The music industry is growing every day. The main reason behind this is the availability of the same on several digital channels. Those days are gone when people use to buy CDs or DVDs for enjoying music, now audiences prefer to download their loved music online. Recognizing the growth opportunities in this field many companies have been set up that deal exclusively on Digital Music Distribution.
Now, let take a look at the most crucial aspect of this whole distribution process that is revenue. Starting from collection keeping records, cutting shares, and then distributing to the end artist or label, the revenue cycle is highly extensive and complicated. If done manually there are high chances for mistakes and also it consumes an ample amount of time and human resources. Hence, in order to get rid of this intricate process most of the digital music distributing companies have started giving over this task to other companies.
This way distribution companies lower down their burden as well as their profit level, which they share with royalty processing companies. From a profit point of view for both distribution companies and artists, it is more beneficial to have their own distribution as well as royalty processing set up. It may sound quite extensive as well as expensive, but the fact is it’s not.
The rise of the internet in the past few decades has dramatically changed the music industry on many levels, including how music is produced and distributed, how artists are discovered and promoted, as well as what exactly generates a profit. It has been predicted that the revenue will increase from 11.7 billion U.S. dollars in 2015 to 15.7 billion U.S. dollars in 2020.
As an artist, if you are paying 15% of your music revenue to distribution companies for your music distribution and royalties processing, then it will be more profitable for you in the long term to have your own software. Cryptex Technologies has developed robust scalable software solutions for Digital Distribution and royalty processing for your own music distribution.