There’s no mystery behind the top-level function of a music distributor, because the term is self-explanatory. It’s an organization and/or platform responsible for distributing music. But there’s obviously a lot more going on in this context that needs explanation, especially if you’re a would-be professional musician.
With that in mind, here’s the lowdown on exactly what a music distributor does, how relationships with artists operate, and whether one is even necessary in the digital-first era we now inhabit.
How Do Music Distributors Work?
While musicians can take the long route and add their own tracks to streaming services and online stores without outside help, this is a complex and tedious process, as well as one that isn’t over once the songs are live. That’s where distributors step in, standing between artists and digital outlets, as well as the physical media niche, which is an increasingly minor part of this $29 billion industry.
Convenience is the calling card of such service providers. For instance, a distribution platform like DistroKid lets artists add songs to well-known services, including Spotify and Apple Music, simultaneously, rather than needing to do this individually. Any cash that your song generates in royalties gets paid back to you, with some distributors taking a percentage of this, while others charge a flat fee regardless of how successful your output becomes.
What Else Do They Do?
Part of the music distribution business model involves taking care of the administrative side of publishing and disseminating audio for the purpose of generating revenue.
There are two main things you need to know here:
- First, distributors will ensure that any songs you upload to streaming sites have an ISRC (International Standard Recording Code), which identifies them uniquely and is used to track plays and assign royalty payments
- Then, there’s the process of registering with PROs (Performance Rights Organizations). These bodies work on behalf of artists to collect royalties when their songs are played on public media, including radio stations and at live events.
When you use a music distributor, you can be confident that an ISRC will be assigned to your tracks. Most reputable providers will also have arrangements with PROs to recoup royalties outside of a streaming context, so that’s another upside. If you’re looking to make money from music as your main income stream, or combine it with other side hustles, all of this really adds up.
What About Payouts?
As mentioned, every distributor has a slightly different approach to the way it pays out cash to artists and how the earnings from tracks it handles are split.
In the case of distributors that operate on a commission basis, you won’t pay anything upfront, but will be charged anywhere from 10% to 20% of your royalties as a fee for using their services. This is something to weigh carefully, because obviously, if your track goes viral, you might be handing over a sizable chunk of change to a distributor. However, at the same time, with no costs in the short term, this represents an appealing way to get your foot in the door of the streaming world without impacting your budget.
For those who work on a flat fee basis, you’ll either pay an initial amount and potentially an additional fee for each subsequent track you add, or be charged a subscription, which may be monthly or annual. This allows you to escape the potential downsides of commission eating into your revenue, but introduces recurring costs that need to be considered.
It’s also worth looking into the frequency with which any distributor pays out royalties. Some do so consistently each quarter, while others have their own intervals in place, and others will only do so once you hit a certain milestone for earnings.
Does It Make Sense to Use a Music Distributor?
In most cases, the answer to this question is yes. You just have to pick one with the right reputation and credentials, as well as an approach to payouts and revenue splits that suits your aims, ambitions and existing audience base.
Of course, if you’re already familiar with how to get music onto streaming services and you don’t mind a bit of form-filling, this is a distributor-free route to consider. It’s just not ideal for anyone who intends to upload tracks in large volumes, or who wants to avoid the headache of ensuring royalties are paid and metrics are measured.
The Bottom Line
A music distributor can be the key that unlocks the door to a lucrative music career, and the right one allows you to focus on making brilliant music rather than getting tangled up in admin.
So long as you assess potential distribution partners on the merits mentioned, this can become a convenient and fruitful partnership.
