Four words get mixed up all the time in contracts and conversations: artist, label, distributor, publisher. Someone says "I have a label" when they are really using a distributor. Someone else says "I work with a publisher" when they mean a label. Knowing who does what in music helps you when you sign anything, and it helps you understand where your money actually comes from.
Two products, two chains
Every released song is really two things. The first is the sound recording, also called the master: one specific performance, one specific recording. The second is the composition: the melody and the lyrics, no matter who sings them. Each has its own owners, its own participants and its own route for money. Whenever you try to place a role, ask one question: does this person work with the recording or with the composition?
Who does what: the roles one by one
Artist
The artist performs the song and often creates it too. The same person can be singer, lyricist, composer and producer at once. In that case they take part in both chains: as performer on the recording, and as writer on the composition.
If you made the recording with your own money and your own means, you usually own it. If you wrote the song with other people, the composition is shared between the co-writers. Agree on those shares before the release, not after the first payment arrives.
Label
A label works on the recording side. In the classic model it invests in recording, videos and promotion, and sometimes pays the artist an advance. In return it owns the recording, or licenses it for a set period, and takes a large share of the master income.
A label also plans releases, pitches them to media and playlist editors, and builds a team. Labels come in all sizes: major companies, small independents, and artists who simply put their own name on the label line. In that last case you are the label: investor, manager and decision maker in one person.
Distributor
A distributor delivers the recording and its metadata to platforms, collects master income from them and passes it on to you with reports. Under a distribution agreement the distributor does not become the owner of your music. CULT, for example, is a distributor: the rights stay with the artist, and CULT reviews the release and sends it to platforms through its distribution partners.
Depending on the distributor and the plan there can be extra services, such as YouTube Content ID or pitching to editorial playlists. The core job stays the same: deliver, collect, report.
Publisher
A music publisher works on the composition side. It registers your songs with collecting societies around the world, collects songwriter royalties, and offers your songs for films, adverts and other artists. In return it takes a share of the publishing income.
A collecting society is a separate body. It collects payment from radio, television, venues and other users for the public performance of compositions, and distributes it to registered writers and publishers. You can register with a society as a writer without having a publisher.
Other roles in short
- Manager. Guides the career at the level of strategy, joins negotiations, and is usually paid a percentage of income.
- Booking agent. Finds concerts and shows and negotiates the terms.
- Producer. Creates the recording, and sometimes receives a share of master income on top of a fee.
How the money flows, in general
Simplified, there are two routes:
- Recording. Listeners and advertisers pay the platform, and the platform sends the master share to the distributor or the label. If you have a label, you get your share from the label under your contract. If you do not, it comes to you directly from the distributor.
- Composition. Platforms, radio and venues pay the songwriting share to collecting societies and other rights organisations. From there it goes to the publisher and then to the writer. Without a publisher, a writer registered with a society receives their share directly.
The percentages depend on the contract, the country and the platform. That is why you should see exact numbers in writing in every agreement.
Where an independent artist fits on this map
An independent artist is usually artist and label at the same time. You use a distributor for the recording, and on the composition side you register yourself as a writer with a society. It is the simplest setup and the one where you keep the most control.
A made-up example: Lena Moor records her songs at home, releases them through a distributor and is registered as a writer with her local society. One day a label offers her a deal. Before signing, she asks a few questions:
- Who will own the recordings, and for how long?
- Which countries and which rights does the deal cover?
- What percentage of income stays with me, and which costs are recouped from the advance?
- When and in what form will I receive reports?
If you cannot get clear answers to questions like these, do not rush to sign.