Label deal vs distribution deal: what artists actually sign
The difference between signing to a label and taking a distribution deal decides who owns your masters and who pays for the push.
Every week we speak to artists who are not sure what they are being offered. The two deals look similar on paper, but they work very differently.
A label deal
The label invests in the record: recording, mixing, video, marketing and promotion. In return it usually owns or co-owns the master and takes a larger share of income until its costs are recouped. You get money, a team and reach. You give up some ownership and control.
A distribution deal
You keep your master. The label delivers the release to Spotify, Apple Music, TikTok and every other platform, collects the income and passes on your share after a fixed percentage. Some distribution deals add playlist pitching, radio and promo on top.
Questions to ask before you sign
- Who owns the master, and for how long?
- What percentage do I receive, and is it before or after costs?
- Which costs are recoupable, and do I get a written statement?
- How long is the term, and how do I exit?
At Melonade Music we offer both, and we put every split in writing before a release goes live.
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