded in 2007. For historical reasons, the service is divided into six distinct offers, not all of which are available in every country. The service works well on a variety of devices, including voice assistants.

    Amazon Music claimed to have 62 million subscribers by 2021.

    YouTube Music

    YouTube Music was founded in 2020, following the merger of Google Music, which was founded in 2011. It is the fastest growing streaming service that works closely with YouTube to improve the user experience with videos.

    YouTube Music claimed to have 50 million subscribers by 2021.


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