What is a Music Distributor and Choosing the Right One

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A music distributor is a company that helps artists and labels get their music to online stores, streaming services, and other platforms.

They act as a middleman between the artist and the stores, handling tasks like digital delivery, payment processing, and customer support.

Choosing the right music distributor is crucial for getting your music heard and making a living from it.

There are many music distributors to choose from, each with their own fees, features, and reputation.

What is a Music Distributor?

A music distributor is a company or service that helps independent self-releasing creators and record labels deliver their music to digital streaming platforms and physical retail stores.

Unlike a record label, a music distributor doesn't usually make a creative assessment of creators' sound recordings and doesn't require long-term agreements. You can usually release on a song-by-song basis.

A music distributor handles both physical and digital distribution, or exclusively handles digital distribution via an aggregator. Some distributors offer additional services that help you market and promote your sound recordings, though that may come with an extra cost or greater share of your royalties.

Credit: youtube.com, Music Distribution - Everything You Need To Know

Music distributors are independent services, so they have no ownership of self-releasing creators' sound recordings. However, some services may offer a distribution deal, which could involve a share in the royalties earned from the sound recording they distribute.

Some music distribution services are free to use but take a percentage of royalties, whereas others will charge an upfront fee in exchange for paying creators 100 percent of the royalties they collect.

For more insights, see: Record Label Distribution Companies

Benefits and Types of Distributors

Music distributors can be a game-changer for emerging artists, offering a range of benefits and pricing options.

Some distributors, like CD Baby, have been around since 1998 and have a good reputation, which can give artists peace of mind.

CD Baby Pro includes publishing royalties collection, which means artists can earn money from their music in multiple ways.

On the other hand, DistroKid has a free basic distribution plan that allows artists to release up to 12 songs per year to 13 DSPs, which can be a great option for those just starting out.

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However, DistroKid's paid plans start at $24.99/year, which may not be feasible for all artists.

LANDR offers flexible pricing options, including a one-time fee for single or album releases, which can be a cost-effective option for some artists.

LANDR's Option 3, which comes with their All Access Pass, also includes unlimited releases with 0% commission, which can be a great deal for artists who release frequently.

Here are some key benefits and types of distributors to consider:

Choosing a Distributor

Choosing a distributor can be a daunting task, especially with so many options available. There are dozens of open distribution platforms to choose from, each with their own pricing and features.

Some platforms charge a flat fee per single or album, while others offer a subscription basis. This can be economical for artists who plan to release a large number of songs per year.

Consider the commission fees of each distributor. For example, 10% of your royalties may not seem like much, but if you're making $50,000 from streaming, that's a significant amount.

Here are some popular music distribution services to consider:

Research the distributor's customer support line before committing to a contract. You want to work with representatives who respond quickly and address your concerns diligently.

Choosing a Provider

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If you're looking for an open distribution platform, there are dozens to choose from. Some platforms charge a flat fee per single or album, while others offer their service on a subscription basis.

Think about how many songs you plan to release per year – does it make more sense to pay an annual fee and release an unlimited number of songs, or pay separately for each release? Subscriptions often end up being more economical, but you may need to keep paying the annual fee for as long as you want to keep your music on DSPs.

When considering a distributor, check if they take any commission. For example, 10% of your royalties may not seem like much when you're first starting out, but if you're making $50,000 from streaming, that's a sizable amount.

Some distributors work with a wide range of DSPs, while others may only send your music to the most popular outlets. If you're hoping to gain an international following, make sure the distributor you choose works with popular outlets beyond your country.

Expand your knowledge: Find Loved Songs

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Here are some popular music distribution services to consider:

Make sure you're comfortable with your preferred distributor's payment schedule, which may be weekly, monthly, quarterly, or as soon as they reach a certain threshold. You'll also want to check if they have a way to keep track of content like YouTube videos, TikTok, or Instagram reels, and get your royalties and ad revenue.

Preferred Distributor Program

If you're looking to partner with a distributor that's a cut above the rest, you'll want to look into YouTube's Preferred Distributor Program. This program highlights top-notch aggregators who have met YouTube's technical and business best practices.

