Music Distribution Agreements
The key terms in any music distribution agreement: rights grants, revenue splits, takedown policies, and the red flags to check before you sign.
Your Distribution Agreement Is a Legal Contract
Most artists sign up for DistroKid or CD Baby without reading the terms of service. That's understandable, since the terms are long and written in legalese, but it means you may not know what you've agreed to until something goes wrong.
A music distribution agreement governs how your music gets to streaming platforms, who owns what, how you get paid, and what happens if you want to leave. Understanding the key terms across the major distributors helps you pick the right one and avoid surprises.
What Every Distribution Agreement Should Cover
Here are the terms every distribution agreement includes, and what you need to understand in each:
Rights Grant: You're granting the distributor a license to distribute your music. This should be non-exclusive, meaning you retain full ownership and can leave if you want. Be wary of any agreement that seems to claim ownership of your recordings.
Revenue Split: What percentage of your streaming revenue do you keep? The ideal is 100%, which DistroKid and TuneCore offer. CD Baby keeps 9%.
Payment Terms: How quickly do you get paid after earnings are generated? Most distributors pay monthly, but there can be a 30–60 day delay after the streaming platforms report earnings.
Takedown Policy: What happens to your music if you cancel your subscription or stop paying? DistroKid removes your music if you cancel without paying a takedown fee. CD Baby keeps your music up permanently (no annual fee). Understanding this matters for your catalog longevity.
Publishing Administration: Does the distributor collect publishing royalties (mechanical and performance royalties from streaming) in addition to master royalties? DistroKid offers this as an add-on. TuneCore Publishing is a separate service. CD Baby Pro includes it for an additional fee.
For current pricing and feature comparisons of DistroKid, TuneCore, and CD Baby, see Choosing a Music Distributor. This guide stays focused on what the agreements themselves say.
What to Watch Out For
Reversion: Make sure your agreement specifies that all rights revert to you immediately upon termination. You should be able to take your masters and move to another distributor at any time.
Royalty reporting transparency: Can you log in and see detailed royalty reports by platform, territory, and track? Good distributors provide clear dashboards.
Advance programs: Some distributors now offer royalty advances. These are fine if the terms are transparent, but read the recoupment terms carefully. They work like a mini-label deal.
The Bottom Line
No distribution agreement transfers ownership of your masters to the distributor. If one does, run. Your master recordings stay yours. The distributor is simply a logistics company getting your files to streaming platforms and passing revenue back to you.
Key Takeaways
- Distribution agreements are legal contracts — always read the key terms before signing up
- Your rights grant to the distributor should be non-exclusive so you can leave anytime
- DistroKid and TuneCore pay 100% of royalties; CD Baby keeps 9%
- Understand what happens to your music if you cancel — DistroKid removes it, CD Baby keeps it up
- None of these services should claim ownership of your master recordings
Glossary
- Non-Exclusive License
- A license that grants rights to one party without preventing the licensor from granting the same rights to others — the right arrangement for distribution.
- Royalty Advance
- An upfront payment from a distributor against future royalty earnings — must be recouped before the artist receives additional payments.
- Catalog
- The complete body of music an artist has released — all their singles, albums, and EPs combined.
- Publishing Administration
- A service that registers songs and collects mechanical and performance royalties from PROs and digital platforms worldwide.
- DSP (Digital Service Provider)
- A streaming platform or digital store — Spotify, Apple Music, Tidal, Amazon Music, and similar services.