Information found on HowStuffWorks : Introduction to How Music Distributors Work

Dannenfeldt, D. (n.d.). How music distributors work. Retrieved November 24, 2014, from 

HowStuffWorks

   

website: http://entertainment.howstuffworks.com/music-distributor2.htm

HowStuffWorks is a website that can explain how, pretty much, everything works. HowStuffWorks compiles collected information from reliable sources and puts it in one place. This site can explain stuff about subjects from adventure all the way to technology. There is a large section focused primarily on technology, and the information provided within this blog comes from the sub-section ‘Music.’ The particular article being focused on is one that goes into the different types of distribution and the process of distribution.

Important Quotes:

“A music distributor links a record label or independent musical group to consumers.”

** Basically, a music distributor is just one step of the line to get the music out to the listeners. It also travels through a record label before getting to the hands of a consumer.

“The goal is to sell recordings and to increase the group's visibility and popularity by convincing stores to stock and promote its recordings.”

** Music is not only produced to entertain, but it is also produced to make money and gain popularity so that again, more money can be made.

“One way to think of a music distributor is as a wholesaler. That's because the distributor buys CDs from a record label or the band itself, either directly with a purchase order or on consignment, and then sells them to retailers, who offer the CDs to consumers.”

** The music distributor sells to retailers like F.Y.E and Best Buy on a daily basis.

Music distribution is the process of getting the music from the hands of the distributors to the hands of the consumers. Music is distributed through multiple outlets; retailers, such as F.Y.E and Best Buy, and also through digital sources such as iTunes and Amazon Music Store. A music distributor connects a record label to independent music groups, and furthermore, to consumers. If the record label chooses to sign the group, then they are in charge of overseeing the recording sessions, marketing, promotion, and distribution of the CD’s to retail stores. Essentially, if a music distributor goes through a record label, they are handing off a majority of their work to another party.

Music distributors are also in charge of promotion of the products created by the record labels. Promotion incorporates all, but not limited to, displays within a store to attract consumers, media advertising (such as radio promotion), and creating in-store listening stations to give people a preview of what they would be purchasing. 

The distributors have sales reps who work to build strong relationships with the chains and independent stores selling their products. The stores buy with a purchase order. This means that they only pay the distributors for the CD’s when they are sold. 

 Lastly, Music distributors are characterized in six different ways:

1. Major label vs. independent- Some examples of major record labels are: Sony/BMG Distribution, Capitol/EMI Distribution (Time Warner), and WEA Distribution (Warner Music Group). Independent companies can be national or regional. The largest one is Curb Distribution.
2. Sub-distributors- Between large distributors and retailers are sub-distributors. They are either one-stops who sell from a number of different distributors, or rack-jobbers who actually own and run the department within a larger department or multipurpose store.
3. International, National, and Regional- Major distributors operate on a national basis, while area distributors are not as large and they focus on a specific region of the US. Then, self-explanatory, international distributors handle one or more oversea markets.
4. Online, Internet, or Digital Distributors- These distributors work to supply digital companies such as iTunes, YouTube, Rhapsody, and other web stores. Sometimes, these distributors also offer physical CD’s.
5. Niche- These are distributors that focus and specialize on a specific type of music.
6. Printed or Sheet Music- These type of distributors only account for a small share of the market. However, some distributors are actually publishers to sell musical scores, band music, pop songs, and other “on paper” works.

Stay tuned for my next blog post where I will talk extensively about the marketing aspects of music!