Stem

Stem is a US-based digital music distributor founded in 2015 in Los Angeles, acquired by Concord in March 2025 in a deal reported above $50 million. It charges a 5 to 10% commission on distribution revenue with no upfront fee or annual subscription. Stem built its reputation on three innovations: the first artist-facing dashboard, the first automated split payments, and single-digit commission rates. Its Scale program offers advance funding against future streaming earnings. Stem operates as a separate division within Concord Label Group, led by founder and CEO Milana Lewis and President Kristin Graziani.

Pricing and Commission

Stem does not charge upfront fees or annual subscriptions. Its revenue model is commission-based:

• Distribution commission: 5 to 10% of distribution revenue (you keep 90 to 95%)
• YouTube monetization: 5% commission (below the 20 to 30% industry standard)
• Scale advances: 20 to 30% fixed fee depending on advance size and monthly earnings commitment percentage

The exact commission rate depends on your deal terms. Stem is not a one-size-fits-all DIY distributor like DistroKid. It operates closer to a label-services model with flexible terms.

Scale Advance Funding

Stem's Scale program is its standout feature. Artists can get cash advances against future streaming earnings while retaining full ownership of their masters:

• You set the advance size and payback speed
• The total payback is the advance amount plus a fixed fee (no interest)
• Payback is a fixed percentage of future monthly earnings, not a fixed monthly payment
• Example: A $16,000 advance with a 30% fixed fee means $20,800 total payback assuming 100% monthly royalty contribution

This is not a loan. If your earnings drop in a low month, your payback drops proportionally. There is no risk of paying out of pocket. Stem's distribution fee remains low even with an active advance.

Automated Royalty Splits

Stem was the first distributor to offer automated split payments. The system enables multi-party payment distribution with transparent dashboard visibility for all collaborators. However, there is a bottleneck: all collaborators with designated royalty splits must maintain active Stem accounts with valid banking information before distribution proceeds. Each claiming party must individually authorize payment acceptance through platform login. If a collaborator delays action, payments can be held up.

Submission and Upload Process

1. Apply through stem.is or get referred.
2. If accepted, set up your Stem account and deal terms.
3. Upload audio files and cover art through the Stem dashboard.
4. Enter release metadata and set up royalty splits for collaborators.
5. Schedule release dates by individual platform.
6. Submit for distribution. Delivery typically takes 1 to 2 days.

Stem provides free ISRC barcodes and custom release scheduling. Cover song licensing is handled through a Loudr partnership requiring mechanical licenses but no additional upfront payment.

Drawbacks and Things to Consider

• Limited store coverage. Stem distributes to approximately 12 confirmed platforms, compared to 150+ for DistroKid, TuneCore, and CD Baby. If you need maximum store reach, Stem is significantly narrower.
• Not fully DIY. Stem is closer to a label-services platform than a self-service distributor. You may need to apply or be referred. It is not as simple as signing up and uploading.
• Collaborator account requirement. All collaborators must have active Stem accounts with valid banking info for split payments to process. This creates bottlenecks when collaborators delay setting up their accounts.
• No pre-orders or Shazam. Pre-order functionality is not available, and Shazam distribution is not included in standard services.
• Commission scales with success. At $50,000 in annual revenue, Stem's 10% commission is $5,000. DistroKid's flat $24.99/year fee is significantly cheaper at that earnings level. Stem's value is in services, not price.
• Concord acquisition changes the structure. Stem now operates within Concord Label Group. While the company says it has complete autonomy, the corporate parentage is a factor for some artists.

Who Stem Is Best For

Stem is best for established independent artists and labels who want transparent financial tools, automated royalty splits, and access to advance funding without signing away master rights. The Scale advance program is genuinely useful for artists who need capital for marketing, production, or touring. The 5 to 10% commission is fair for the level of service provided.

Stem is less ideal for new artists who want cheap, self-service distribution (DistroKid or TuneCore are better fits), artists who need maximum store coverage (Stem's 12 platforms vs 150+), or artists who want to keep 100% of royalties (Stem's commission model means you never keep 100%).

