Distribution Deal
An agreement between an artist or label and a distributor to deliver music to streaming platforms.
Definition
A music distribution deal is an agreement between an artist, label, or rights holder and a distribution company that handles the delivery of music to streaming platforms, download stores, physical retailers, and other outlets. Distribution deals range from simple digital aggregation services to comprehensive partnerships that include marketing support, funding, and other services.
The distribution landscape has evolved dramatically with the shift to streaming. Traditional distribution focused on manufacturing, warehousing, and delivering physical products (CDs, vinyl) to retailers. Modern distribution centers on delivering digital files to streaming platforms and download stores while managing metadata, royalty collection, and reporting.
Distribution deal structures vary widely: digital aggregators provide basic distribution for per-release fees or annual subscriptions; distribution deals provide distribution infrastructure plus potentially marketing, funding, and playlist support; label services deals offer comprehensive support approaching traditional label functions while leaving more control with artists; and major distribution provides full infrastructure of major label distribution systems.
Key deal terms include distribution fee percentage (typically 10-30% of revenue), advance funding (if any), term length and exclusivity, marketing support and commitments, release strategy and priority, and rights retention and reversion.
Why It Matters
Distribution is the essential infrastructure connecting music to audiences. Without distribution, recordings cannot reach streaming platforms, download stores, or physical retailers—they simply don't exist commercially. Every commercially available song reached listeners through some form of distribution arrangement.
For independent artists, distribution has become more accessible than ever while also becoming more complex. Dozens of digital distributors serve the independent market with varying services, pricing, and value propositions. Understanding distribution options enables artists to choose partnerships aligned with their goals and career stage.
Distribution deals increasingly offer more than just delivery. Marketing support, playlist pitching, funding advances, and strategic partnership have become distribution features. Evaluating these comprehensive deals requires understanding what's actually valuable versus what's promised but rarely delivered.
The terms of distribution deals significantly impact artist income. Distribution fee percentages, exclusive versus non-exclusive terms, and rights provisions all affect how much artists keep and what control they retain. Informed negotiation of distribution terms directly impacts financial outcomes.
Examples in Practice
An independent artist signs with a digital distributor that charges a small annual fee for unlimited releases with no distribution fee percentage. They retain 100% of royalties after the subscription cost, making this model attractive for artists with regular release schedules and growing streaming numbers.
A developing artist signs with an indie distribution company that provides $50,000 in marketing support in exchange for a higher distribution fee and a three-year exclusive term. The investment enables marketing campaigns they couldn't afford independently, trading margin for growth support.
An established independent artist negotiates a label services deal that provides distribution, marketing, radio promotion, and funding while leaving them owning their masters and controlling creative decisions. The deal positions them between fully independent and fully signed, capturing benefits of both.
A record label handles distribution for their signed artists, managing platform relationships, metadata, and royalty accounting. The artists never interact with distribution directly but receive their royalties (per their record deals) from the label's distribution revenue.