Types of music distribution deals

Distribution is the way that recorded music gets into the hands of consumers. Traditionally, distribution companies sign deals with record labels which give them the right to sell that label's products. The distributor takes a cut of income from each unit sold and then pays the label the remaining balance. In the 20th century, distribution companies were the links between record labels and retail outlets, which included music-only stores, big-box retailers such as Wal-Mart and Best Buy, and bookstores.

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It is helpful to think of music distributors as wholesalers to better understand their role in the music industry. Record labels signed and still sign contracts with music artists. They oversaw music recording, marketing, and promotion. Consumers bought their favorite music on vinyl records, cassette tapes, and CDs and, in most cases, it was the record labels that paid to have these products manufactured. To get album copies in the hands of fans, record labels signed deals with distribution companies that in turn signed deals with retail stores to sell the albums.

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Some distributors bought albums from record labels outright, while others distributed albums on consignment. Retailers did the same thing — some bought albums outright, and others agreed to put the products on their shelves on consignment.


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Downloading brought radical changes to the music industry at the turn of the 21st century. Before crackdowns, fans downloaded millions of tracks from a wide range of artists at no charge through companies such as Napster.

Why Sign A Distribution Deal?

Distrokid is a music distribution service that gets your tracks onto all the major music stores and streaming platforms. CD Baby also gives you access to key demographic and geographic data when you distribute your music using their service. Ditto has three distribution packages available for music makers at every stage of their career - Artist, Professional and Label.

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Record Union is a distribution platform that lets you register a free account and then charges you for every release. Spinnup is an independent record label and music distribution service owned by Universal Music Group.

How Record Distributors Get Albums Into the Hands of Consumers

You can sign up for free to use their social data dashboard and special artist features, but then you pay to release every track. AWAL is a distro service that delivers your music to all the key stores and streaming platforms in over territories worldwide.


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They believe that having a curated artist roster lets them support their artists with a higher quality of service. Every artist has access to an analytics dashboard which tracks your real-time data. Ready to get started?

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Types of Music Distributors | HowStuffWorks

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