The Independent Artist’s Guide to Releasing Music on Digital Service Providers & Realizing Streaming Royalties
This guide is for independent musical artists who want to release or who currently have music on Digital Service Providers (“DSP”)–online platforms that distribute music for streams or downloads–and want some background on: (1) the process and copyright considerations, and/or (2) how to actually get streaming royalties.
Please note that this guide is not comprehensive. It does not include all possible considerations and/or instructions. However, it should give you a good starting point and framework from which you can build if you are an independent artist trying to navigate music royalties.
Process & Copyright Considerations
When a person writes and records a song, two copyrights exist. One for the composition. One for the sound recording. For each of these, the person who wrote and recorded the song (let’s assume that they did it all on their own and used no samples) owns a “bundle of rights” associated with that copyright. This includes things like the right to:
Copy the song;
Create derivative works from the song;
Distribute the song; and
Perform the song.(1)
Next, to get music on a DSP, such as iTunes, Tidal, Deezer, or Spotify, artists must use a distribution service. The big DSPs do not accept direct uploads.
Using a distributor to get your music on DSPs
Independent artists–those that are not signed to a music label–can use distribution services such as DistroKid or CD Baby. I focus on these two because I’ve reviewed their terms and licensing agreements but please know that there are several distribution options–just search for “music distribution companies.”
When you use DistroKid or CD Baby you enter a licensing agreement with them where you, the artist, still own the copyrights associated with your song and you are licensing the distributor the right to copy, create derivative works from, distribute, and perform your song.(2) The licensing agreement also provide that the distributor has the right to sublicense these rights to the DSPs.
In plain language, when you use a distributor like DistroKid or CD Baby, you still own all the rights to your music and are licensing your rights to them so that they can function as distributors.
I’ll note a few things:
When you use DistroKid or CD Baby, you grant them a nonexclusive license. This means that the artist can license these rights to other people or entities.
When you use DistroKid or CD Baby, you grant their licensees (the DSPs) the right to copy, create derivative works from, distribute, perform, and synchronize your music with visuals.
If you are considering signing to a label, be aware that your contract with the label could assign copyright ownership of your current and future music from the artist to the label. This means that you are no longer entitled to the royalties associated with whatever music for which you assigned copyright ownership.
Make sure that you own the copyright(s) or otherwise have the required permission (licenses) for all parts of your music and cover art before your release!
Crediting someone does not constitute a license.
If you used a beat or images created by someone else make sure that you have a license from them to at least reproduce, create derivative works from, and distribute their work (preferably in writing). If you used content from an online source, check their terms and conditions or IP policy to check for licensing language.
Once you upload your music and cover art, distributors like DistroKid or CD Baby will allow you to select which DSPs on which you want your music to be available.
It’s generally advisable to upload your music and cover art at least one week if not two before your projected release date. Distributors take some time to process your work and it can take longer for your music to be available on some DSPs. If you want to celebrate a big release day, plan it in advance and make sure your music and cover are uploaded and submitted to your distributor 1-2 weeks before the date.
Digital Music Royalties
Music royalties are notoriously complicated. This section discusses what steps independent artists should take to make sure that they are not missing out on any potential royalties.
Steps for Independent Artists
In short, there are four steps that independent artists should take (as of 2025) to set themselves up to receive royalties from their music:
Register with a Performing Rights Organization (“PRO”). These organizations collect and distribute performance royalties which are payments made in exchange for the licensing of the performance of compositions. (PROs include BMI, ASCAP, SESAC, AllTrack, and Global Music Rights)
Register yourself and your music with the Mechanical Licensing Collective (“MLC”). The MLC collects and distributes mechanical licensing royalties which are payments made in exchange for the licensing of the reproduction and distribution of compositions. The MLC did not exist until a few years ago. If you have been releasing music for a while you can still add yourself as a member and add your songs.
Register with Sound Exchange. Sound Exchange collects and distributes digital performance royalties which are payments made in exchange for the licensing of the digital performance of sound recordings.
Set up your payment portal or bank with your distributor. Your distributor will collect your share of revenue from the licensing of the rights to copy and distribute your sound recordings from DSPs.
The MLC has a great chart that helps to visualize the above.(3)
Yes, you need to set up and monitor four different platforms to account for all of the royalties associated with your music. It is not a good system. I believe that distributors and lawmakers alike are working towards a future where one platform will collect all types of royalties but we are not there yet.
If you have any related questions relating to music copyright law or how to protect your intellectual property rights as an artist, you can book a 30-Minute Consultation or Contact me.
(1) 17 U.S.C. § 106.
(2) DISTROKID, DistroKid Distribution Agreement, https://distrokid.com/agreement/ (June 8, 2021); CD BABY, Artist Agreement, https://cdbaby.com/artist-agreement/ (Aug. 14, 2024).
(3) See MLC, The Digital Music Royalties Landscape, https://www.themlc.com/digital-music-royalties-landscape (last visited July 31, 2025).