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In just a few years, online distributors have become key players in the music industry and are now essential for artists who are developing their careers.  

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Why are digital distributors key players in the music industry?  

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Because online distributors make your musical works available on Digital Service Providers (DSPs) such as Spotify, Apple Music, Deezer, Amazon Music or Tidal. Your online distributor plays the role of an agent towards these players, who are significant sources of visibility and income. This post will cover music rights collection by online distributors and the types of rights they share with you.

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As already mentioned in another post, a track generates two different kinds of music royalties: copyright royalties and master royalties. Your online distributor only collects master royalties. Therefore, if you’re an independent creator responsible for performing, producing, and writing your songs, you might be missing out on a revenue stream: copyright royalties.

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What is a music distributor?

A music distributor is a company that makes your musical works available on multiple music-streaming platforms such as Spotify, Amazon, Deezer and Apple Music.

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Each distributor signs partnerships with streaming services; their goal is to have the catalogue they represent accessible on as many platforms as possible. Today, the most important online music distributors are DistroKid, TuneCore, CD Baby, Spinnup and Amuse.

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They all allow you to have your music distributed on the main digital platforms. They provide the same basic service: music distribution. When analyzing their service offerings, you’ll notice that the most important differences are:

• The pricing model they apply  

• The number of streaming services on which they can distribute your music

• The additional services they might offer

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Every music distributor has different fee policies. Some of them apply annual subscription fees, while others have decided to apply fees for each submitted track or album. You’ll even find some that are free to use and only take a cut on your earnings (part of your master royalties).

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Understanding the different business models of these main distributors is crucial to figuring out which best fits your current situation.

A music distributor is a company that makes your music available on multiple music streaming platforms. They act as your agent, procuring you this source of exposure and revenues. Today, the most important online music distributors are DistroKid, TuneCore, CD Baby, Spinnup and Amuse.

What types of royalties does my distributor collect for me?

As already mentioned, musical works comprise two different kinds of rights: copyright and master rights.

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Copyright are the rights of the people who have written a song (the score and the lyrics). This can include one or several songwriters for each track. It’s also the type of rights linked to publishers.

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Master rights protect and generate revenues for performers and producers for their contribution to the recording of the track (also called recording or master). Music productions are historically named phonograms. It is important to remember this term when seeking to understand legal documents, such as contracts.

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Distributors only collect and pay you on the master side. Depending on your configuration, you might have to share this revenue with a potential producer, or the performers featured on the recording.  

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Who collects and pays the copyrights generated on the music streaming platforms?

To protect and manage your copyright royalties, you can either register with an Independent Management Entity, such as Bridger, or a Collective Management Organization (SABAM, SACEM, GEMA, SIAE) or a Performance Rights Organization (BMI, ASCAP).

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Copyright cannot be collected by a distributor. This means that if you want to receive the full spectrum of your online royalties, you need to combine your digital distributor with a company like Bridger. Your distributor collects your master royalties, while an IME collects the missing copyright.

To collect royalties from your music on streaming platforms, you have to register with an Independent Management Entity, such as Bridger, a Collective Management Organization in Europe, or a Performance Rights Organization in the US.‍