Australian Music Distributors Vs Overseas: Why Local Is Better
It's no secret that the music industry is a tough one. With so much competition out there, it can be hard to make your voice heard. This is especially true for new artists and bands who are just starting out. One of the most important decisions you can make as an artist is choosing the right music distributor. There are many different distributors out there, but not all of them are created equally. In this blog post, we will discuss the benefits of using Australian music distributors such as Musible over offshore distributors such as DistroKid & CD Baby.
There are a number of reasons why Australian music distributors are the better choice. One of the most important factors is that they understand the local market. They know what type of music is popular in Australia, increasing the chances of your song being pitched to Australian representatives at Spotify & Apple Music and getting on editorial playlists. Overseas distributors may not have this same understanding, which can lead to your music being lost in the shuffle.
Keep in mind the additional costs associated with using offshore distributors like Distrokid which include PayPal fees:
3.6% cross border transaction fee
$.30c fixed fee (AUD)
4% currency conversion fee
5% withholding tax for using a US company
Totalling 12.6% + 30c in additional Fees.
If you withdraw $1000 from your streaming account, you will receive approximately a measly $873.10.
With local distributors like Musible, we payout directly to a bank account in AUD. The transaction fee is $AUD 57c each time. Plus 8% commission is already calculated before the funds show up in the artist’s account, so the amount they see in their account is the amount available to them (minus the transaction fee). That’s it! So if you were extracting $1000 from your streaming account, you would get $999.43.
Another advantage of using Australian music distributors is that you're dealing with someone who lives in your area and in the timezone as you, instead of someone in Sweden! Ultimately, you'll get a better customer service response time and a more personal level of assistance that can be only found within a local business.
So, if you're an artist or band looking for a music distributor, be sure to choose one that is based in Australia. You'll be glad you did!
