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Aligning their interest with the artist, distribution partners take a stake in the recording royalties, that can go up to 50%. Also, the distributor will often offer an advance to the artist, recouped by the future cash flows.
A music distribution deal is a contract between a record label and a music distributor. The distributor will then distribute the music to various retailers, such as iTunes, Spotify, and Amazon who will sell the music to consumers. Music Distribution Deals in 2022: What Are They And Do I Need One? jamvana.com ? music-distribution-deals-what-are-... jamvana.com ? music-distribution-deals-what-are-...
Below is a basic distribution agreement checklist to help you get started: Names and addresses of both parties. Sale terms and conditions. Contract effective dates. Marketing and intellectual property rights. Defects and returns provisions. Severance terms. Returned goods credits and costs. Exclusivity from competing products. Distribution Agreement: How They Work, 4 Types (2023) contractscounsel.com ? distribution-agreement contractscounsel.com ? distribution-agreement
A digital distribution deal grants the distributor the right to distribute digital copies of the music. This includes streaming, downloads, and other internet-based methods for accessing music. A physical distribution deal, on the other hand, covers physical mediums such as CDs, vinyl, or cassettes.
Same as before, digital distributors might take a percentage of every sale before the funds reach your bank account, but this percentage is usually under 15%. Usually, your record label would take a hefty cut of your earnings at this point, but the benefit of being independent is that you get to keep everything.
The licensing deal is usually set for a fixed period, say 3 to 5 years (or more depending on the agreement) for the distributing label to market and generate revenue in exchange for a fee and royalties. But you own the masters and all the copyrights of your music by virtue of funding all the production of your albums.