How to choose a music distributor for your label

Choosing a distributor is one of the longest decisions a label makes: your catalog, your codes and your royalties will run through it for years. Price matters, but it is rarely what decides whether the relationship works. Here is what to check before you sign.

1. The deal, in plain numbers

Ask for the revenue share, any upfront or per-release fees, and what happens to revenue from your own deals if you have them. A clear deal states:

• the share you keep of net store revenue;
• whether there are setup, release or yearly fees;
• how long the agreement runs and how much notice either side gives to end it.

Make sure you keep ownership of your masters and your publishing. Distribution should be a licence to deliver, not a transfer of rights.

2. Where your music goes

Store count is easy to quote and hard to compare. Look instead at the stores that matter for your audience: the global services, the regional leaders in your markets, the social platforms (TikTok, Instagram and Facebook, YouTube Shorts) and, if you release them, music videos and Dolby Atmos. Ask how releases are delivered (DDEX is the standard) and how long stores usually take.

3. Rights beyond streaming

A good part of a catalog’s income comes from places a basic upload doesn’t reach: YouTube Content ID, Meta and TikTok rights, and publishing. Check who registers your catalog, who handles claims and disputes, and whether conflicts are resolved for you or left in your inbox.

4. Royalty reporting you can work with

You will read these statements every month. Ask for a sample. Look for track-level detail by store and country, matching by ISRC and UPC, clear handling of unmatched lines, and exports your accountant can use. If you pay artists, check how splits and recoupment are handled.

5. Getting paid

How often are you paid, in which currency, and by what method? Is there a minimum withdrawal? How are bank details protected? Typical store reporting runs two to three months behind, so ask how quickly revenue reaches your balance once the store reports it.

6. Tools for your team and your artists

A workspace your team actually uses saves hours every week. Check for roles and permissions, a review step before delivery, bulk upload, catalog migration, smart links and pre-saves, and analytics. If your artists want to see their numbers, ask whether they can sign in to a view of their own.

7. Switching without losing history

If you are moving from another distributor, ask how the move works. Your ISRCs and UPCs should travel with you, so streams, playlists and charts stay attached to the same recordings. A good migration plan moves releases in batches and checks for duplicates before anything goes live.

8. People you can reach

Ask who you talk to when something goes wrong: a named contact, live chat, or a ticket queue. Ask how fast they reply.

How HILLS answers these

HILLS is built for labels, distributors and catalog owners: delivery to 150+ stores, Content ID and social rights, monthly track-level statements, USD payouts, a workspace with roles for your team and sign-ins for your artists, and migration that keeps your codes. See distribution for record labels, compare plans, or apply.