Record Distribution
Once you have a recorded product, either self funded or through a recording agreement, you will enter the exciting world of 'getting it out there' - the next step to a successful product.

You need to consider how to distribute your record, or who will distribute it on your behalf. This can be "physical" or "digital".

If you're signed to a major or large label, the chances are that your recording agreement may deal with aspects of the release and distribution of completed records. In some cases, it may not, in which case you either need to address that in your recording agreement, or look at the other options to get it out there, particularly if you're self funded or have a non-label type funder.

When it comes to record distribution and/or licensing, there are several possibilities to consider.

Pressing and Distribution Deals
In a pressing and distribution or 'P + D' deal, you will already have a completed master, but need the actual records to be made and distributed (but not necessarily promoted). Your distributor may or may not be a record company, but if they are, you will use them for their distribution network in getting your records into the places they need to be, but not so much their ability to promote/market.

In a P + D deal, you have much greater control over the way your records are manufactured and released. It also means you will receive a greater portion of the income generated from the sale of your records. However, you should be aware of the following:

• You are totally responsible for funding the recording; includes the recording process, the costs of manufacturing the records and any taxes. In other words, you'll need the cash yourself.
• You'll also be responsible for artwork, advertising and any other promotional materials.

If you decide to go down the P + D route, find out as much as you can about your distributor. You can look up distributors and the labels they distribute in the Australasian Music Industry Directory or TMN's "Black Book". See if you can work out what shops etc they will be distributing you into. You are essentially getting the right to be included within their existing distribution channels - but they may not focus all of their energy on your particular record!

You should also look at the distributor's trading terms that it has with retailers, and ask to be kept informed of any changes to those terms. Carefully check the calculation of sales income too, which will often include deductions for manufacturing, packaging or labelling. You may also be agreeing to the distributor taking an additional percentage of sales for their hard work.

Master Licensing Deals
A master licence deal is step above a P + D deal. It is an agreement under which the owner of copyright in a master recording licenses others to use the master and exploit that copyright. It can be either an artist or independent label who owns the master recording (and keeps the copyright) and a major or other label who receives the licence (or right to use the copyright). Like Song Licensing, master licences grant specific rights in relation to the master recording. They can often relate to specific countries too.

Its worth having an understanding of some of the main points of a master licence agreement:

• Generally, the rights licensed will be to make copies of the master recording and sell, promote and distribute copies to the public, within a certain territory or timeframe.
• Clauses should deal with matters like who controls the record packaging, who will pay for artwork and manufacturing, and in what form records are to be manufactured.
• Licences are usually for a term of up to three years; ideally as short you can manage, but still make it worthwhile to do.
• The licensee should be required to make reasonable efforts to promote the record.
• Royalties should be dealt with, similar to Publishing or Recording Agreements.

 
Label Deals
A label is the distinctive name, logo or trademark under which a company sells records. Record companies have many different labels, to signify a different style of music. If you want to find out the owner of a label, you can look at the ARIA website: www.aria.com.au

Record companies in Australia are often divided into 'majors' and 'independents'. Majors are the large multinational corporations, who have subsidiary companies in most music markets. Think Sony, Warner, EMI and Universal. There are only a handful left.

Independents are labels not owned by large multinationals, and are, more or less, 'the rest', although many so-called 'indie' labels are in fact owned by a major label. They certainly are not the size of, nor do they have the financial clout of the majors, but they can often invest in closer relationships with artists, and are less constrained by purely financial considerations. Liberation, Shock et al.

Nearly all Independents use Majors for record distribution. Label deals are often arranged so that the artist signs with an Independent, and operates under the Independent's label, but are backed and funded by a Major, who manufactures the records from the masters delivered by the Independent. That arrangement is really between the two labels, but it is important for an artist signing with an Independent to be aware of, as it may affect what the Independent does. A major may in fact be calling the shots.

As an artist, you should try to find out as much as you can about the actual deal between any Independent label you might sign with and any Major label that it has a relationship with:

• Does the Indie have final say in what and how records are released? Or can the Major decide whether or not to release? Is there a release guarantee from the Major?
• The rights to the Major should not exceed any rights the Indie label has in the recording agreement with you. Check whether the Indie has 'approval rights' that match yours.
• Does the deal make it clear when funds are payable by the Major to the Indie (and you)?
• If the Major doesn't release within a certain time, does the Indie have the right to do so?

It is a good idea to try and find out as much as possible about the Major that your label is dealing with, understand their working relationship, and how it may ultimately affect you.

