Labels vs Distribution: The Lines Are Blurring [Jay Gilbert]

Learn the difference between labels and distribution and how those lines are blurring as each shifts focus and adds or subtracts services to better compete for talent.

In this post and on this week’s Your Morning Coffee podcast with co-host Mike Etchart, Jay Gilbert explores the phenomenon. He breaks down the differences as only a former label exec turned indie music marketing maven can.

by Jay Gilbert of Label Logic and the Your Morning Coffee Newsletter and Podcast

People often refer to “The Major Labels” when they mean “Major Label Groups” or “Major Label Distributors.”

Examples of Major Label Groups and their (“Indie”) Distribution counterparts include: Universal / Virgin, Sony / The Orchard and Warner / ADA. Label examples: Atlantic, Sub Pop, New West, Nonesuch etc.

LABELS and DISTRIBUTORS are frequently used interchangeably but they used to be completely different animals with very little overlap. Today, the lines continue to blur with their respective roles and responsibilities.

So let’s look at the historical differences.

Generally speaking, DISTRIBUTORS typically handled:

• Global digital distribution and monetization
• Physical and digital product release coordination
• Best practices and troubleshooting across DSPs and social platforms
• Surface insights and analytics on release performance
• Pitch to DSPs for playlists and marketing programs
• Content ID and channel optimization on YouTube
• Social media verifications
• Rights management
• Pseudo videos (cover image + audio bed)

Generally speaking, LABELS typically handled:

• Release strategy / marketing plan
• Radio
• Publicity
• Sync licensing
• Photography / Creative
• Placing Advertising
• Full digital marketing strategy
• Online assets
• Music videos / lyric videos
• Events (except in-stores)

As Elias Leight from Billboard pointed out last week, “Frontline major label deals typically come with budgets — for recording, marketing and more — along with access to teams of people who can theoretically help artists find new songwriting partners, polish their TikTok clips and find money to support a tour. Since the label invests resources and services in the artists, it takes a significant chunk of the money that they earn, as well as rights to the songs they make.

Distribution deals are often the polar opposite. They typically come with far less money up front, few, if any, services, and significantly shorter terms. Since the company offering the deal doesn’t commit much, it doesn’t take much.