To become a Preferred Distributor, these partners must offer content delivery and management services, including Art Track delivery, Content ID rights management, and asset management. They must also provide usage and revenue reporting for their clients' content on YouTube and YouTube Music.

One key requirement for Preferred Distributors is that they must have delivered over 50,000 Sound Recordings and 50,000 Art Tracks to YouTube and YouTube Music. This shows they have a proven track record of success in delivering high-quality content.

See what others are reading: Great Thou Art Carrie Underwood Sheet Music

Credit: youtube.com, Overview on Distribution by ATHome, how to select a right distributor & various distribution models

Preferred Distributors must also be proficient in managing content on YouTube and YouTube Music, including Art Track delivery, Content ID rights management, and asset reporting. They must be able to deliver artist IDs via DDEX and use DDEX to automate creation of Official Artist Channels.

In addition, Preferred Distributors must manage all aspects of their CMS account on their own, without hiring any third-party to manage any aspect of it. They must also be certified in all applicable YouTube Certification courses.

Here are the key requirements for Preferred Distributors:

  • Partner provides YouTube usage and revenue reporting to its clients (artists and or record labels) and remits payments to clients in a timely manner.
  • Partner is proficient in managing content on YouTube and YouTube Music, including Art Track delivery, Content ID rights management, and asset reporting.
  • Partner must have delivered over 50,000 Sound Recordings and 50,000 Art Tracks to YouTube and YouTube Music.
  • Partner has the ability to deliver artist IDs via DDEX, and to use DDEX to automate creation of Official Artist Channels.
  • Partner manages all aspects of its CMS account on its own, including Content ID claims. Partner does not hire any third-party to manage any aspect of its CMS account.
  • Partner is certified in all applicable YouTube Certification courses.

Industry and Costs

The cost of working with a music distributor can vary significantly depending on the platform you choose. Some distributors charge a per-release fee, where you pay a specific amount for each track or album you distribute.

These fees can add up quickly, especially if you're releasing multiple tracks or albums. Extras like YouTube Content ID or distributing cover songs and/or remixes often incur additional charges on top of the fee.

Other distributors work on a subscription model, where you pay for monthly or annual access to their services. Be aware that some platforms will take down your music if you stop paying, so always check the terms of service and any contractual agreements before joining.

If this caught your attention, see: How Much Does Amazon Music Pay per Stream

Industry Evolution

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The music industry has undergone a significant transformation with the advent of the internet. Today, 87.7% of UK music consumption is via streaming services like Spotify, Apple Music, and Amazon.

The internet has made digital distribution a reality, allowing artists to release their music directly to streaming platforms. This has reduced the barrier to entry for both artists and distributors.

Physical distribution is no longer the primary focus for most musicians, with vinyl sales reaching 5.9 million in 2023, the highest figure since 1990, but still dwarfed by 179.6 billion streams of music in the same year.

Record labels have lost their exclusive dominance in the music industry, with over 100,000 record labels worldwide, ranging from major labels to DIY/solo labels.

Distribution Costs

Distribution costs can vary depending on the distributor you choose and their payment model. Some distributors charge a per-release fee, while others work on a subscription model or royalties-share basis.

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CD Baby, for example, charges a one-time fee of $9.95 for a single or $29 for an album, with a 9% commission. Distrokid offers unlimited uploads for a yearly fee of $19.99, with no further commission. This means artists keep 100% of their generated earnings.

TuneCore also charges on a release-by-release basis, but their fees are somewhat higher than other distribution companies. LANDR, on the other hand, offers flexible pricing options, including a one-time fee of $9 for a single or $29 for an album, with a 15% commission.

It's worth noting that some distributors, like Distrokid, offer no commission, while others, like LANDR, take a percentage of your royalties with lower-priced tiers. CD Baby's Pro package, however, includes publishing royalties collection.

Here's a breakdown of some popular music distribution services and their fees:

Ultimately, the cost of distribution will depend on your specific needs and the distributor you choose.

Examples and Services

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There are many music distributors to choose from, each with their own strengths and weaknesses.

Some popular global distribution companies include FUGA, The Orchard, ADA, Ingrooves, Tunecore, and Amuse.

CD Baby is a well-established music distribution company that covers both digital and physical distribution, with no yearly fee.

