Create Music Group

Distribution Infrastructure & Platform Coverage

Label Engine operates as Create Music Group’s B2B distribution arm, delivering content to major DSPs including Spotify, Apple Music, Amazon Music, YouTube, Tidal, Deezer, and Pandora. The platform processes 10+ million tracks and monetizes 25-30 billion streams monthly across the broader Create Music Group ecosystem. Technical infrastructure relies on Astronomer Airflow-based data pipelines managing 600+ DAGs for real-time artist dashboards and revenue forecasting.

The company pioneered daily revenue reporting capabilities in January 2019, providing real-time estimates from YouTube, Spotify, and Apple Music rather than requiring clients to wait 30-90 days for standard industry reporting cycles. Tipalti integration automated accounts payable systems, reducing payment processing from several days of manual work to one hour and eliminating 36 days of annual payment administration. YouTube revenue payments process within 48 hours of receipt, significantly faster than industry-standard quarterly cycles lasting 90+ days.

The platform’s metadata handling system flags releases with errors before distribution, though specific rejection rates and appeal timelines remain undocumented. Delivery error messages indicate issues including format problems, metadata requirements, and platform-specific technical specifications. The infrastructure supports white label capabilities and API access for qualifying enterprise clients.

YouTube Content ID Administration & Copyright Claims

Multiple documented cases describe false YouTube Content ID claims filed by Label Engine affecting creators who did not use Label Engine-distributed content. One creator reported receiving a copyright claim “for a song that has nothing to do with my content,” discovering the registered song attributed to Label Engine despite no relationship. The claim stated Label Engine was “sending false Content ID claims to creators and making illegitimate profit.” Another creator documented a claim based on royalty-free public domain samples, where Label Engine’s system flagged the video incorrectly. The claim persisted for weeks, then dropped at the final moment of the 30-day dispute window, but Label Engine retained all revenue generated during the claim period.

Artist Partner Group filed federal lawsuit in January 2025 alleging Create “engaged in brazen thievery” by actively searching YouTube for music with unclaimed rights and filing false Content ID claims for APG-owned works. The complaint alleges Create uploaded APG-owned recordings to Spotify, Apple Music, and YouTube without authorization, signed contracts with artists already under APG agreements, and plagiarized content. The lawsuit lists 143 recordings and 31 compositions as violated, seeking income from infringed works plus punitive damages. Create responded calling the allegations “legal theatrics” from a “legacy player struggling to adapt to digital age.”

Billboard reported in 2022 that YouTube’s Content ID system creates conditions “ripe for abuse” with minimal oversight, citing Create as one company “frequently collecting royalties” while facing revenue-sharing disputes. Create’s CEO explained some revenue splits are “adjusted later” due to “unaccounted samples or overlooked collaborators,” attributing multiple claims to artist teams changing managers.

Payment Processing & Revenue Reporting

Label Engine implemented monthly payment cycles through Tipalti automation, processing 25,000+ artists monthly with YouTube revenue delivered within 48 hours of platform receipt. The system reduced manual payment work from multiple days to one hour and eliminated 36 days of annual processing tasks. Daily revenue reporting provides real-time estimates from YouTube, Spotify, and Apple Music, allowing labels to track earnings continuously rather than waiting for quarterly statements.

However, documented payment issues include deferred payments appearing in Tipalti systems with dates set before client accounts were created. One client described years without receiving promised payments, then being directed to set up Tipalti accounts where “they put payment as deferred with a date you never even had the account.” Support inquiries about deferred status received responses stating teams “didn’t know why my payment said deferred” and attributing issues to external invoice sources. Supervisor escalation failed after promises of contact were not fulfilled, culminating in directives to stop messaging.

Label Engine experienced payment timing issues in May 2017 when stores including Beatport and Spotify did not report on schedule, causing delays in statement delivery. The company modified policy to send statements within seven days of month start instead of waiting for the first Monday, acknowledging store-side reporting delays affecting payment timing. Revenue reporting discrepancies appear in client audits, with one stating “the numbers simply do not add up” and describing “staggering” discrepancies between reported views and actual payouts. These patterns undermine trust in reporting accuracy and create cashflow management challenges for label operations.

