Music Distribution Deals: Facts to Know Before You Sign

[john a thompson]

As digital music technology continues to advance, the popularity of CD stores on the mainland is continuing to fall. This is due to the increasing demand for digital music and the trending desire to download it. Digital Music Distribution Submit to vevo claims more than half the global music-buying audience.

Musicians are releasing polished albums that they have produced completely on their own. They are now resourceful, independent empires that have sole rights to their products and can market them as marketing agents and producers. These musicians are ready for the big time by partnering with one of many distribution companies.

As an independent musician, what do you actually agree to as part of a distribution agreement?

Many digital distributors offer musicians the opportunity to have their music on many of the top music selling outfits. Apple iTunes is one of the most popular music platforms for consumers. While they may promise to put your music on the right track, how will it be found amongst all the other artists competing to sell? Think about the fact that main stream artists spend more money on their marketing and advertising than an unsigned musician. Major pockets fund major acts, giving them the best chance for sales.

Many unsigned musicians believe that having their music available alongside major artists gives them a higher standing and boosts their credibility. If you are able to populate old music selling websites, it is likely that your music will be a success. The next step is to make them sell. What's the point?

There are many terms and conditions that deal with businesses. It is worth taking the time to look around and finding out which distribution method works best for you. There are many good deals and many scams on the information highway.

Before you sign a distribution agreement, it is important that you ask the following questions:

o Does the artist get publicity or other promotional benefits as part of the deal?

Is there any payment that I have to make, whether statutory, collectively, or otherwise?

How much royalties will I get and what percentage are my payments?

o Is it possible to get an estimate of the profitability of your distributive methods?

What rights do I have in ending a contract?

o Am I responsible for all tax declarations on my net-income?

You should also review the terms of 'exclusivity before you sign. These terms could severely limit your freedom. Do you need to license your music digitally via preferred online formats or do you also need physical sales? Some deals are very exclusive while others allow you to market your music through other channels.