Music Distribution Contracts

Music distribution contracts are legal documents which outline the rights, responsibilities, and duties of all parties in a music distribution agreement. Generally, bands who have already recorded an album seek out music distribution contracts in order to get their albums in stores. Under the terms of a music distribution contract, a record label agrees to sell music for an artist in return for a cut of the profits from sales. Distribution contracts may also include promotional or advertising duties that the label will fulfill in order to sell the record. Bands are usually required to pay record labels back for expenses incurred such as packaging, advertising, and production costs. Therefore, bands may not see profits from album sales for some time, as these profits go toward paying the balance due to the record company. The amount owed is generally less in music distribution contracts than it is in general recording contracts, as bands don't have to reimburse labels for studio time and recording costs.

Fast Facts

  • Over 800 million CDs are shipped to stores every year.
  • 6,188 albums were released in 2001, though only 50 sold more than a million copies.

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