Music distribution

Definition

Large streaming services, also called DSPs, usually receive music through distributors or labels. Spotify, for example, tells artists to work with a distributor.¹ Distributors connect artists and labels to Spotify, Apple Music, YouTube Music, TikTok and many more. They deliver audio and metadata, then collect the master income and pay it to the label or artist.¹²

Types of distribution

• Self-service distributors for independent artists, usually for a yearly or monthly fee or a commission¹³
• Artist and label services companies that add marketing, A&R support and, in some deals, smaller advances³
• Distribution arms of the major labels, which also distribute other labels³

The money flow

In many cases, DSPs pay distributors and labels once a month.² The distributor passes income to the label, which then pays artists and collaborators according to their agreements.² Each step adds delay, so the label's own payout speed matters a lot to artists.

Further reading

• Here's How Labels Can Pay Artists in Days, Not Quarters

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