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Digital Issues For Distributors And Indie Labels
The advent of digital-music delivery has brought about significant changes in both the format and distribution channels by which consumers receive music. Nonetheless, the fundamental role of distribution remains the same: to put product into the hands ' and today the computers and portable media devices ' of consumers.
Now, traditional offline distributors and a number of independent record labels have decided that digital distribution is an important component of their respective business models. The Independent Online Distribution Alliance (IODA), the Orchard and the Digital Rights Agency (DRA) are among a growing number of companies that offer digital-music distribution services to traditional offline-music distributors and record labels.
This article examines some of the interplay between the provisions of digital-distribution contracts and provisions contained in pre-existing contracts between offline distributors and independent record labels, and between independent record labels and artists.
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