Distribution licence advances
The short answer
A distribution licence advance is upfront money paid for the exclusive right to distribute your existing recordings for a fixed term. We structure terms of 5, 10, 15, 20 or 25 years. You keep ownership of your masters, the advance is recovered from the catalog's income during the term, and when the term ends the rights return to you.
Licence or sale: what is the difference
Selling your catalog and licensing it both put money in your hands today. The difference is what you still own tomorrow.
- Ownership: in a sale the masters go to the buyer for good. In a licence you keep them, and you only grant the right to distribute them for a set period.
- Term: a licence has an end date. When it arrives, the rights come back to you and you can license them again, sell them or release them yourself.
- Income during the term: the distributor collects the income, recovers the advance first and then pays you your share under the agreed split.
- Cash: a full sale usually pays more upfront. A licence pays less, but you keep an asset that keeps earning after the term.
A licence makes sense when you want cash now but believe your catalog is worth more to you over time than what a buyer would pay today.
How it works
- Confidential review. You share your distributor statements, your current distribution agreement and proof of ownership, under NDA.
- Valuation and terms. We model what your catalog earns and what advance each term could support, so you can compare 5, 10, 15, 20 and 25 years side by side.
- Competitive process. We take your catalog quietly to distributors and capital partners from our network of 40+ and ask for offers.
- Negotiation. We negotiate the advance, the split after recoupment, the term, the reversion clause and your audit rights.
- Closing. You sign, the catalog is moved to the new distributor with clean metadata and you receive the advance.
Compare your options
| Full catalog sale | Distribution licence advance | Royalty advance on your current deal | |
|---|---|---|---|
| Ownership of your masters | Goes to the buyer for good | You keep it | You keep it |
| Cash today | Usually the highest | Meaningful, usually higher for longer terms | Depends on your current income |
| Income during the term | Goes to the buyer | Recovers the advance, then shared under the agreed split | Recovers the advance first |
| At the end | Nothing comes back | The rights return to you | The deal continues as before |
| Best for | A clean exit | Cash now while keeping the asset | Staying where you are |
Every case depends on what your catalog earns, how stable that income is and the term you choose, so we never promise a figure before reviewing the numbers.
Who this is for
- Independent artists and labels who own their masters and have releases more than two or three years old with steady income.
- Artists whose masters have reverted to them after a label deal ended.
- Catalogs whose current distribution deal is ending and could be placed on better terms.
- Estates and heirs who want income today without selling the legacy.
It is usually not a fit if a label still owns the masters (see unrecouped deal buyouts) or if the catalog earns very little today.
What we need to review
- Proof that you own or control the masters (contracts, reversion letters, split sheets).
- Your last 12 to 24 months of distributor statements.
- Your current distribution agreement and its end date.
- Your list of releases and ISRCs.
- Any existing advance, loan or lien against the catalog.
Other options
If a label still owns your recordings and you are unrecouped, see unrecouped deal buyouts. If you would rather sell, read how to sell your music catalog.
Frequently asked questions
Do I keep ownership of my masters?
Yes. A licence grants the right to distribute your recordings for a fixed term. Ownership stays with you, and when the term ends the rights come back.
How much could the advance be?
It depends on what your catalog earns, how old and stable that income is and the term you choose. After a confidential review we give you a realistic range for each term, never a guaranteed figure.
Which term should I choose?
A longer term usually supports a larger advance, but you wait longer to have full control again. We model the options side by side so you can decide with numbers.
Can I keep releasing new music?
Usually yes. The licence normally covers only the releases listed in the contract, and new music stays free. We check this clause before you sign.
Do I have to pay back the advance?
In most structures the advance is recovered only from the catalog's income, not from your pocket. The exact terms are set in the contract and we review them with you.
Do you charge upfront fees?
No. BeatBridge works on success: we are paid when the deal closes.
Who handles your case
Andrés Pesqueira López, Co-Founder. In the music business since 2017, he has built a publishing administration business with 80+ clients and negotiated deals with Universal, Sony Music and Ultra Music. BeatBridge has advised on more than $28M in catalog value and works with 40+ buyers and capital partners in 15 countries.
Basics
See what advance your catalog could get
A 30-minute confidential call. Bring your latest distributor statements and we will tell you which terms make sense.
This page is general information and not legal, tax or financial advice. Every structure depends on your catalog, your contracts and the offers received.