Explained: Costs & Other Income

Every music release or product generates both expenses and sometimes additional income streams.

Costs typically arise at different stages:

• Production recording sessions, mixing, mastering, artwork, and manufacturing (for physical formats).
• Marketing & Promotion press campaigns, radio plugging, social media ads, video production.
• Distribution & Sales digital distribution fees, shipping, warehousing, and retail margins.
• Operational legal, accounting, or administrative costs linked to releasing music.

On the other side, there may be income beyond direct sales:

• Marketing budgets contributed by partners (e.g. distributors, DSPs, brands).
• License flat fees for syncs, compilations, or other usage rights.
• Subsidies or funding from cultural institutions, grants, or sponsorships.

details allows you to manage both sides:

• Assigning and tracking costs directly to the corresponding release or product.
• Recording and reconciling additional income streams, ensuring they are included in royalty calculations where relevant. This gives a clear financial picture of each release or product.

► Costs

Costs represent all outgoing amounts that reduce the income of a release, product, or track. They can be created manually, imported via Excel, or generated automatically from royalty statements.

• Cost Groups: Defined under SETTINGS / ACCOUNTING, they structure your costs into categories (e.g. Marketing, Promotion, Manufacturing).
• Advances: A special cost group, always 100% recoupable.
• Recoupment: If costs need to be recouped against royalties, you can define the recoupment rules in the contract setup. More information in the ROYALTY section.

► Income & Other Income

Income normally comes from sales, streams, or licenses. In addition, Other Income can be managed to represent subsidies, sponsorships, or any type of additional funding.

• Income Groups: Defined under SETTINGS / ACCOUNTING, they structure additional income sources and can be assigned to releases and products.
• Contract Logic: As with costs, income can be added globally or assigned to specific groups, depending on the contract.

► Interaction in Catalog

The catalog structure defines where costs and income are placed and how they interact:

• Releases act as the central hub all financial flows are anchored here.
• Products (physical and digital) create costs and income that belong to them.

► Proofs

For both Costs and Other Income, you may upload proofs on the Release and Product level. These documents ensure transparency and provide traceability for internal use or for sharing with royalty partners or artist managements.

• Invoices and Documents: Attach supporting files directly to financial entries.
• Transparency: Enables partners to review the original documents behind costs or income.