5. Label vs Distributor

Choosing your infrastructure

Many artists confuse these two because modern distributors now offer “label-like” services. Here is the distinction for 2026:

1. The Distributor (Service Provider)

Relationship: You pay them (either a flat fee like DistroKid or a small % like CD Baby).

Ownership: You keep 100% of your rights.

Responsibility: They provide the pipes, but you provide the marketing, the strategy, and the budget.

2. The Label (Partner)

Relationship: They pay you (an “Advance”) and take a large % of your earnings (usually 50–85%).

Ownership: They often own the Master for a set period or forever.

Value Add: They provide A&R, Global Marketing, Radio Promotion, and Funding.

When are they relevant? Use a Distributor when you want to stay independent and have the budget to market yourself. Use a Label when you have a hit but need “fuel for the fire” to scale globally.