DistroKid is a popular music distribution service that helps artists get their music on various streaming platforms such as Spotify, Apple Music, and Tidal. One of the most crucial aspects of music distribution is royalty collection. It is essential for artists to understand what kind of royalties DistroKid collects on their behalf.
DistroKid collects various types of royalties for artists, including mechanical royalties, performance royalties, and synchronization royalties. Mechanical royalties are generated whenever a song is downloaded or streamed, and DistroKid collects these royalties from streaming services and stores. Performance royalties are generated whenever a song is played in public, such as on the radio or in a live performance. DistroKid collects these royalties from performing rights organizations (PROs) such as ASCAP and BMI. Lastly, synchronization royalties are generated whenever a song is used in a TV show, movie, or commercial. DistroKid collects these royalties from sync licensing agencies.
Understanding Distrokid
Distrokid is a digital music distribution service that helps musicians put their music into online stores and streaming services such as iTunes, Spotify, Apple Music, YouTube Music, Amazon, Deezer, Tidal, and many more. Distrokid collects earnings and payments from these services and sends 100% of these earnings to artists, minus banking fees and applicable taxes.
When it comes to royalties, Distrokid collects mechanical royalties and performance royalties. Mechanical royalties are paid to the songwriter or publisher for the use of their composition. This includes any time a song is reproduced, such as when it is streamed, downloaded, or sold. Performance royalties, on the other hand, are paid to the owner of the sound recording for the use of their recording. This includes any time a song is played on the radio, in a public space, or on a streaming service.
Distrokid also offers a service called Splits, which allows artists to automatically split earnings with collaborators. This is useful for bands, duos, or any group of artists who want to split earnings evenly. Artists can also use Splits to pay collaborators a percentage of earnings based on their contribution to the song.
It’s important to note that Distrokid does not collect sync licensing royalties. Sync licensing royalties are paid when a song is used in a film, TV show, commercial, or other visual media. If you want to collect sync licensing royalties, you’ll need to sign up with a sync licensing agency or platform.
Distrokid collects mechanical royalties and performance royalties for artists and offers a service called Splits to help artists split earnings with collaborators. However, Distrokid does not collect sync licensing royalties.
Types of Royalties Collected by Distrokid
DistroKid is a music distribution service that helps independent artists get their music on popular streaming platforms like Spotify, Apple Music, and Amazon Music. The service allows artists to keep 100% of their earnings, and it does not take any percentage off the top of what stores send for their earnings. Here are the types of royalties collected by DistroKid:
Mechanical Royalties
Mechanical royalties are earned by songwriters and publishers when their music is reproduced and distributed. DistroKid collects mechanical royalties on behalf of its clients and pays them out directly. Mechanical royalties are paid by streaming services and stores to the publishers and songwriters, and DistroKid ensures that these royalties are collected and distributed accordingly.
Performance Royalties
Performance royalties are earned by songwriters and publishers when their music is played in public or broadcasted on radio, TV, or the internet. DistroKid collects performance royalties on behalf of its clients from performance rights organizations like ASCAP, BMI, and SESAC. These organizations collect performance royalties from venues, broadcasters, and streaming services, and DistroKid ensures that its clients receive their fair share of these royalties.
Synchronization Royalties
Synchronization royalties are earned by songwriters and publishers when their music is used in TV shows, movies, commercials, and video games. DistroKid helps its clients collect synchronization royalties by working with music supervisors, licensing agencies, and production companies. These royalties can be lucrative, and DistroKid ensures that its clients receive their fair share of these royalties.
DistroKid collects mechanical, performance, and synchronization royalties on behalf of its clients. By doing so, DistroKid helps independent artists get paid for their music and ensures that they receive their fair share of royalties.
How Distrokid Collects Royalties
DistroKid is a digital music distribution service that allows musicians to upload their music to various streaming services and stores. When users upload their music to DistroKid, the service collects royalties on their behalf.
DistroKid only collects reproduction royalties, which are a type of recording royalty. Recording royalties are the royalties generated by masters. A master refers to an actual audio recording of a song. DistroKid does not collect any publishing royalties, which are generated by compositions.
Earnings reports and payments are available to users as soon as DistroKid receives and processes earnings from streaming services and stores. Streaming services usually deliver these reports monthly, and they reflect sales from about 3 months ago. So, if someone streamed your song yesterday, royalties for it won’t show up in your DistroKid bank account until about 3 months later.
DistroKid keeps a percentage of the earnings collected on behalf of its users. The percentage varies depending on the type of release and the plan the user is on. For example, a user on the Musician Plus plan will keep 100% of their earnings for their first single, while a user on the Musician plan will keep 91% of their earnings for their first single.
In addition to collecting royalties, DistroKid also offers a referral program. Users can earn money by referring new users to the service. When a new user signs up using a referral link, both the referrer and the new user receive a discount on their next payment. Users can also earn money by participating in DistroKid’s “Teams” feature, which allows multiple users to collaborate on a release and split the earnings.
Distribution of Royalties by Distrokid
DistroKid is a popular music distribution service that allows artists to release their music on various streaming platforms like Spotify, Apple Music, and Tidal. When an artist releases their music through DistroKid, they are entitled to receive royalties for each stream or download of their music. DistroKid collects these royalties on behalf of the artist and distributes them to the artist’s account.
