Distribution

Distribution is the process of how albums and singles get into shops and online. Distribution companies sign deals with record labels, but also artists in rare occasions, that gives them the right to sell that label's products to record stores that have an account with that distributor. The distributor then takes a cut of income from each album or single sold and then the pay the label the remaining balance.
          Before the digital revolution, distribution used to be promoting the singles and albums to get them into shops and to be played on the radio. Now distribution does not just that, but it also is now the process of getting the product up on the internet to be downloaded, and having it played on YouTube.
          The different ways music is distributed theses day include digital distribution and the physical distribution of albums and singles. Digital distribution puts the music straight online meaning it bypasses the physical distribution. A prime example of a digital distributor would be Apple inc. as they have the iTunes store, and distributors make sure that they get iTunes to sell the music.  
          As for the future of music distribution, it is said that by 2014 the digital music opportunity is predicted to be an $8 billion industry that is growing at an 18 percent CAGR and digital distribution will grow by 16% while physical distribution is predicted to drop by 98 percent. Which is can cause massive layoffs in the music industry. Broadband growth and proliferation of smart phones etc. are expected to continue to drive global growth and penetration of music distribution.