Blog Post

RoyaltyShare Phases Out Digital Distribution

imageA little over a year after RoyaltyShare entered the digital-distribution business, the company is exiting the market, paidContent has learned. When it introduced its digital-distribution service last January, RoyaltyShare said it would provide a web-based platform for record labels and niche distributors to interact directly with digital retailers, bypassing the need to go through large digital aggregators such The Orchard (NSDQ: ORCD). The company also said digital distribution would compliment its royalty service, which helps entertainment companies calculate royalties from digital sales.

But spokesman Mike Kelly said the economy had forced the company to de-emphasize the service, which is no longer taking on new customers. Two of RoyaltyShare’s 30 employees have been let go — and other employees are moving to the company’s royalty and sales management operations. While RoyaltyShare provides customers with analytical data on their digital sales, a company like The Orchard also woks with stores to market new music releases. With labels operating with skeleton crews these days, some may see the fuller service option as a better proposition.

2 Responses to “RoyaltyShare Phases Out Digital Distribution”

  1. Robin

    To be honest it was a crazy idea in the first place. Royaltyshare seem to come up with "new ideas" every year and then back out of them after a while. All that money they have had invested in them and they have barley made a dent in the market, cannot see them lasting much longer.

  2. Sadly, RoyaltyShare attempt didn't work out as planned. Well, they don't have any other choice but to back out with their previous plan in order to avoid any future loss.