How to read a distribution agreement: term, exclusivity, fees, takedowns, AI and payouts, clause by clause

A distribution agreement is the contract that lets a company put your recordings on streaming services and collect the money they earn. Most artists click "I agree" without reading it; this guide shows the six clauses worth reading first, using the real public terms of DistroKid, TuneCore and Ditto Music as we read them on 27 Oct 2026.

This is not legal advice. Terms change, so check the live version before you sign up or move a catalogue. For the money side of the choice, read how to choose a distributor in 2026; for how distribution differs from a label deal, read 360 deals vs distribution vs label services.

Key facts

• DistroKid's Distribution Agreement runs for one year and renews automatically; its rights are non-exclusive.
• TuneCore's Terms, revised 31 Jul 2026, refer to separate Music Distribution terms that the page names but does not link.
• Ditto's Terms let either side end the deal on one day's notice, and pay out only above 25 GBP.

Where the clauses actually live

Before reading any clause, find all the documents. DistroKid's Terms of Service say distribution is governed by a separate Distribution Agreement. TuneCore's general Terms list supplemental terms by name (Music Distribution, Publishing Administration, YouTube Sound Recording Revenue and others) but the page we read did not link them. The rule: the document you click through at sign-up is often not the one that decides how you are paid.

1. Term: how long you are tied in

What to check: what happens to live releases if a card payment fails. DistroKid's agreement (§4.c) lets it terminate if your card expires or is declined, and termination triggers removal (§4.d). An expired card can take your catalogue offline.

2. Exclusivity: who else can you use?

All three grant rights on a non-exclusive basis. DistroKid says so in §2.a and §5.a; TuneCore's Terms (§6.2) license user content on a "worldwide, non-exclusive" basis; Ditto's clause 2.1(A) grants "a non-exclusive world-wide licence", and clause 3 says you keep copyright.

Two catches. TuneCore's same clause says that licence is "perpetual and irrevocable", and it carves recordings and compositions out to its supplemental terms, so read those too. Ditto's clause 2.1(B) becomes an exclusive licence only if you use its PPL airplay registration service. Non-exclusive on paper also does not mean you can send the same track to the same store twice: two distributors delivering one recording usually produces duplicate listings and conflicting Content ID claims, in our experience.

3. Fees and commission

DistroKid's §7.a says it posts 100% of money it receives to your account, less payment-processing fees, and deducts 20% from YouTube Content ID income. TuneCore's pricing page advertises annual plans from $24.99 a year and says you "keep 100% ownership and control", while its Terms (§13.6) say it may revise pricing at any time. Ditto's terms cover service prices but state no royalty split.

What to check: the carve-outs. "100%" usually means 100% of what reaches the distributor, after stores take their share, with separate cuts on side services like Content ID.

4. Takedowns: getting out, and being pushed out

Read both directions. You can delete releases at any time during DistroKid's term (§1.f), and DistroKid may remove recordings itself in several circumstances (§2.e); neither the agreement nor the Terms give a takedown deadline. TuneCore's Terms (§10) let it refuse or remove content "in their sole discretion", and its copyright clause promises to act "expeditiously" without a fixed timeframe. Ditto is the only one of the three to name a time: it instructs partners within 30 days of termination, and you pay any third-party takedown fees.

What to check: whether takedown deletes your stream counts and playlist placements if you later re-release elsewhere. None of these three documents promises to help you migrate.

5. AI policy: mostly not in the contract

This surprised us. DistroKid's agreement and Terms do not mention AI-generated content. Ditto's Terms do not address it either. TuneCore's only AI line in its Terms is in the refund clause (§13.4): no refund for GenAI content made "in whole or in part" with "Prohibited Platforms", a term the page does not define.

So the rules that can get your track rejected live in help-centre pages that can change without a contract amendment. We cover those pages in how to disclose AI use through your distributor, and what to do when a human track is flagged in our AI flag appeal kit.

6. Payout thresholds, forfeiture and law

• Thresholds: DistroKid's agreement sets no minimum and says you withdraw "at your discretion" (§7.d). Ditto pays only when accumulated earnings exceed 25 GBP (clause 5). TuneCore's Terms state no threshold.
• Forfeiture: DistroKid says you forfeit money attributable to "fraud, infringement or other illegal activity" and it may withhold payments while claims are unresolved (§7.g). Ditto says fees and later royalties are forfeited if material is illegal or fraudulent (clause 5). Neither defines artificial streaming in these documents.
• Governing law: New York for DistroKid (§10.h), Luxembourg for TuneCore (§27.2, with actions filed only there), England and Wales for Ditto (clause 18).

What we think

The headline price is the least important number in these documents. Three things matter more.

First, the real contract is scattered. The AI rules, the commission on side services and the payout minimums sit in pages that are not the agreement you accepted. Screenshot or save every relevant page with the date when you sign up; it is the only record you will have if the wording changes.

Second, forfeiture clauses are written broadly and enforced by the distributor. "Fraud" and "withhold while claims are unresolved" cover a bot farm, but they can also cover a stream spike you did not cause. That is a reason to keep your promotion receipts, not a reason to panic.

Third, governing law is a practical cost. A dispute with TuneCore must be filed in Luxembourg. For most independent artists, that means the support ticket is the whole of your remedy, so judge a distributor on how its support handles problems, not on its contract alone.

FAQ

Is a distribution agreement the same as a record deal? No. All three here are non-exclusive and leave copyright with you; a label deal usually takes rights or a share of them.

Can I cancel at any time? Mostly, but read the renewal clause. DistroKid renews yearly unless you cancel before the year ends; Ditto needs 30 days' notice before the anniversary to stop renewal.

Does "keep 100%" mean no deductions? No. DistroKid's own 100% clause deducts payment fees and 20% of Content ID income.

Where are the AI rules? In help pages, not in these agreements, apart from TuneCore's refund exclusion.

Sources

• DistroKid Distribution Agreement and Terms of Service
• TuneCore Terms and Conditions and pricing
• Ditto Music Terms & Conditions

Updated 27 Oct 2026.