What this new tool would do is effectively allow indie artists to bypass traditional digital distributors when uploading to and collecting royalties from Spotify. Previously, in order to get music onto Spotify (or most other digital streaming services), artists would have to go through a distributor like DistroKid, CD Baby, TuneCore, Record Union or EmuBands. (Labels either have their own distribution arms, or can use services like the Orchard.)
DistroKid, for example, also allows those it distributes to collect 100 percent of royalties and earnings, accounts monthly and allows unlimited album and song uploads, all for $19.99/year — and, as a preferred distributor, gives its users instant access to Spotify For Artists. Services like TuneCore and CD Baby generally charge a flat fee per album or single, with additional options for publishing administration and social media services, for example. But those distribution companies service all streaming services and digital download stores on a global basis.