In a significant development within the music streaming industry, SoundCloud has emerged as the frontrunner in reporting accuracy and transparency. According to Legitary's latest evaluation, this platform outshines major competitors like Spotify and Apple Music. The assessment is based on aggregated 'Anomaly Scores' from throughout 2023, highlighting the reliability of stream counts across various digital service providers (DSPs). This achievement by SoundCloud underscores the importance of precise data reporting in an era where accurate metrics are crucial for content owners.

Austrian AI Firm Reveals SoundCloud's Superior Reporting Accuracy

In the vibrant autumn of 2023, Vienna-based AI auditing company Legitary released its latest rankings for DSP transparency and accuracy. The firm, known for meticulously analyzing billions of streams globally, has become indispensable for ensuring fair compensation and accurate reporting. Despite lagging behind in subscriber numbers and revenue, SoundCloud excelled in stream count accuracy. Meanwhile, TikTok struggled with consistent reporting, especially due to its viral nature, which complicates tracking short-lived spikes in song plays.

The top three platforms—SoundCloud, Spotify, and Apple Music—showed varying degrees of improvement. Deezer also made notable strides, while YouTube's performance declined. Legitary’s CEO, Nermina Mumic, highlighted that this year’s ranking emphasizes the potential for innovation and quality commitment to disrupt established norms. “Transparent and reliable reporting is vital for the music industry’s sustainable future,” Mumic stated.

Legitary’s methodology involves calculating Anomaly Scores, which measure significant deviations in stream counts relative to expected values. The close competition among top platforms suggests that smaller DSPs can match or even surpass larger ones in reporting accuracy. Mumic expressed optimism that all DSPs will continue to improve their reporting practices, ensuring fair compensation for rights holders.

This report underscores the critical need for transparent analyses of streaming data to ensure accountability and integrity within the music industry. As Mumic noted, collective efforts are essential to elevate the industry's standards and maintain its credibility.

Reflection on the Industry's Future

From a journalistic perspective, this ranking highlights the pivotal role of transparency in fostering trust between streaming platforms and content creators. SoundCloud's rise to the top signifies that size does not necessarily dictate accuracy. Smaller platforms can lead the way in establishing robust, reliable reporting systems. This shift encourages other DSPs to prioritize quality over quantity, ultimately benefiting the entire music ecosystem. The ongoing challenge remains ensuring consistent improvements across all platforms to achieve a more equitable and trustworthy industry.