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RoyaltyShare Pulls Out Of Digital Music Distribution

SAN DIEGO(Hypebot) – Music royalty and sales services provider RoyaltyShare is pulling out of the digital distribution business. Just a year after adding low cost digital distribution, the company is no longer soliciting new labels and is working to find new homes for existing clients.

Company spokesman Mike Kelly told paidContent that the economy had forced RoyaltyShare to de-emphasize distribution and lay-off two of its 30 staffers. Other employees are moving to the company's other operations.

Digital distribution is increasingly as commodity business with ongoing downward price pressure. Full service digital distributors like The Orchard, IODA and INgrooves are responding by adding new services like marketing and brick and mortar distribution to justify their fees.