Distrokid offers unlimited uploads for a yearly fee of $19.99, with no further commission, making it a great choice for artists who plan on releasing a lot of music.

TuneCore passes along 100% of royalties to artists, but charges higher fees on a release by release basis.

LANDR charges $9 to $89 per year for distribution to over 150 DSPs, including TikTok, Shazam, and others.

Here are some popular music distribution services to consider:

Some popular music distribution services to consider include CD Baby, Distrokid, TuneCore, and LANDR.

CD Baby offers no yearly fee, but rather works with artists on a release by release basis to distribute their music to over 150 platforms.

Credit: youtube.com, What You Need To Know About Music Distribution | Music Business 101

Distrokid's annual fees are on the higher end, but they offer robust analytics and reporting, as well as built-in publishing services.

TuneCore is a well-respected music distribution service that passes along 100% of royalties to artists, but charges higher fees on a release by release basis.

LANDR charges $9 to $89 per year for distribution to over 150 DSPs, including TikTok, Shazam, and others, and offers flexible pricing options.

Do I Need a Distributor?

You don't necessarily need a record label to release your music, but you do need a way to get your sound recordings onto digital streaming platforms and physical retail stores. A music distributor can help you do just that.

A distributor is a company that distributes your music to the public, covering both physical and digital distribution. Digital distribution, on the other hand, is the process of uploading your music to streaming platforms and digital stores.

You can choose to work with a distributor or an aggregator, but you can't release a sound recording directly to most Digital Service Providers (DSPs). You'll need to either have a record label or use a music distributor or aggregator to do it for you.

Credit: youtube.com, Music Distribution vs Music Publishing Administration

Working with a distributor is often easy, as you simply sign up to the service and follow their process to upload your sound recordings, cover art, and release metadata. Some distributors offer additional services like marketing and promotion, but these may come with an extra cost or a greater share of your royalties.

A distributor has no ownership of your sound recordings, so you'll retain the copyright and related rights. However, some services may offer a distribution deal, which could involve a share in the royalties earned from the sound recording they distribute.

You can work directly with a distributor to get your music live on streaming platforms and digital stores, just like a record label would do on your behalf if you signed a record deal. This way, you'll maintain full creative control over your music and career.

Distributors in Action

Music distributors play a crucial role in getting your music into stores, and these days, that means getting it onto digital service providers like Spotify, Google Play Music, and Amazon Music.

Suggestion: Play Music

Credit: youtube.com, Music Distribution Explained - All you need to know in 2022

They collect royalties generated by streams and downloads of master recordings and allocate them to the rights holders, making it easier for you to receive your fair share.

A reputable music distribution service will also have access to editorial and playlist teams on DSPs and elsewhere, which can help get your music marketed to the right people.

Some distributors, like major distributors, are essentially just the distribution wing of major record labels like Universal Music Group, Sony, and Warner Music Group.

Independent distributors like Redeye Worldwide and IDOL can cut deals with bigger labels while remaining independent actors, making their own money by taking a percentage of the royalties generated by the master recording.

As of 2017, physical music sales make up less than ¼ of revenue generated by recordings, so music distributors focus primarily on getting your music onto digital platforms.

Distributors will also ensure your music is available on non-music-specific platforms like Instagram and TikTok, which can all generate royalties for you.

Working with a distributor can make life a lot easier for you, especially when it comes to getting your music added to places like Spotify and Tidal, which don't allow direct uploads.

Frequently Asked Questions

How do music distributors get paid?

Music distributors earn money through a revenue-sharing model, taking a percentage of sales or streaming revenue. They get paid by sharing a portion of the revenue generated by the music they distribute.

What is the difference between a label and a distributor?

A record label invests in artists, taking a significant share of their earnings and song rights, while a distributor provides services for a smaller upfront fee and shorter contract. This fundamental difference affects how artists are supported and compensated.

Jackie Purdy

Junior Writer

Jackie Purdy is a seasoned writer with a passion for making complex financial concepts accessible to all. With a keen eye for detail and a knack for storytelling, she has established herself as a trusted voice in the world of personal finance. Her writing portfolio boasts a diverse range of topics, including tax terms, debt management, and tax deductions for business owners.

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