Subscription-based platform aims to revolutionize music distribution

Emerging nonprofit DISTRO is using a unique subscription based business model to generate enough revenue to lift off its initial stages of development and transform the music industry.

The music distribution platform is a first of its kind, allowing users to subscribe directly to the artist, rather than going through a third-party provider. Subscribers can still create music libraries on their preferred platforms, such as iTunes or Spotify, and will also automatically receive newly released songs for a year without having to search through intermediary channels.

DISTRO gives artists the ability to determine the costs for users to subscribe to their pages and receive content. As a nonprofit, DISTRO will only take out enough funds to cover its operating costs. This allows musicians to generate more revenue, without major intermediaries taking a portion of the profit.

A growing number of companies are deploying subscription models to generate more revenue. YouTube, for example, is considering implementing a subscription process that will require users to pay a small fee if they want to view premium content, according to the New York Post.

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The Forrester Wave: Subscription Billing Platforms, Q4 2015

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