What exactly is a distribution deal?

With a distribution deal you arrange for your music to end up on Spotify, Apple Music, Tidal and other streaming services - and, if you want, in physical shops too. The distributor takes care of the technical side and the accounting. The distributor does not invest in your music, your marketing or your career. You are purchasing the distribution service, pure and simple.

Do I need a label to release my music?

No. With a distribution deal you can get your music onto all the major platforms directly as an independent artist. You keep your masters and your creative freedom. It does mean that everything a label would normally do - promotion, playlist pitching, marketing campaigns - lands on your own plate.

What does a distribution deal cost?

That differs from model to model. Aggregators such as DistroKid or TuneCore work with a fixed amount per year or per release. Distribution labels usually take a percentage of your income - reckon on 10 to 30 per cent - but you get more in return for that. Think of playlist pitching, a dedicated contact person or help with marketing. What makes sense for you depends on where you are and how much you want to take on yourself.

What should I watch out for before signing a distribution deal?

Look at the term of the agreement, the termination conditions and any exclusivity provisions in any event. Check what the reporting looks like too: can you see per track, per country and per period where your streams and income are coming from? And read the passages about rights carefully - some distributors claim more than you would expect at first glance.

What is the difference between a distribution deal and a record contract?

Under a record contract you usually assign (part of) your master rights to the label. The label invests in recording, marketing and promotion and earns that back out of your income. Under a distribution deal you keep your rights. The distributor only provides distribution - no more, no less. That gives you freedom, but also more responsibility of your own.

Can I switch distributors if I am not satisfied?

That depends on what you have agreed. Some deals have a fixed term within which you cannot terminate, or exclusivity provisions that tie you to a single party. Other agreements can be terminated monthly. It differs from distributor to distributor and from contract to contract, and that is precisely why it is sensible to read those terms carefully in advance.

Is a distribution deal relevant for labels as well?

Certainly. For labels starting out, a distribution deal is often the logical first step to get your artists’ music onto platforms without giving up rights. Pay particular attention to transparency in the financial reporting. You have to be able to pay out to your artists on the basis of reliable figures, and that only works if your distributor supplies those figures clearly.

Can Liaise Advocaten help me with a distribution deal?

Yes. We review distribution agreements, flag unfavourable provisions and advise on the model that suits your situation - whether you are an artist or run a label. Do get in touch and we will look at the deal together.

Music distribution deal: releasing your music without a label

Spotify, Apple Music, Tidal. Getting your music onto those platforms is done through a distributor. That works perfectly well without a label. A distribution deal arranges the delivery of your recordings to streaming services and, if you want, to physical shops. The distributor does not interfere with your creative choices and puts no money into your record or your marketing. The distributor distributes your music. That is it.

Sounds straightforward. And it is, as long as you know what you do and do not get.

What you arrange yourself as an artist

You keep your masters, you decide when you release something and you give away no creative control. The distributor charges a percentage for this, usually somewhere between 10 and 30 per cent, or a fixed fee per release.

The flip side: marketing, promotion and building an audience rest entirely with you. There is no label setting up campaigns or pitching playlists on your behalf. You have to organise that yourself or hire someone to do it. Not impossible, but it calls for planning and budget you may not think of straight away when all you want is to release your music.

Distribution deals for labels starting out

For a label a distribution deal is often the logical first step. You release your artists’ music, keep the rights in your own hands and pay the distributor for its services. Sensible, but read the small print.

How long does the agreement tie up your rights? Which platforms are served, and are those enough for your artists? And perhaps more importantly: what about reporting? Can you see per track where your streams come from, per period, per country? Transparency in the financial settlement is not a luxury. It is a basic expectation that is not always met as standard.

Three models, three trade-offs

In practice you see roughly three flavours.

Aggregators such as DistroKid or TuneCore work for a fixed fee per year or per release. Accessible and quick, but the service is minimal.
Distribution labels take a percentage but deliver more: playlist pitching, marketing support and sometimes an account manager you actually know.
Traditional distributors sign selectively and offer a complete package, but they also ask for more commitment and are not open to everyone.

Which model suits you depends on your stage, your budget and how independently you want to operate. There is no universal answer to that.

What we see in practice

Many artists and small labels sign a distribution deal without having it read properly. Not because the deal is bad, but because the details only start to matter later, and by then it is too late to adjust course. How long does the agreement run? What are the termination conditions? Are there exclusivity provisions?

Those are the questions you are better off asking before you sign.

Would you like a distribution deal assessed, or are you looking for the model that fits your situation?

Feel free to get in contact with music law lawyers Jaap Versteeg and Alexandra Iedema. We are happy to look at it with you.

Practice area

Alexandra Iedema

Lawyer

Alexandra advises and litigates for clients in the cultural, music and creative sectors. She acts, among others, for artists, creative professionals, producers and entrepreneurs within these industries.

Jaap Versteeg

Lawyer

Jaap acts extensively for clients in the creative industries, including music, television/streaming/film, events, theatre, art and culture. He advises and litigates in the fields of intellectual property law, music law, unlawful publications, contract law and employment law.

Frequently asked questions about distribution deals

That differs from model to model. Aggregators such as DistroKid or TuneCore work with a fixed amount per year or per release. Distribution labels usually take a percentage of your income - reckon on 10 to 30 per cent - but you get more in return for that. Think of playlist pitching, a dedicated contact person or help with marketing. What makes sense for you depends on where you are and how much you want to take on yourself.
Certainly. For labels starting out, a distribution deal is often the logical first step to get your artists’ music onto platforms without giving up rights. Pay particular attention to transparency in the financial reporting. You have to be able to pay out to your artists on the basis of reliable figures, and that only works if your distributor supplies those figures clearly.