Global Distribution Platform Fee Calculator

The platform's revenue share percentage directly reduces the portion of your streaming revenue that you retain. For example, if a platform takes a 10% revenue share and your projected annual revenue is €10,000, the platform will retain €1,000. This is in addition to any flat fees or other costs, so it’s critical to account for both when evaluating your net income. Platforms with lower revenue shares are generally better for high-earning artists, while those with flat fees may be more suitable for emerging artists with lower revenue projections.

In the music distribution industry, flat fees typically range from €20 to €100 per year for basic plans, while revenue shares vary between 10% and 30%. Some platforms offer hybrid models with both flat fees and revenue shares, and others provide unlimited distribution for a single annual fee. It's important to compare these benchmarks against your projected revenue to determine which model aligns best with your financial goals. High-volume artists often benefit from platforms with lower revenue shares, while smaller artists might prefer flat-fee-only models to minimise upfront costs.

Additional yearly fees, such as charges for UPC or ISRC codes, can significantly increase your overall distribution costs, especially if you release multiple tracks or albums annually. These fees are often overlooked but can add up quickly, particularly on platforms that charge per release. For example, if a platform charges €20 per release for UPC codes and you release five singles in a year, that’s an extra €100 in costs. Be sure to include these fees in your calculations to avoid underestimating your total expenses.

A common misconception is that flat fees are always cheaper than revenue shares. While flat fees provide cost predictability, they may not be the most cost-effective option for artists with low streaming revenue. Conversely, revenue shares can become expensive for high-earning artists. For example, an artist earning €50,000 annually might lose €5,000 with a 10% revenue share, far exceeding a €99 flat fee. The best choice depends on your revenue level and release strategy, so it’s crucial to compare both models using tools like this calculator.

As your streaming revenue increases, consider switching to a platform with lower revenue share percentages or flat-fee-only models to maximise your net income. Many platforms offer tiered pricing or premium plans for high-volume artists, which can reduce your effective costs. Additionally, negotiate with your aggregator for better terms if you have a proven track record. Monitoring your revenue growth and recalculating your costs annually can help you identify when it’s time to switch or renegotiate your distribution plan.

Yes, regional considerations can play a significant role in your choice of a distribution platform. Some platforms have stronger relationships with specific streaming services or markets, which can impact your reach and revenue potential. For example, a platform with strong ties to Asian markets like Tencent Music might be advantageous if your audience is concentrated in that region. Additionally, currency exchange rates, local tax policies, and payout structures can vary by region, so it’s essential to factor these into your calculations when choosing a platform.

When projecting your annual streaming revenue, consider factors such as your current monthly streaming numbers, seasonal trends, promotional efforts, and potential growth. Platforms like Spotify and Apple Music pay per stream based on varying rates, so understanding your average per-stream revenue is crucial. Additionally, account for any planned releases or marketing campaigns that could boost your streams. Being conservative in your estimates can help you avoid underestimating your costs and ensure a more accurate comparison of distribution platforms.

Some distribution platforms require exclusivity agreements or long-term contracts, which can limit your flexibility to switch services if your needs change. For example, an exclusivity clause might prevent you from simultaneously using another aggregator to distribute your music to certain platforms. Additionally, early termination fees can add unexpected costs if you decide to end the contract prematurely. Always review the terms carefully and consider the long-term implications before committing to a platform, especially if you anticipate changes in your revenue or distribution needs.