What Software Do Independent Music Distributors Use?

The modern music industry still has its hidden corners. Most music fans can name a couple of record labels they like to support or that have amazing bands on their roster. 

However, not many know about the hidden wonders of independent music distributors. As a matter of fact, the music industry couldn’t work without independent music distributors. 

To begin with, what does it mean if a music industry company is independent?

Businesses within the music industry, for example, record labels, booking agencies or distributors, that work autonomously from the big major companies are labelled independent. 

The three big major players are Universal Music Group, Sony Music Group and Warner Music Group. Through their sub-companies, they control the ownership and financial means of many businesses. 

The organisation that supports the independent music industry internationally is called “Independent Music Companies Association” (short: IMPALA)

“IMPALA’s mission is to grow the independent music sector sustainably, return more value to artists, promote diversity and entrepreneurship, improve political access, inspire change and increase access to finance.” source

The main types of software independent distributors use

Like any music company in today's music industry, distributors also use software to do their job. It’s important to understand the mechanics behind the work of a distributor in order to gauge their trustworthiness and to determine if they are truly independent. 

Digital music distribution software

Firstly, a distributor that also works digitally with the so-called digital service providers (DSPs) like Spotify or Apple needs digital distribution software. The serviceability needed includes the delivery of the release to the DSPs and a workflow to validate the received and delivered metadata. What is more, a lot of DSPs implement platform-specific formatting that needs to be checked and adhered to. Next, once a record label flags a new release in the backend, it needs to be scheduled and approved for release. What is more, sometimes so-called takedowns need to be executed. That means that an album or track needs to be removed, for example, if the contract has expired without renewal. Sometimes, record labels also ask for certain territories to be taken out of service out of protest, for example. Of course, catalogue management is also a big topic for independent distribution companies that need to reflect this in the software they use. Lastly, a vast and extensive data analytics platform is needed to offer the record labels the cutting edge over the competition. 

Physical distribution and warehouse software 

By the same token, the traditional job of distributors was, and still is, the physical distribution of music commodities like CDs and Vinyl to retail shops. Of course, any physical distribution software an independent distributor uses needs to manage inventory, track deliveries to retail shops, and handle returns from the shops. Some distributors also offer webshop fulfilment or Bandcamp fulfilment. That means that they pack your webshop or Bandcamp orders and send them out on your behalf to the music fan. 

Sales ingestion and reporting software

Next, the actual sales of releases need to be accounted for, and therefore there is a need for specific software. This is wild: streaming sales contain an enormous amount of individual streams, often over an international scope of innumerable territories and currencies. Together with the sales of physical products across the globe, the software powering the sales ingestion and reporting needs to be more than robust. 

Royalty accounting software

Additionally, after the sales ingestion, you need to account for the actual royalties for your record labels or clients. Each month, you need to send the royalty statements stating the sales of physical products and likewise of streams and downloads of digital music. 

Accounting and invoicing software

Finally, you need software to do the accounting for your own financial recording, as well as an invoicing system in case you need to account for costs. For example, if you need to apply shrinkwrap to vinyl records or send back stock to the record label or client, then you can send an invoice for these services. 

Why independent distributors often start with multiple tools

You might be wondering why independent distributors start with multiple tools instead of going for the big solution straight away? 

Here’s the thing: the music industry is much older than most people think. The gramophone was invented by Emile Berliner in 1890, kickstarting the recorded music industry we know today. What does that mean? Many independent distributors have already worked in the music industry for a long time, with even modern digital distributors like CD Baby being over 28 years old. As time goes on, workflows shift, and technologies rapidly develop, the need for new software arises. 

What is more, many independent music industry companies, such as distributors, first get established as start-ups before becoming more established firms. Bootstrapping the company's founding from the kitchen table and with minimal means to get fancy software to do it all. 

As the distributor grows, a tool for royalties might be added. Next, you need software for your warehouse management. Before you think twice, you’ve accumulated too many different software applications and it becomes a burden to your workflow. 

What is distribution management software?

Distribution management software bridges the gap between all the different solutions listed above and instead offers a holistic approach to distribution. Instead of treating catalogue, contracts, sales, royalties, inventory and accounting as completely separate activities, it connects them through shared data and workflows. This is especially important for independent distributors that tackle digital and physical distribution, e-commerce fulfilment, and much more. 

What should independent distributors look for in software?

If you manage an independent distributor, there are some questions you need to answer first, before you can decide what kind of software would work best for your needs. 

Can it manage multiple labels?

Distributors take care of many record labels, and some also take on individual bands or musicians. Does the software support multi-label structures with all the royalty reporting and catalogue management that entails?

Can it manage both digital and physical products?

As mentioned above, many distributors offer both digital and physical distribution. However, the question is, can the software you are searching for also support both applications?

Can it ingest sales automatically?

Make sure that all relevant DSPs, aggregators and other sales sources can be automatically loaded into your software. The more your sales volume increases, the more automation will save your day.

Can it handle complex reporting?

Being able to offer your record labels or clients advanced reporting could make the difference against the competition and make them work with you. Having reporting available within the software can save so much time for your team and provide your clients with the data and information they need to succeed. 

Can it scale with your catalogue?

The bigger you get, the more the software should be able to scale up with your growth. Here’s the thing: making sure your software has the ability to accelerate your expansion will help you get there in the first place. 

Example of music distribution software

details is a distribution management software that combines multi-label management with logistics, stock management, automated sales imports, and accounting and reporting exports in one scalable tool for independent distributors. 

If you want an operational backbone for your independent distribution company that automates your workflow for both digital and physical distribution, details is the right choice for you. 

With details you can: 

• Automatically ingest metadata and sales from selected industry partners like Merlin, Discogs or IDOL labelcamp
• Load full catalogues into contracts automatically 
• Handle physical orders, stock, and shipping documents
• Organise your P&D, marketing, and promo services in the same platform

Using the power of independence for your business

Independent music distributors work at the crossroads of the music industry, technology, logistics and finance. Behind every release that reaches a record shop, a fan or a music streaming platform, there is an intricate operation powering the consumption system that pays everyone's bills. 

Independent distributors that use the right management software can streamline their workflow and data solutions in one platform, saving time, reducing manual work, delivering transparency and providing a steady hand in an incredibly fast-paced environment. 

No matter where in your journey you are right now, one thing is clear: the software that you use is as important as the rest of your work. 

details is built exactly to do just that, solving your operational problems so that you can concentrate on the original drive that got you into independent music distribution. 

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