Music Distribution for Labels: What Features Record Labels Should Consider

Releasing music is among the primary responsibilities of record labels. Just like independent artists, labels work with music distribution services to get their signed artists’ music onto all relevant streaming platforms. At the same time, they have to navigate additional complexities and nuances, both when releasing and when choosing a distribution service.

Are you a label looking for a (new) music distributor? Let’s look into the most essential features of music distribution for labels!

At their core, labels exist to build and promote artists. Whether major or independent, a label is not a label without a compelling roster of signed musicians. For this reason, they should choose a distributor that understands the key business operations of record labels.

A plan designed for labels should include options to create and manage multiple artist profiles in one place without any major limitations. This allows for centralized artist management, reduces costs, and avoids the clutter of separate accounts. Such plans also help labels maintain better control over their branding and release schedules.

Depending on its size, running and maintaining a label can come with significant costs. Expenses typically include artist advances, recording and production costs, marketing and promotion, staff and legal fees, and, of course, distribution fees.

Record labels can benefit greatly from a plan that offers unlimited music releases. This model is more cost-effective than pay-per-release plans for labels with a high or consistent volume of releases across multiple artist profiles.

Moreover, labels should check if their potential plan of choice includes renewal fees. Some distributors charge annually for each release or impose yearly fees for catalog maintenance, which can lead to high expenses over time. A better option would be to choose a plan that does not charge renewal fees.

Another important factor is choosing a distributor that provides access to the streaming platforms and stores relevant to your target audience. This includes geographic reach, as some distributors can get your music on platforms that are popular in specific regions. For example, the streaming platform Anghami is particularly popular in the Middle East and North Africa, with 30 million users as of 2017.

Moreover, some distributors are better suited for specific genres than others. For instance, not all distribution services offer access to Apple Music Classical or specialized platforms like Beatport and Traxsource for electronic music. If your label focuses on a particular genre with dedicated platforms, look for distributors and plans that prioritize those outlets.

Labels working with multiple artists and collaborators need to do more money management than a single independent artist uploading their own music. For this reason, labels can benefit significantly from working with a distributor that offers automatic revenue-splitting tools. Revenue splits allow them to allocate royalties among collaborators without manual calculations or payouts, saving time and ensuring transparency.

It is also important for labels to find a distributor that takes a reasonable commission and, if possible, does not impose excessive withholding taxes. If your label’s goal is to maximize earnings, selecting the right distributor to handle your revenue is crucial.

Ideally, the distributor should also offer flexible payout schedules so artists do not have to wait for a quarterly payout. This would also allow you to access funds regularly to reinvest in promotions or new releases.

Many distributors provide extra tools beyond music publishing, which can be more cost-effective than subscribing to each tool individually.

This can include analytics tools that give labels access to detailed music statistics, such as streams, geographic reach, and audience demographics. Some distribution services also offer built-in marketing tools, including music smart links, pre-save pages, and other promotional resources. Additionally, labels can benefit from distributors offering editorial playlist pitching services to expose more potential fans to their artists.

Finally, due to the complexity of their operations, labels can benefit from reliable customer support. Distributors that do not provide assistance may not be the best choice for your label, especially when you are still new to the industry.

When searching for a music distributor, assess your label’s specific needs. This includes how many artists are signed to your label, the volume of releases, the target audience, and the platforms you want to distribute to.

Look for a distributor that offers flexibility in pricing and release options, especially if you plan to release music frequently. Consider their customer support and the tools they provide for managing royalties, tracking performance, and promoting releases.

Finally, check for hidden fees or long-term commitments to make sure the distributor aligns with your label’s financial resources, goals, and strategy.