“Distributor” and “label” get mixed up a lot, but they’re very different deals. Knowing the difference can be worth a lot of money over your career.
What a music distributor does
A distributor delivers your music to streaming services and stores, collects the royalties, and pays you. Traditionally that’s where the job ended. Today many distributors also offer playlist pitching, YouTube Content ID, royalty splits, and marketing help.
The key point: with a distributor, you usually keep ownership of your masters and control your career. You decide what to release and when.
What a record label does
A record label invests in your career: recording budgets, marketing, radio, publicity, and sometimes advances. In exchange, a label typically owns or controls your masters for a period of time (sometimes forever) and keeps a larger share of the income until its investment is recouped.
Side by side
| Distributor | Record label | |
|---|---|---|
| Who owns the masters | Usually you | Usually the label |
| Your share of income | Most of it | Smaller share, especially until recoupment |
| Creative control | Yours | Shared or the label’s |
| Upfront money | Rare | Often (as an advance) |
| Marketing muscle | Varies by distributor | Usually more |
So which is right for you?
- Building your audience and want to stay independent? A distributor with a real support team gives you reach and control.
- Need major funding for a big push and willing to trade ownership? A label deal might make sense. Have a music attorney review any contract.
Many artists use a distributor to build streams and leverage first. Then, if a label comes calling, they negotiate from a stronger position, or decide they don’t need one.
Where Asset Distro fits
Asset Distro sits between DIY uploaders and traditional labels: global distribution, rights management, and royalty accounting with a team behind you, while you keep your masters. See how it works or read about our services for independent labels.
This article is general information, not legal advice.