What Is Music Distribution ?
Distribution is the way that recorded music gets into the hands of consumers. Traditionally, distribution companies sign deals with record labels which give them the right to sell that label's products. The distributor takes a cut of income from each unit sold and then pays the label the remaining balance. Most distributors expect record labels to provide them with finished, ready-to-market products, but sometimes distributors offer "M&D" deals. M&D stands for manufacturing and distribution. With this setup, the distributor pays the manufacturing costs of an album up front and keeps all the income from album sales until that initial investment is paid off.