Transparency creates trust. We want you to understand the cost structure behind the production and release of our products, so we would like to explain the expenses for your release.
Transparency creates trust. We want you to understand how we handle the costs behind producing and releasing your music, so here is a clear overview of what typically goes into a release.
From day one, we have worked to keep production costs as efficient as possible without compromising quality. A dedicated team supports your release across planning, production, marketing, distribution, and admin. There is always a baseline investment required to launch a release properly, and depending on how a release performs, we often increase the budget to accelerate growth with additional marketing and production steps.
On average, the total investment for a release with one of our labels covers various marketing and production activities, especially team time and general administration of the label. The majority of these efforts are carried by us. A smaller portion is allocated to the artist side. Per the artist contract, this portion is shared 50/50 between label and artist and may be recouped from the artist’s royalties. In other words, while we invest significantly into each release overall, the amount that may be recouped from your royalties represents only a limited share and depends on the exact level of production and marketing required for your release.
The costs depend on the release's production and marketing activities. In July 2021, we initiated an additional “Together Onetime” promotion, and the results are visible.
For every release, we distinguish between indirect and direct costs. We want this to be clear and fair, because transparency builds trust.
Indirect costs include everything required to run the label day to day, such as administration, employee salaries, office rent, accounting, and other essential operating costs.
These costs are not deducted from your royalties. They are fully covered by the label and usually make up the largest share of the overall investment behind a release.
Direct costs are expenses that are directly tied to your release, for example production, marketing, advertising, or remixer fees. Depending on the cost category and your contract terms, a share of these direct costs may be recouped from release revenue.
In general, direct costs can include at a minimum: