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Business Operations Business Models

How Does DistroKid Make Money (Business and Revenue Model)

The DistroKid business model

DistroKid logo
Here’s what you should know:
  • What is DistroKid, and how does DistroKid work?
  • How does DistroKid make money?
  • Yearly Subscription Fees (for Music Distribution)
  • Album Extras
  • Other Tools and Services
  • DistroKid profit and revenue
  • What is the DistroKid business and revenue model?
  • DistroKid funding, net worth, and valuation
  • DistroKid subsidiaries, acquisitions, and exits

How does DistroKid make money if musicians keep 100% of their earnings? Well, here is a full, in depth, breakdown of their three (3) revenue streams and the different products and services they offer, as well as the DistroKid business and revenue model, how much DistroKid makes per year, and how DistroKid works.

What is DistroKid, and how does DistroKid work?

DistroKid is an independent digital music distribution service that offers musicians and other rights-holders the opportunity to distribute and sell or stream their music through online retailers like Spotify, Apple Music, and more.

Founded in 2013 by Philip J. Kaplan, DistroKid now distributes music to over 150 digital stores across 200 countries and territories worldwide for the more than 2 million musicians on their platform.

So, how does DistroKid work? To distribute your music using DistroKid, you first need to sign up for and create a DistroKid account.

After your account is created, all you need to do is upload your music and artwork to DistroKid, enter in the details of your release, add Album Extras (optional), and select the digital stores and streaming services you want your song or album distributed to.

Some of DistroKid’s competitors include TuneCore and other digital music distribution services.

How does DistroKid make money?

According to DistroKid, DistroKid distributes music to over 150 digital stores across 200 countries and territories worldwide for the more than 2 million musicians on their platform.

So how does DistroKid make money off of all these musicians and distribution?

Below is a breakdown of how much money DistroKid makes and its revenue model. Including all revenue streams and how much they charge for their services.

Here are the 3 ways of how DistroKid makes money in 2022

DistroKid has a revenue model that makes money in three (3) ways; yearly subscription fees for music distribution by DistroKid, selling extra add-ons called Album Extras, and other tools & services.

#1. Yearly Subscription Fees (for Music Distribution)

One of the ways DistroKid makes money is by charging independent artists and labels a yearly subscription fee to use its distribution services.

DistroKid offers seven (7) paid subscription tiers that range depending on the needs, they are; Musician, Musician Plus, Label (5, 10, 20, 50, 100). Each of which is suited for the number of bands / artists they need – from a singles artist plan to a label plan that supports up to 100 artists. Which you can see below + pricing.

How much does DistroKid cost? (DistroKid pricing)

  • Musician: $19.99 per year
  • Musician Plus: $35.99 per year (for 2 bands or artists)
  • Label Plans: $79.99 to $1,199.99 per year (for 5 to 100 bands or artists)
DistroKid distribution | DistroKid Business Model | How Does DistroKid Make Money? | How Does DistroKid Work?
Source: DistroKid

Note: DistroKid does not offer any free tiers.

#2. Album Extras

DistroKid also makes money by offering additional add-on perks they call Album Extras.

There are a total of nine (9) Album Extras DistroKid offers, they are; Discovery Pack, Store Maximizer, YouTube Content ID, Cover Song Licensing, Leave a Legacy, Tidal Master, Social Phone, Dolby Atmos, and Loudness Normalization.

All Album Extras are optional and are not required in order to get an artist’s music sent off to digital stores and streaming services, except for “cover licenses” – which an artist will need if they want to distribute covers.

Each extra provides its own separate service and ranges in price and payment method (one time payment or subscription based). Which you can see a simplified breakdown below. You can also see the full detailed list of Album Extras with pricing for each one here.

What are DistroKid extra fees? (extras charge)

  • Recurring fees: $0.99 to $14.95 per song / album, per year (depending on the service)
  • One-time fees: $2.99 to $49 per song / album (depending on the service)

Note: Some Album Extras are one time payments, while others are subscription based.

#3. Other Tools and Services

In addition to offering Album Extras, DistroKid also makes money off of more optional services offered to artists and labels on their platform.

Some of these tools and services are free and include things like adding your lyrics to streaming services & search engines, protecting your music from unauthorized release with DistroLock, and more. To see the full list of other tools and services DistroKid offers, click here.

Note: Some of these DistroKid tools and services are free, while some come with additional costs for the service.

DistroKid profit and revenue

DistroKid has not released any official reports in regards to company earnings.

Note: Because DistroKid is a privately held company, they are not required to make their annual reporting, such as Form 10-K’s, pubic.

What is the DistroKid business and revenue model?

DistroKid makes money through a few revenue models that they combine within their company, they are:

  • Subscription business model
  • Fee for service (FFS) business model
  • À la carte business model
  • Profit sharing business model
  • Business to business (B2B) business model
  • B2B2C (partnerships) business model

DistroKid funding, net worth, and valuation

DistroKid’s Crunchbase profile shows DistroKid has raised an undisclosed amount over 3 rounds and has a valuation of $1.3 billion as of August 2021.

DistroKid subsidiaries, acquisitions, and exits

To date, DistroKid has not made any acquisitions, investments, or exits.