Music Licensing and Distribution

In this article, we will discuss the difference between music licensing and distribution.

W

What Is Licencing?

hat Is Licensing?

When another company, usually a record label or a distributor, buys the rights to an album from you, this is known as licensing. They pay you a certain amount and then assume responsibility for functioning as the album’s label in the territory for which they licensed the album. Let’s imagine you’re a record label situated in the United Kingdom with an album that you’d like to release in France. The album is then licensed to a French label.

They now have the right to market the album in France through their label. They are in charge of the album’s production, promotion, and distribution in their own nation. If they make a lot of money selling it, they keep all of the profits; you don’t make any money beyond your licensing cost.

If they lose money on the record, that’s their loss as well; regardless of the CD’s performance or sales, you keep your licensing fee.

What Is Distribution?

The term “distribution” refers to the process of getting your albums into stores. You only make money on what you sell with a distribution deal, and your label is in charge of production and promotion. You get to keep everything if you make a lot of money. However, if you lose a lot of money on the record, you are solely responsible for the losses. This entails collecting music from the artist and delivering it to the customer. This can be accomplished physically, digitally, or through a combination of the two. The distribution of CDs, vinyl records, and cassette tapes is referred to as physical music distribution.

CDs and vinyl records are typically distributed to stores, while cassettes are usually sent directly to consumers. On the other hand, digital music distribution refers to the electronic distribution of music files. This can be accomplished via streaming services, digital downloads, or a combination of the two. The music industry relies heavily on music distribution. Artists would have a hard time getting their music out to the general public if it weren’t for it.