By admin 
The rise of DIY music distribution platforms like TuneCore and DistroKid has been undeniably transformative for artists: it has given them the ability to reach listeners without traditional label restrictions.
But while democratization has opened doors for countless artists, it has also opened the floodgates to an equally pernicious, unintended byproduct: rampant fraud and copyright infringement. For context, Luminate reported that more than 120,000 new songs were uploaded daily in 2023, a sharp increase from 93,000 per day in 2022. The increase is mainly due to two things: the ubiquity and growth of the DIY self-distribution sector and the proliferation of consumer numbers. -oriented music production tools. This relatively emerging landscape has dramatically increased not only the amount of content, but also the industry’s exposure to unauthorized and infringing material.
Universal music group recent $500 million lawsuit against TuneCore and parent company Believe emphasize its seriousness, but also a turning point. The lawsuit alleges that these platforms illegally profit from massive copyright infringement, with both the distributor and the unethical user to blame for distributing and monetizing the unauthorized IP. Ultimately, this case points to a broader, systemic failure, exacerbated by inadequate monitoring, accountability and safeguards for control. But the ecosystem has become too large, too unregulated and too profitable for some stakeholders to right on their own. The reform is too late.
Democratized distribution
DIY distribution was originally designed to create a level playing field, allowing any artist to release music on platforms like Spotify, Apple Music, and YouTube. However, open access also had side effects, most notably rampant IP abuse. The sector has become a breeding ground for exploitation; malicious users take advantage of the low barrier to entry by uploading pirated, remixed, or slightly modified versions of copyrighted songs. Collectively, these uploads generate significant revenue, some of which goes to the distributors who host them.
This is far from an isolated problem. With millions of songs uploaded every year, it is a huge challenge to verify each song. Although some platforms claim to have anti-fraud systems in place, police measures often fall short. The sheer volume of uploads makes scalable monitoring difficult, creating a laissez-faire approach that indirectly enables infringement.
YouTube Royalty Collections Unique challenge
Nowhere is this problem more widespread than YouTube, where scale and visibility are inherently even more challenging. Some users deliberately circumvent YouTube’s copyright policy by uploading and distributing pitched remixes, slowed/accelerated remixes, or near-identical versions specifically to circumvent Content ID. Detection is challenging and most of this breach goes unnoticed. Even if violations are found, recovering embezzled payments is impossible. Artists must navigate an opaque, complicated system that often exposes their rights and minimizes their income. For many independent artists, YouTube is an important revenue stream, and copyright fraud siphons off that revenue with few resources.
Consequences for the entire sector
Overvaluing volume versus quality control creates a system ripe for exploitation because the current model often benefits the offender. But solving the core problem will require more than increasing litigation. There must be enforceable quality control measures that are clearly communicated and that actively deter fraud while protecting rights holders. Transparent protocols to ensure flagged content does not generate revenue for violators, and improved early detection systems will help standardize accountability and visibility. An enforceable and sustainable security system will:
A. Prevent infringing content from reaching listeners in the first place
B. Require greater transparency when infringement occurs, and
C. Ensure legitimate compensation for rights holders.
Closing the knowledge gap and developing industry-wide standards are also essential for meaningful change. By raising public awareness, providing a forum for artists and rights holders to report infringement, and increasing pressure within the industry, the path to reform is achievable – and similar to regulations implemented to curb other forms of online piracy.
A call for collective responsibility
Setting clear deadlines for reforms will hold platforms and distributors accountable while improving transparency. Fundamentally, and despite the challenges of volume, even mass DIY distributors must demonstrate a fundamental respect for intellectual property and prioritize rights holders/artists while identifying (and deterring) the bad actors undermining them.
With collective, industry-wide efforts, digital music distribution can become a sustainable model that supports independent artists while upholding their rights. A system that empowers artists while maintaining integrity is essential to preserving the value of music and protecting it from exploitation.
George Karalexis is co-founder/CEO of Ten2 Media. His expertise as a media manager, strategic advisor and serial entrepreneur extends over more than fifteen years in leadership across multiple sectors, with a focus on music, marketing strategy and tactical team building. Donna Budica is co-founder/COO of Ten2 Media. With a degree in finance from The Wharton School and an MBA from USC Marshall, she leads business strategy and operations at Ten2 and its subsidiaries.
Ten2 Media is a rights management and content marketing company specializing in asset monetization, audience development and content optimization on YouTube. Ten2’s YouTube expertise and decades of music industry experience underpin its unique approach to maximizing revenue and bringing music to market for the world’s leading artists and labels.