SoundCloud vs Spotify

SoundCloud and Spotify are both European and both have free tiers, but they hold different music. Spotify, from Stockholm, licenses the largest commercial catalogue in the category. SoundCloud, from Berlin, is where artists upload directly: demos, remixes and DJ sets that exist nowhere else. Spotify replaces a record collection; SoundCloud shows what has not been signed yet.

Choose SoundCloud if

you follow electronic music, hip-hop or emerging scenes, want remixes and early tracks from unsigned artists, or make music yourself and need upload, creator and monetisation tools.

Read the SoundCloud review

Choose Spotify if

you want a complete licensed library for everyday listening, with podcasts, algorithmic recommendations and the widest catalogue, rather than a platform built around uploads.

Read the Spotify review

SoundCloud and Spotify side by side

SoundCloud and Spotify compared on company, jurisdiction, data residency, pricing and source code
 SoundCloudSpotify
Company SoundCloud Spotify AB
Headquarters Berlin, Germany Stockholm, Sweden
Founded 2007 2006
Jurisdiction EU (Germany) EU (Sweden), US-listed
Where the data sits EU EU (Sweden)
Pricing Free tier / from about €5.99/month Free with advertising / Premium subscription
Free tier or trial Free tier Free tier
Certifications and checks GDPR GDPR
Source code Closed source Closed source
Usually replaces Spotify, Apple Music Apple Music, Amazon Music, YouTube Music
Position in our Music Streaming guide #4 of 12 #6 of 12

Both are listed in our European Music Streaming guide. The table is built from the same directory data as those entries; how we check it is described in the editorial process.

Where SoundCloud and Spotify differ

Across the four points below, SoundCloud has the edge on 2 points, Spotify on 1 point and one is a tie. A count like that is a summary, not a verdict: the point that matters to you may be the one the other product wins.

What is in the catalogue

Spotify's library is the largest here and arrives through labels and distributors. SoundCloud's arrives from the artists themselves, so it holds demos, remixes, DJ sets and works in progress, while its commercial catalogue is patchy. As a replacement for a full licensed library Spotify is the stronger; SoundCloud is a discovery platform that sits beside one.

Edge: Spotify

How discovery works

Spotify's recommendations are algorithmic and rated the best in the category. SoundCloud's discovery is social: comments are timestamped to the waveform and reposts spread tracks through people rather than a recommendation system. For emerging electronic music and hip-hop that is how the scene works; for general listening the algorithm does more. It depends on what you want found.

No clear winner on this point.

Paying the artist

SoundCloud uses fan-powered royalties, which tie a listener's subscription to the artists they actually play, and it offers creator tools and monetisation. Spotify's per-stream payouts are described as low and hotly disputed. Anyone choosing on how the money reaches musicians, or wanting to publish their own work, has a clearer case with SoundCloud.

Edge: SoundCloud

Where the company sits

Both process in the EU under GDPR. SoundCloud is Berlin-based under German jurisdiction. Spotify AB operates from Stockholm under Swedish and EU law but is listed in New York, which our directory counts as a drawback while noting it is a different arrangement from a US-established processor. On European footing alone, SoundCloud is the plainer case.

Edge: SoundCloud

When neither SoundCloud nor Spotify fits

Neither suits a listener who wants full-length DJ mixes and radio shows with a tracklist up front: Mixcloud is built for that format. And if the priority is a full licensed catalogue whose royalties follow your own listening, Deezer offers that with a free tier.

SoundCloud vs Spotify: questions

Both have a free tier with advertising. SoundCloud's paid plans start from about €5.99 a month, the lowest in our music streaming category. Our data lists Spotify only as free with advertising or a Premium subscription, without a price, so a like-for-like figure cannot be given here.

For most listeners, no. SoundCloud's commercial catalogue is patchy and it is described as a discovery platform rather than a replacement for a full licensed library, with upload quality that varies enormously. It suits people whose listening is mostly independent, unsigned or DJ-led music, which is a different job from the one Spotify does.

SoundCloud. It is the only service in the category where artists upload directly, without a label or distributor, and it adds creator tools, monetisation and fan-powered royalties tied to what each subscriber plays. Spotify's payouts per stream are described as low and widely criticised.