DistroKid offers two types of royalties to artists: mechanical royalties and performance royalties. Mechanical royalties are paid to songwriters and publishers for the use of their music on streaming platforms. Performance royalties are paid to artists and record labels for the use of their music on radio, TV, and live performances.
DistroKid collects mechanical royalties from streaming platforms like Spotify, Apple Music, and Tidal, and distributes them to songwriters and publishers. The amount of mechanical royalties paid to songwriters and publishers varies depending on the number of streams and downloads of their music. DistroKid takes a 10% commission on mechanical royalties collected.
DistroKid also collects performance royalties from various organizations like ASCAP, BMI, and SESAC, and distributes them to artists and record labels. The amount of performance royalties paid to artists and record labels varies depending on the number of radio plays, TV appearances, and live performances of their music. DistroKid takes a 0% commission on performance royalties collected.
DistroKid collects mechanical and performance royalties on behalf of artists and distributes them to their accounts. DistroKid takes a 10% commission on mechanical royalties collected and a 0% commission on performance royalties collected.
Comparison with Other Distribution Services
When it comes to music distribution, there are many options available. However, not all distribution services are created equal. Here’s a comparison of DistroKid with some of its competitors in terms of the royalties they collect:
| Distribution Service | Royalties Collected |
|---|---|
| DistroKid | 0% |
| CD Baby | 9% |
| TuneCore | 20% |
| Ditto Music | 0% |
| AWAL | 15% |
As you can see, DistroKid and Ditto Music are the only two services on this list that do not collect any royalties from your music sales. CD Baby, on the other hand, takes a 9% cut of your royalties, while TuneCore and AWAL collect 20% and 15%, respectively.
While these percentages may seem small, they can add up quickly. For example, if you sell 1,000 copies of your album on iTunes for $9.99 each, you would earn $6,993 with DistroKid, $6,090 with CD Baby, $5,592 with AWAL, and just $4,792 with TuneCore.
It’s important to keep in mind that while DistroKid doesn’t collect any royalties, they do charge an annual fee for their service. However, this fee is significantly lower than what some of their competitors charge.
if you’re looking for a distribution service that won’t take a cut of your royalties, DistroKid and Ditto Music are your best options.
Advantages of Using DistroKid for Royalty Collection
DistroKid is a popular music distributor that offers a range of services to independent artists. One of the key benefits of using DistroKid is its royalty collection system. Here are some advantages of using DistroKid for royalty collection:
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Ease of use: DistroKid makes it easy for artists to collect royalties from various sources. DistroKid collects royalties from digital stores like Spotify, Apple Music, and Google Play, and pays out earnings to artists on a regular basis.
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Transparent reporting: DistroKid provides detailed earnings reports that show how much money an artist has earned from each store or streaming service. This makes it easy for artists to track their earnings and make informed decisions about their music career.
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Fast payouts: DistroKid pays out earnings to artists as soon as they receive them from streaming services and stores. This means that artists can get paid faster than they would with other distributors.
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No hidden fees: DistroKid charges a flat fee for distribution, and does not take a percentage of an artist’s earnings. This means that artists can keep 100% of their earnings, and there are no hidden fees or charges.
DistroKid offers a simple and transparent royalty collection system that can help independent artists earn money from their music. With fast payouts, detailed earnings reports, and no hidden fees, DistroKid is a great choice for artists who want to take control of their music career.
Potential Drawbacks
While DistroKid offers many benefits for independent musicians, there are some potential drawbacks to consider before using their service.
No Physical Distribution
One major drawback of using DistroKid is that they do not offer physical distribution of music. This means that artists who want to sell their music on CDs or vinyl records will need to find another distribution service or handle physical distribution themselves. However, in today’s digital age, physical distribution is becoming less common, so this may not be a significant issue for many musicians.
Limited Customer Support
Another potential drawback of using DistroKid is their limited customer support. While they do offer email support, they do not have a phone number or live chat option. This can be frustrating for musicians who need help with an urgent issue or have questions that require immediate attention. However, DistroKid does have a comprehensive knowledge base and FAQ section that can help answer many common questions.
Royalty Collection
DistroKid collects royalties on behalf of their artists, but there have been some concerns about how they handle this process. Some musicians have reported issues with delayed or missing royalty payments, while others have questioned the accuracy of the royalty calculations. However, it’s important to note that DistroKid is not responsible for setting the royalty rates, which are determined by the streaming platforms themselves.
while there are some potential drawbacks to using DistroKid, their service can still be a valuable tool for independent musicians looking to distribute their music online.
Conclusion
DistroKid is a popular digital music distribution service that offers artists an easy and affordable way to get their music on major streaming platforms. While DistroKid does not collect performance royalties for songwriters and publishers, it does collect mechanical royalties on behalf of artists.
DistroKid also offers promotional tools and connection opportunities to help artists gain more exposure and grow their fanbase. Additionally, DistroKid does not take any ownership or intellectual property rights from artists, allowing them to keep 100% ownership of their music.
When it comes to getting paid, DistroKid provides earnings reports and payments as soon as they receive and process earnings from streaming services and stores. Streaming services usually deliver these reports monthly, and they reflect sales from about 3 months ago.
DistroKid is a great option for independent artists who want to distribute their music to a wide audience without breaking the bank. With its easy-to-use platform, promotional tools, and fair payment policies, DistroKid is definitely worth considering for any artist looking to take their music career to the next level.