Client Support & Account Management

Support quality feedback shows significant responsiveness gaps affecting business operations. One label client reported that “responses from the support team are often delayed, and at times, I haven’t received any response at all,” describing frustration “especially when urgent issues arise.” The client noted the distribution platform itself functions well, but support failures create operational friction. Another documented case involved multiple email attempts to resolve payment deferrals, with support unable to explain why payments showed deferred status and attributing invoices to external sources despite the company facilitating the Tipalti account setup. Promised supervisor escalation failed when supervisor Kenny never made contact, ending with instructions to cease communication.

Support failures appear particularly acute during critical business issues including payment deferrals, false copyright claim disputes, and catalog takedowns. Response times extend beyond reasonable business cycles, with some clients reporting zero response to urgent support tickets. The support infrastructure lacks documented service level agreements or escalation procedures for time-sensitive issues affecting label cashflow or distribution continuity.

Business Model & Operational Concerns

Create Music Group operates a hybrid structure combining neutral B2B distribution services through Label Engine with direct label ownership including Monstercat, !K7, deadmau5’s Mau5trap catalog, Cr2 Records, and others. This creates structural conflicts where the company simultaneously serves external label clients while competing through owned catalog acquisitions. The aggressive acquisition strategy deployed $55+ million for deadmau5’s catalog, $50 million investment commitment for Monstercat, and multiple other label purchases throughout 2024-2025.

Revenue terms remain client-specific without publicly disclosed standard commission rates. Contract termination provisions allow the company to terminate for convenience with 60 days notice or immediately for breach, while retaining rights to collect royalties from Term-period exploitations for up to one year post-termination. Return reserves of 40% can be held for up to 12 months after contract expiration, potentially creating extended cashflow gaps during exit transitions.

One label client reported catalog takedown “because the label wasn’t to their ‘standards’ despite having millions of streams, plays, views etc every month,” questioning whether distributors should act as curators rather than neutral service providers. The platform’s approach to catalog standards enforcement lacks transparency regarding threshold requirements, appeal processes, or advance warning systems before takedowns affecting monetization.

Established Label Client Experiences

Kannibalen Records and Insomniac Music Group report positive outcomes, stating Label Engine “earned our trust through consistency and transparency” while growing from one label to twenty imprints. The client praised Label Engine for streamlining operations by handling administrative details and noted the team “really care and go above and beyond to make sure any of our requests are taken care of.”

Disciple Records described Label Engine as “a game changer,” stating “administration work is fun, quick and easy” and praising the ability to “streamline our processes to focus on growing our business.” DatPiff executives characterized Create Music Group as “the only company out there that can keep up with us” based on speed and forward-thinking operations.

One label client using Create for YouTube monetization reported approximately three times revenue increase compared to their former multi-channel network, stating “their primary role has been to ensure that I’m receiving all the benefits from YouTube videos that feature my music.” While acknowledging automated Content ID handling, the client noted Create “also conduct manual searches that have uncovered additional instances” of unauthorized use.

These testimonials concentrate in electronic music and EDM segments where Create’s acquisitions of Monstercat, !K7, and deadmau5’s catalog strengthen genre-specific expertise. The positive feedback correlates with larger established labels operating multi-imprint structures rather than independent single-label operations.

DSP Relationships & Market Position

The company maintains direct relationships with major DSPs including Spotify, Apple Music, Amazon, and YouTube, though specific preferred partner status verification remains undocumented beyond internal claims. Daily reporting capabilities from YouTube, Spotify, and Apple Music indicate technical integration supporting real-time data access, distinguishing the infrastructure from distributors operating on delayed reporting cycles.

The $1 billion valuation achieved through $165 million Series investment from Flexpoint Ford in June 2024 demonstrates investor confidence in the platform’s scale and growth trajectory. The company operates globally with 201-500 employees and maintains five recording studios at its 22,000 square foot Hollywood headquarters, providing integrated services beyond distribution including publishing, sync licensing, and content network operations through Flighthouse’s 300+ million social media followers.

Create’s vertical integration strategy combining distribution, label ownership, publishing administration, and media networks positions the company as a comprehensive entertainment infrastructure provider rather than neutral distribution-only service. This structure creates competitive advantages through owned catalog monetization and media promotion capabilities, but simultaneously generates conflicts of interest when serving external label clients competing for the same playlist placements, editorial opportunities, and platform partnerships.