Pros and Cons Comparison

Notable Artists Who Use Stem

Stem has built a reputation for working with established independent artists and labels. The company's curated approach means it selectively partners with artists who have proven commercial traction. Notable artists and labels who have used or currently use Stem include:

• Brent Faiyaz: The R&B singer is one of Stem's most prominent current signees, featured on the Stem homepage. His catalog includes multiple platinum-certified singles.
• Frank Ocean: Stem distributed Ocean's critically acclaimed album "Blonde" (2016), one of the most successful independent album releases of the decade.
• Childish Gambino: Donald Glover worked with Stem for independent releases, including clearing rights around older projects and mixtapes to create new revenue streams.
• Sabrina Claudio: The R&B singer is currently featured on Stem's homepage as a distributed artist.
• Veeze: The rapper is currently featured on Stem's roster.
• LANY: The pop-rock duo partnered with Stem after leaving Interscope, using Stem's Scale advance program to fund their independent album "a beautiful blur" with marketing support including TikTok campaigns and radio promotion through iHeartMedia and SiriusXM.
• Chappell Roan: Previously distributed through Stem before moving to a major label deal. Lewis cited Roan as one of the artists Stem lost because it could not match the financial offers from majors.
• Morgan Wallen: Included in the deck Stem presented to Concord during the acquisition process as a former partner.
• Bad Bunny: Also listed in the Concord deal deck as a former Stem partner.
• Conan Grey: Previously worked with Stem before moving to a major label.
• Meek Mill: A new signing to Stem's roster following the Concord acquisition.
• Nick Hakim: Currently signed to Stem as an established independent artist.
• Jane Remover: Distributed through Stem via the deadAir label.
• Wiz Khalifa, Kate Nash, Boy George, Juicy J, Melii, Julia Michaels, Mk.gee: All have worked with Stem for various independent releases.
• Zac Brown Band, Foster the People, Toro Y Moi: Earlier Stem clients during the company's open DIY phase.

Notable labels partnered with Stem include Big Loud Records (formerly), Rimas (formerly), Fool's Gold Records, Soulection, Big Family Music, Giant Music, Boom Records, Scenic Route Records, and babygrande records.

Video Gallery

The following videos provide additional context about Stem, its leadership, and the broader music distribution industry.

Stem CEO Milana Lewis on Music Oversaturation and AI

In this Billboard On The Record episode, Stem co-founder and CEO Milana Lewis discusses how over 100,000 songs are uploaded to streaming services daily, the rise of AI-generated music, and why it has become harder for artists to break through. She covers streaming fraud, royalty thresholds, and advice for artists on picking the right distributor.

The Future of Music Distribution and Artist Independence

This video features a comparison of major digital distributors including Stem, covering commission structures, platform coverage, and which services best fit different artist career stages.

Related Resources

• Music Distribution Services Compared - Broader distributor comparison
• Music Royalty Splits Guide - How to split royalties with collaborators
• Streaming Royalty Calculator - Project your earnings
• Stem Official Website - Current services and application

Similar Music Distributors

• AWAL - Curated, invite-only distributor with label services. Similar selective model to Stem. Owned by Sony Music.
• DistroKid - Flat-fee DIY distributor with unlimited uploads. The opposite end of the spectrum from Stem's curated, commission-based model.
• TuneCore - Subscription-based DIY distributor owned by Believe. Stem partnered with TuneCore to migrate DIY users when it closed open signup in 2019.
• Symphonic - Full-service distributor with publishing admin, sync licensing, and label services. Broader service scope than Stem.
• The Orchard - Full-service distribution and label services owned by Sony Music. Enterprise-level alternative for established labels.
• Downtown Artist and Label Services - Label services distributor acquired by Universal Music Group in February 2026. Competes with Stem for established independent artists.
• Venice Music - Selective distribution and label services platform. Similar curated approach to Stem with a focus on established independent artists.
• UnitedMasters - Free distribution with brand partnership opportunities. A DIY alternative for artists who do not qualify for Stem's curated roster.
• CD Baby - One-time fee per release with 9% commission. Open-signup alternative for artists who want permanence without annual fees.