What is the best distribution deal for me?

It all depends on what type of distribution you are seeking.

There formerly were 6 major distributors called the "BIG 6", which consisted of the following:

SONY Music Group
BMG Music Group
MCA
Warner Music Group
EMI Group (Capitol Records)
Polygram Music Group

These six have now become four as follows:

SONY/BMG
Universal Music Group (MCA & Ploygram)
Warner Music Group
EMI Music Group

These distributors in turn manufacture, promote and market product for record labels in their distrbution network as explained below.i.e.A music distributor (Universal Music Group) links a record label (Roc A Fella Records) or independent musical group (Jeezy) to consumers. The record label (Roc A Fella Records) signs the group (Jeezy) and then oversees recording sessions, marketing, promotion and distribution of the group's (Jeezy) CDs to retail stores.

Major record distributors/labels usually have an in-house music distribution division or an ongoing relationship with an outside distributor, such as a "one stop", "wholesaler", "rackjobber", or "specialty store"(Source Interlink, Tower, Handleman, AEC One Stop, Virgin Megastores, IDN).A band without a major recording contract, like Devo in the mid-'70s, that had sold a large majority of units on their own, had garned a lot of "adds" on radio, had to find an independent music distributor (KOCH, TVT, BCD, Rock Bottom, Southern Music), to get its message and its music to its fans.

Now artists have an advantage over them with online distribution sources such as (CD Baby, Itunes, Amazon, ItsAboutMusic), but you have to be very careful with these sources and not walk into an "exclusivity deal".

With the independet distributors you more than likely will be responsible for manufacturing or even possibly promotions & marketing, usually, but not always.You can have a multiple set of scenarios when it comes to distribution, you just have to choose what is best for you and your career.If the major distributor is involved in manufacturing, promotions & marketing, they will be looking to be compensated. So you might sign a 50/50 deal, a p&d deal (pressing and distribution), an independent label deal (and have an enormous amount of sales on your own) so they will be more than willing to negotiate one of these deals with you.

HOWEVER:

You must ask yourself these questions...

If you are thinking of accepting a distribution deal, before signing the dotted line it is important to ask questions such as:

• Does the deal include any publicity or promotional advantages to the artist?
• Are there any payments I must make, statutory, collective or otherwise?
• What percentage of royalties will I receive, and how are payments handled?
• Can I be provided with an estimation of how profitable your distributive methods are?
• What are my rights in terminating the contract?
• Am I solely responsible for tax declarations on my net income?

Other things you must check before signing are the ‘exclusivity’ terms. These could greatly inhibit your freedom. Does a deal involve licensing your music digitally (via preferred online formats) or does the deal also include physical sales? Some are highly exclusive in nature whilst others give you rights to proceed with marketing your music via other channels.

Bear in mind that many reputable and authorised distributors, such as CDBaby for one, will not allow an artist to exploit other distribution channels, as the two parties run the risk of putting your music on the exact same sites. A hassle major retailers and distributors can do without, and an understandable clause too.

You must read the terms of an agreement in full. It is absolutely essential that you fully understand what is expected from you as well as what is being offered!