CLAUSES TO LOOK OUT FOR IN A DISTRIBUTION DEAL

 

A distribution deal is a contract between an artist and a music distribution agency/company.

In such a contract, the distribution agency agrees to distribute the artist’s music on digital platforms such as Spotify, iTunes, Tidal, etc, for a fee. The fee could be paid annually (distrokid for instance) or derived from royalties depending on the nature of the contract. 

The existence of this middleman (the distribution company) makes it easier for the artist to push their music to a  variety of audiences. In spite of this advantage, it is very important to carry out proper research before signing any contract with a distribution agency. 

There are certain clauses one should look out for in distribution contracts, they include;

  1. Duration of Contract: It is necessary for the term of the contract to be specified.           This means that the date the contract is to commence and the date it is to expire must be spelt out. This makes for an absence of ambiguity that could land an artist in a brutal contract. 
  2. Nature of the contract: A distribution agreement could be exclusive or non exclusive. 

In an exclusive agreement, the distributor gains the exclusive right to be the sole/only distributor of an artist’s music whereas a non-exclusive agreement on the other hand is the exact opposite. Under such agreement, the distributor may be employed alongside other distributors to distribute an artist’s music. To avoid the restrictions that accompany an exclusive agreement, it is necessary to read the distribution contract thoroughly before signing,

  1. Grant of rights: Before signing a distribution deal, it is necessary to make sure that you are not signing away the bulk of your copyright. Any provision for an exclusive license or right to distribute placed by the distribution company in a distribution contract is a massive red flag. A major concern of any artist should be the retention of adequate and exclusive control over their work.
  2. Revenue Split: As an artist, your financial investment in your work is meant to yield bountiful results. Everything goes to waste if you end up signing an unfavorable contract. Some distribution companies request high percentages and service fees before paying out royalties. When the bulk of the royalty is spent on such bills, you're left with little to nothing.  It is therefore necessary to do your part by properly scrutinizing the payment and accounting terms under a distribution contract. 

 

The above clauses are the vital parts of any contract and ignorance of any of them could be disastrous in terms of finance and control over one’s work. These distribution agencies are looking out for their pockets and so should you.