New data reveals SoundCloud is the most transparent and accurate DSP when it comes to streaming counts.

SoundCloud leads the pack in streaming accuracy

A recent industry ranking has confirmed that SoundCloud is the most accurate digital streaming platform (DSP) when it comes to reporting stream counts. According to Legitary, an AI-powered auditing company that specialises in streaming analytics, SoundCloud surpassed giants like Spotify and Apple Music in 2023 for transparency and reliability in streaming data.

“This year’s ranking reaffirms that innovation and commitment to quality can disrupt even the most established players. Transparent and reliable reporting is the cornerstone of a sustainable future for the music industry.”

Nermina Mumic, Legitary CEO

This ranking matters. In an era where artists, labels, and publishers rely on streaming revenue, accurate reporting is crucial for ensuring fair compensation.

How Legitary measures streaming accuracy

Legitary uses AI-driven auditing to analyse billions of streams across DSPs worldwide. It assesses discrepancies in streaming count reporting, flagging instances where streams may be overcounted or undercounted. This results in a “Legitary Anomaly Score”, which enables the company to rank DSPs based on data accuracy.

A lower anomaly score indicates a higher level of reporting accuracy. In 2023, SoundCloud took the top spot, knocking off Spotify who was the most accurate platform last year.

The 2023 streaming accuracy rankings

Here’s how the top DSPs ranked based on Legitary’s analysis:

  1. SoundCloud– 0.0074 (+1)
  2. Apple Music– 0.0078 (+1)
  3. Spotify– 0.008 (-2)
  4. Deezer– 0.009 (+3)
  5. Tidal– 0.0133 (+1)
  6. Pandora– 0.0138 (+4)
  7. Amazon Music– 0.0225 (-3)
  8. YouTube– 0.0525 (-3)
  9. TikTok– 0.0731 (+2)
  10. iHeart Radio– 0.1542 (-2)

Notably, SoundCloud achieved this ranking despite having fewer subscribers and lower revenue compared to industry giants like Spotify and Apple Music. This highlights SoundCloud’s strong commitment to transparency and accurate reporting practices, setting a high standard for the industry.

Deezer and Pandora saw the biggest climb from the year prior, while Amazon Music and YouTube fell in the rankings. Despite TikTok’s improvement, it remains one of the lowest performers. This is something that Legitary attributes to the nature of viral content, which creates short-lived surges in streams that are harder to accurately track.

Why accurate streaming data matters

For the music industry, accurate streaming data isn’t just about numbers- it directly impacts revenue. When DSPs misreport streams, it can lead to incorrect payouts, meaning artists and rights holders may not receive the money they’re owed. Legitary hopes that its findings will encourage DSPs to deliver more accurate reporting and payouts in the future. 

Transparency in reporting ensures:

  • Fair compensation: Artists, labels, and publishers get paid accurately for their streams.
  • Trust in streaming platforms: DSPs that prioritise accuracy gain credibility within the industry.
  • A sustainable music economy: Reliable data enables better decision-making for artists and industry professionals.

“Reports like our latest DSP ranking underscore the critical need for transparent analyses of streaming data to ensure accountability and fair compensation in the music industry.”

Nermina Mumic, Legitary CEO

Looking ahead

Legitary’s findings highlight the need for continuous improvements in streaming accuracy across all platforms. In particular, the fight against fraudulent streams is more important than ever in the age of AI.

While SoundCloud’s top ranking is a win for transparency, the industry as a whole must push for better reporting standards to ensure a fairer ecosystem for all.

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