PPD (Published Price to Dealer)

In plain English, it is the price paid by retailers (like record shops) to record companies, before the product is marked-up and sold to fans at the final retail price.

For example, if a vinyl's wholesale price is £15, but it is sold in a store for £25, an artist’s royalty will usually be calculated on the £15 figure, not the £25 paid by the customer.

PPD is the cornerstone of traditional physical product deals and download sales. While many modern digital streaming contracts use a "Net Receipts" model (paying a percentage of the actual money received by the label), traditional label deals and physical distribution agreements still rely heavily on PPD to determine how much money reaches the artist.

Where PPD applies, as well as the royalty rate, it is crucial check is whether your contract allows the label to reduce the PPD figure before calculating your percentage.

Common examples include:

• packaging deductions;
• free goods allowances;
• discounts, reserves, and returns.

These deductions will reduce the PPD royalty payable to you. Ensuring your contract caps or eliminates these deductions is the key to protecting your physical revenues.