Digital Distribution Revolution
What is Music Distribution?
Music distribution is the process of delivering music from an artist to an outlet, making it available to the public for purchase and listening. Whether the outlet is a physical store or a digital music retailer, the core function remains the same.
Historically, music distribution has predominantly been physical, beginning with sheet music in the 18th century, followed by records, cassettes, and CDs. The process involved music moving from creators to shops where consumers could purchase it.
Traditional Music Distribution:
- Physical Sales: Distribution was done through physical media such as vinyl records, cassette tapes, and CDs.
- Distribution Companies: Acted as middlemen between the artist or record label and the stores. They signed deals with record labels or artists, then sold the music to shops.
- Manufacturing and Distribution (M&D) Deals: Some distributors offered these deals where they would also handle the manufacturing of physical media.
Revenue Flow: Distributors took a cut of the income from each unit sold, paying the label the remaining balance, who then paid the songwriter through mechanical royalties.
Digital Distribution:
In recent years, digital distribution has revolutionised the music industry, shifting from physical to digital formats. By 2015, digital sales had surpassed physical sales.
Digital Streaming Platforms:
Streaming and digital platforms have become the new record shops. The goal of digital distribution is to get music on as many digital platforms and stores as possible. Here’s how it works:
- Accessibility: Artists can reach a global audience quickly and efficiently.
- Speed: What once took weeks or months of shipping and manufacturing is now possible with a few clicks.
- Rights Management: Digital distribution helps keep track of all music rights.
- Revenue: Artists receive royalties based on streams, downloads, and purchases.
- Data and Analytics: Platforms provide valuable insights to help plan future careers.
Latest Trends and Developments in Digital Distribution
- Emergence of AI and Machine Learning: AI is being used to analyse listener preferences, helping artists and labels tailor marketing strategies.
- Blockchain Technology: Ensures transparent and secure transactions, particularly in managing rights and royalties.
- NFTs (Non-Fungible Tokens): Artists are exploring NFTs to sell unique digital assets, creating new revenue streams.
- Direct-to-Fan Models: Platforms like Bandcamp allow artists to sell directly to fans, keeping a higher percentage of sales.
- Social Media Integration: Music is being distributed through social media platforms like TikTok and Instagram, offering new promotional avenues.
- Sync Licensing: Digital distribution services are increasingly facilitating sync licensing opportunities for TV, films, and ads.
Strengths of Digital Distribution
- Global Reach: Ability to reach a wider audience across the globe.
- Cost-Effective: Eliminates the need for physical manufacturing and shipping.
- Speed: Instant distribution and availability of music.
- Data Insights: Access to detailed analytics on listeners and streams.
- Flexible Monetization: Various revenue streams including streaming, downloads, and sync licensing.
Weaknesses of Digital Distribution
- Revenue Challenges: Streaming royalties are often lower than physical sales, making it harder for some artists to earn a sustainable income.
- Market Saturation: With the ease of digital distribution, the market is flooded with content, making it challenging for artists to stand out.
- Dependence on Platforms: Artists are reliant on the policies and algorithms of streaming platforms, which can change unpredictably.
- Piracy: Digital content is more susceptible to unauthorised distribution.
Recommendations for Independent Artists
- Research Distributors: Understand the fees, services, and conditions of different distributors. Look for transparent pricing and avoid hidden fees.
- Leverage Social Media: Use platforms like TikTok, Instagram, and YouTube to promote your music and engage with fans.
- Utilise Direct-to-Fan Platforms: Consider using Bandcamp or similar services to sell music directly to fans.
- Focus on Metadata: Ensure all music files have correct metadata for tracking and royalty collection.
- Engage with Fans: Build a strong fanbase through consistent engagement and communication.
- Stay Informed: Keep up with the latest trends and technologies in music distribution to leverage new opportunities.
- Register Your Music: Make sure your music is registered with PROs and neighbouring rights organisations to collect all possible royalties.
- Explore Sync Opportunities: Look for opportunities to have your music placed in TV, films, and advertisements.
- Monitor Analytics: Use data and analytics to understand your audience and tailor your marketing strategies accordingly.
- Diversify Revenue Streams: Don’t rely solely on streaming; explore merchandise, live performances, and sync licensing.
About Music Rights Management India
MRM India (previously Joshua Inc) was created to help music artists receive hassle-free royalties for their work. They assist with registering work, amending existing work in PRO databases, managing cue sheets, and tracking royalties.