Define A Record Label Standard Distribution Deal?

[Borrowdale Barron]

How does a record label standard distribution deal work?

 

[Black Panther]

A standard distribution deal with a record label means that the record company agrees to finance the artist by making a provision of funds for CD manufacturing, online retail distribution (e.g Spotify, Apple Music, YouTube, Amazon Music, etc) merchandise and promotion.

The end result is that the artist will be paid royalty payments only after the record company has managed to recoup all the expenses incurred during the process of recording and promoting the project.

 

[Borrowdale Barron]

But why can't an artist just start their own music distribution company and bypass the need to sign distribution deals with other record labels?

 

[Black Panther]

But why can't an artist just start their own music distribution company and bypass the need to sign distribution deals with other record labels?

You have to know that most distribution deals might contain a promotion and marketing agreement. So yes you could start your own music distribution company but that doesn't mean it's going to be successful especially if you don't have money and the clout to negotiate promotional deals within the music industry.

It's so much politics involved in the music business. If you know what I mean.

 

[Borrowdale Barron]

So who distributes Cash Money and YMCMB music?

 

[Black Panther]

So who distributes Cash Money and YMCMB music?

Universal Music does that for them.