Music industry terminology
P&D (Production & Distribution)
Also called: Production and Distribution deal, P&D deal
A P&D (Production & Distribution) deal is a record label arrangement where one party (the distributor) handles manufacturing and distribution of a release while the other party (the artist or label) retains creative control, marketing, and ownership of the masters. P&D is a middle ground between full self-release and a traditional label deal.
In a typical P&D deal, the artist or independent label produces the recordings, designs the artwork, sets up the marketing, and delivers the finished masters to the distributor. The distributor handles physical manufacturing, digital distribution to streaming platforms, and gets the music into stores. The artist retains ownership and most of the revenue. The distributor takes a percentage off the top, which is fair, because logistics is genuinely a real job.
Why it matters
P&D is how indie labels and self-managing artists get distribution scale without giving up master ownership or creative control. It is the structure used by many successful indie labels and individual artists who have outgrown DIY distribution but do not want to sign their souls to a major label.
The trade-off is straightforward: the artist or label loses some revenue per unit sold (the distributor cut, typically 10% to 25%) but gains access to the distributor's logistics, retail relationships, and digital service connections that would take years to build alone.
How it works
A P&D deal typically covers: physical manufacturing (vinyl pressings, CD duplications, special editions), digital distribution to all major streaming platforms (Spotify, Apple Music, Amazon, etc.), placement in retail (independent record stores, chain stores, Amazon physical), royalty accounting and payment, basic catalog services (DSP delivery, metadata management).
What is typically NOT covered: A&R, recording costs, marketing, publicity, sync licensing, touring, merchandise. The artist or label keeps responsibility for all of those, which is a long list.
Distribution percentages vary. A typical deal might be 80/20 (artist 80%, distributor 20%) on streaming income after the platform takes its cut. Physical sales often use a different formula based on wholesale price minus manufacturing costs.
Term length is usually two to seven years. Some P&D deals include a "right of first refusal" clause where the distributor gets first crack at any new releases before the artist shops them elsewhere. Read those clauses carefully or your hands get tied for the next album.
Examples
- An indie label has been self-distributing for five years and has built up steady catalog sales. They sign a P&D deal with a regional distributor. Their physical sales triple in year one because the distributor has retail relationships the indie label could not reach alone. Sometimes the right partner is the difference between a hobby and a business.
- A solo artist with three successful self-released albums signs a P&D deal for their next record. They retain master ownership and 80% of streaming revenue but gain wholesale distribution to physical retailers and a vinyl pressing run that would have been logistically impossible to coordinate alone.
- A boutique sync library uses a P&D arrangement to feed their catalog into major commercial music subscription services they cannot reach directly. The distributor takes a percentage of every license, and the library keeps its independence and master ownership.
Common mistakes
- ●Conflating P&D with a label deal. A real label deal typically includes A&R, advances, marketing budget, and master ownership transfer. P&D includes none of those. Make sure the deal you are signing actually matches what you think you are getting, not what the rep says it is over coffee.
- ●Not negotiating the percentage. Distributor percentages are negotiable based on artist track record. A new artist might pay 25%. An established indie with proven sales might negotiate down to 10% to 12%. Sales numbers are leverage.
- ●Skipping the audit clause. Reputable distributors will allow an annual audit of accounting. If a distributor refuses audit rights, that is a red flag bigger than the parking lot.
- ●Not specifying digital vs physical. Some P&D deals only cover physical distribution. Some only cover digital. Some cover both. Read the territory and rights clauses carefully so you know exactly what is included before you sign anything.