A unique approach to distribution, built in contracts
Designed around the needs of labels while keeping artists' interests in mind, Labelcaster offers a unique system to handle releases, distribution, and royalty payments. It might take a minute to get your head around, but workflow is straightforward once you do, and everyone gets taken care of the back end!
When you initially set up each release—in addition to adding content and materials—you'll invite artists to join Labelcaster. A contract is then generated that describes how royalties are split and paid. The Labelcaster system handles electronic contract signing, ensuring the release is approved by everyone. We subsequently use these terms to automate reports and payment transfers on the back end when royalties come in. All parties have complete visibility throughout the process.
Contracts, use our template or your own
Tied to releases, contracts in Labelcaster ensure two main things— music and content is properly licensed and parties are properly compensated when royalties come in. A release cannot be distributed until the contracts have been signed by all parties.
The simplest way to work is to use Labelcaster’s built in contract that handles both licensing and splits. As a label owner, you’ll add artists to the contract with split percentages. You can add as many artists as you like. The Labelcaster system then sends out notifications to all artists and takes care of e-signing of the contract.
Alternatively, you can use your own “offline” contract for licensing and just set up splits. A simple split agreement is then sent out to the artists for e-signing. You can upload your contract for safe keeping to be part of the release if you like, but you don’t have to.
Distribution to DSPs—aka digital streaming servces or online music stores
Preparing your release
There are basically four things that happen for you to set up a release.
- Invite your artists to join Labelcaster so they can sign contracts, help with releases and get reports and payments
- Add you release content including audio files, cover art, credits and other metadata, release date, and which territories and DSPs it should go to.
- The contract is distributed and e-signed through our system
- Once the contract is signed by all parties, you have one final approval to push it to us for distribution
Labelcaster delivery to DSPs
Once your release moves from Draft to QC in Progress, we at Labelcaster take over. We do a final check that content is OK—valid audio files, no licensing issues, cover art meets DSP standards. Then your release is distributed out to all your chosen DSPs and released on the scheduled date.
Reporting and payment
We don’t take any upfront fees when we distribute your label’s music. Instead, we take our fee as a 10% commission on the royalties processed through Labelcaster. Because we share the risk with our labels we vet all our applications to ensure they are legitimate label businesses and not just hobbyist musicians.
When the royalty data and revenue comes in from the DSPs each month, we take our 10% share and then process it all in our system allocating the right royalty amounts to all parties as prescribed in the contracts. Each account can view and download their reports. They can view and transfer any royalty balance they have. Currently we offer transfer through PayPal, Payoneer or bank transfer (if the amounts are large enough).