What independent artists should know before signing a distribution deal
Rights, splits, and reversion clauses — the terms that decide your next five years.
Distribution deals look simple on the surface. The real story is in the fine print — and the terms that matter most are rarely the ones highlighted in the pitch.
Start with the split. A headline rate means little without knowing what it is calculated on: gross receipts or net after fees, whether marketing recoups first, and which costs the distributor is allowed to charge back against your account.
Then read the term and the reversion clause. A three-year deal that automatically renews unless you give written notice in a narrow window is functionally a much longer deal. Ask what happens to the catalogue at the end, how long the wind-down period runs, and whether your masters keep earning through the distributor after it closes.
Rights scope is where independent artists most often give away more than they intend. Distribution should cover distribution. If the agreement also sweeps in publishing, sync licensing, neighbouring rights, merchandise or a cut of live income, those are separate businesses being bundled into one signature.
Advances are not free money. They are recoupable against your future royalties, usually before you see anything, and an advance sized to your last release can quietly lock you into a term you outgrow within a year.
Practical checks before signing: get the reporting cadence and data granularity in writing, confirm you can audit, ask who controls playlist pitching and DSP relationships, and have a Canadian entertainment lawyer review the draft. Funding programs including FACTOR and provincial arts bodies will often help cover that legal cost.