Distributor

In-Depth Explanation

A distributor is a company that delivers music from artists and labels to retail platforms where consumers can stream, download, or purchase it. In the modern music industry, the term almost always refers to digital distributors (also called aggregators) that deliver music to streaming services like Spotify, Apple Music, and Amazon Music. Distributors format audio, assign ISRC and UPC identifiers, and collect royalties on behalf of the artist.

How Music Distribution Works

A distributor sits between the artist (or label) and the retail platform. The artist provides the finished audio files and metadata. The distributor encodes the audio to platform specifications, generates the required ISRC and UPC codes, packages everything in the DDEX metadata standard, and delivers it to 150+ Digital Service Providers worldwide.

When consumers stream or purchase the music, the DSP pays royalties to the distributor. The distributor aggregates royalties from all platforms, deducts their fee, and pays the artist.

The distributor does not own your Master Recordings. You retain full ownership and control. This is the fundamental difference between using a distributor and signing with a Record Label, where the label typically owns or controls the masters.

Types of Distributors

DIY Digital Distributors

Open to anyone. You sign up online, upload your music, and pay a fee. Examples: DistroKid ($24.99/year, 100% royalties), TuneCore ($24.99/year Rising Artist, 100% royalties), CD Baby ($9.99 per single one-time, 91% royalties).

These services handle delivery and royalty collection but offer limited marketing support. They are designed for independent artists who want to self-release music without giving up ownership or a percentage of revenue.

Label Services Distributors

Invite-only or application-based. Examples: AWAL, EMPIRE, Venice Music, ONErpm, The Orchard. They take 15% to 20% of royalties but provide label-level services including editorial playlist pitching, marketing advances, sync licensing support, and PR campaign funding.

Physical Distributors

Companies that manufacture and ship CDs, vinyl, and merchandise to retail stores. With physical music revenue growing in recent years (vinyl sales surpassed CD revenue in the US in 2022), some distributors like CD Baby still offer physical manufacturing and fulfillment alongside digital delivery.

Real-World Example

An independent artist wants to release a 10-track album. They compare three options:

• DistroKid: $24.99/year subscription. Unlimited uploads, 100% royalties. If the album generates $8,000 in streaming revenue over a year, the artist keeps $8,000 minus the $24.99 fee. Net: $7,975.01.
• CD Baby: $14.99 one-time album fee. 91% royalties. Same $8,000 in revenue, artist keeps $7,280 minus $14.99. Net: $7,265.01. Music stays online permanently.
• AWAL (label services): No upfront fee. 15% commission. Same $8,000 in revenue, artist keeps $6,800. But AWAL pitches the album to Spotify editorial playlists, and the artist lands a New Music Friday placement that generates an additional $3,000 in streams. Net: $9,350.

The right choice depends on whether you need just delivery (DIY distributor) or delivery plus marketing support (label services).

Why It Matters for Independent Artists

Your distributor controls how your music reaches listeners and how you get paid. A bad distributor can delay releases, fail to collect royalties from certain territories, or go out of business and strand your catalog.

Choose a distributor based on your release volume, revenue projections, and whether you need marketing support. For a detailed comparison of the top three DIY distributors, read our DistroKid vs TuneCore vs CD Baby guide. For a broader overview, see our Music Distribution Services Compared article.

For the full breakdown of how digital distributors operate, see our dedicated Digital Distributor glossary entry.

Related Terms

• Digital Distributor
• Digital Service Provider
• ISRC
• Record Label
• Master Recording