Record Distribution
Once you have a recorded product, either self funded or through a recording agreement, you will enter the exciting world of 'getting it out there' - the next step to a successful product.

You need to consider how to distribute your record, or who will distribute it on your behalf. This can be "physical" or "digital".

If you're signed to a major or large label, the chances are that your recording agreement may deal with aspects of the release and distribution of completed records. In some cases, it may not, in which case you either need to address that in your recording agreement, or look at the other options to get it out there, particularly if you're self funded or have a non-label type funder.

When it comes to record distribution and/or licensing, there are several possibilities to consider.

Pressing and Distribution Deals
In a pressing and distribution or 'P + D' deal, you will already have a completed master, but need the actual records to be made and distributed (but not necessarily promoted). Your distributor may or may not be a record company, but if they are, you will use them for their distribution network in getting your records into the places they need to be, but not so much their ability to promote/market.

In a P + D deal, you have much greater control over the way your records are manufactured and released. It also means you will receive a greater portion of the income generated from the sale of your records. However, you should be aware of the following:

• You are totally responsible for funding the recording; includes the recording process, the costs of manufacturing the records and any taxes. In other words, you'll need the cash yourself.
• You'll also be responsible for artwork, advertising and any other promotional materials.

If you decide to go down the P + D route, find out as much as you can about your distributor. You can look up distributors and the labels they distribute in the Australasian Music Industry Directory or TMN's "Black Book". See if you can work out what shops etc they will be distributing you into. You are essentially getting the right to be included within their existing distribution channels - but they may not focus all of their energy on your particular record!

You should also look at the distributor's trading terms that it has with retailers, and ask to be kept informed of any changes to those terms. Carefully check the calculation of sales income too, which will often include deductions for manufacturing, packaging or labelling. You may also be agreeing to the distributor taking an additional percentage of sales for their hard work.

Master Licensing Deals
A master licence deal is step above a P + D deal. It is an agreement under which the owner of copyright in a master recording licenses others to use the master and exploit that copyright. It can be either an artist or independent label who owns the master recording (and keeps the copyright) and a major or other label who receives the licence (or right to use the copyright). Like Song Licensing, master licences grant specific rights in relation to the master recording. They can often relate to specific countries too.

Its worth having an understanding of some of the main points of a master licence agreement:

• Generally, the rights licensed will be to make copies of the master recording and sell, promote and distribute copies to the public, within a certain territory or timeframe.
• Clauses should deal with matters like who controls the record packaging, who will pay for artwork and manufacturing, and in what form records are to be manufactured.
• Licences are usually for a term of up to three years; ideally as short you can manage, but still make it worthwhile to do.
• The licensee should be required to make reasonable efforts to promote the record.
• Royalties should be dealt with, similar to Publishing or Recording Agreements.

 
Label Deals
A label is the distinctive name, logo or trademark under which a company sells records. Record companies have many different labels, to signify a different style of music. If you want to find out the owner of a label, you can look at the ARIA website: www.aria.com.au

Record companies in Australia are often divided into 'majors' and 'independents'. Majors are the large multinational corporations, who have subsidiary companies in most music markets. Think Sony, Warner, EMI and Universal. There are only a handful left.

Independents are labels not owned by large multinationals, and are, more or less, 'the rest', although many so-called 'indie' labels are in fact owned by a major label. They certainly are not the size of, nor do they have the financial clout of the majors, but they can often invest in closer relationships with artists, and are less constrained by purely financial considerations. Liberation, Shock et al.

Nearly all Independents use Majors for record distribution. Label deals are often arranged so that the artist signs with an Independent, and operates under the Independent's label, but are backed and funded by a Major, who manufactures the records from the masters delivered by the Independent. That arrangement is really between the two labels, but it is important for an artist signing with an Independent to be aware of, as it may affect what the Independent does. A major may in fact be calling the shots.

As an artist, you should try to find out as much as you can about the actual deal between any Independent label you might sign with and any Major label that it has a relationship with:

• Does the Indie have final say in what and how records are released? Or can the Major decide whether or not to release? Is there a release guarantee from the Major?
• The rights to the Major should not exceed any rights the Indie label has in the recording agreement with you. Check whether the Indie has 'approval rights' that match yours.
• Does the deal make it clear when funds are payable by the Major to the Indie (and you)?
• If the Major doesn't release within a certain time, does the Indie have the right to do so?

It is a good idea to try and find out as much as possible about the Major that your label is dealing with, understand their working relationship, and how it may ultimately affect you.