Core Distribution Terms
Aggregator. A company that collects music from multiple artists/labels and delivers it to streaming platforms in bulk. Often used interchangeably with "distributor," though technically aggregators are the delivery mechanism while distributors may offer additional services.
Distributor. A service that delivers music to DSPs, collects royalties, and pays artists. Examples: DistroKid, TuneCore, CD Baby, AWAL. Some operate as pure aggregators; others provide marketing, sync licensing, and other services.
DSP (Digital Service Provider). A platform where consumers stream or purchase music. Spotify, Apple Music, Amazon Music, YouTube Music, Pandora, Tidal are all DSPs.
Digital distribution. The process of making music available on digital platforms - as opposed to physical distribution (CDs, vinyl). What most "distribution" references in 2025.
Physical distribution. Getting CDs, vinyl, and cassettes into retail stores. Handled by different companies than digital distribution, though some (like CD Baby) offer both.
Identification Codes
ISRC (International Standard Recording Code). 12-character code identifying a specific sound recording. Assigned per track, stays with that recording forever. Essential for royalty tracking.
UPC (Universal Product Code). 12-digit barcode identifying a release (album, EP, single) as a product. Used for chart tracking and retail. One UPC per release, not per track.
ISWC (International Standard Musical Work Code). Identifies the underlying composition (the song itself), not the recording. Used for publishing and performance royalties.
Royalty Types
Streaming royalties. Payments generated when music is streamed on-demand platforms. Paid through your distributor. Covers the sound recording, not the composition.
Mechanical royalties. Payments to songwriters when compositions are reproduced - including each stream, download, or physical copy. Collected by the MLC (US) or publishing administrators.
Performance royalties. Payments when music is publicly performed: radio, TV, live venues, retail stores. Collected by PROs (ASCAP, BMI, SESAC).
Neighboring rights. Rights belonging to performers and recording owners (distinct from songwriters). In the US, SoundExchange collects these for digital radio.
Sync royalties. Fees for using music in visual media: film, TV, ads, games. Negotiated individually, not collected by societies.
Collection Organizations
PRO (Performing Rights Organization). Collects and distributes performance royalties to songwriters and publishers. US examples: ASCAP, BMI, SESAC.
MLC (Mechanical Licensing Collective). US organization that collects and distributes mechanical royalties from streaming services to songwriters.
SoundExchange. US organization collecting digital performance royalties (neighboring rights) from non-interactive services like Pandora and SiriusXM. Pays both performers and recording owners.
CMO (Collective Management Organization). Generic term for any organization that manages rights and collects royalties on behalf of creators. PROs, the MLC, and SoundExchange are all CMOs.
Rights and Ownership
Master rights. Ownership of the sound recording itself - the specific performance that was recorded. Typically held by the artist, label, or whoever funded the recording.
Publishing rights. Ownership of the underlying composition - the melody and lyrics. Held by the songwriter(s) or their publisher.
Rights holder. Any party with ownership stake in a recording or composition. Multiple rights holders can share a single work.
Financial Terms
Royalty statement. Document showing your earnings by track, platform, and territory. Issued by your distributor monthly or quarterly.
Payout threshold. Minimum earnings required before your distributor sends payment. Typically $10-50.
Commission. Percentage taken by a distributor or service from your royalties. Ranges from 0% (subscription services) to 15% (AWAL, RouteNote Free).
Advance. Upfront payment against future royalties. Common in label deals; some distributors (AWAL, Stem) offer them to qualifying artists.
Recoupment. The process of a label or investor recovering their advance from your royalties before you receive additional payments.
Other Essential Terms
Catalog. Your complete collection of released music. "Managing your catalog" means keeping all releases properly distributed and tracked.
Back catalog. Older releases, as opposed to new/active releases. Still generates streaming revenue but typically at lower rates than new music.
Editorial playlist. Playlist curated by platform staff (as opposed to algorithmic or user-generated). Placement is the most valuable form of platform promotion.
Playlist pitching. Submitting music for consideration to playlist curators, either through official channels (Spotify for Artists) or direct outreach.
Release radar / Discover Weekly. Algorithmic playlists on Spotify that surface new and relevant music to individual listeners based on their behavior.
This glossary covers the terms you'll encounter most frequently. When in doubt, search specifically for how a term applies in your context - many have nuances that vary by platform or territory.