Continued Distribution Fee in Velveteen
Updated June 22, 2026
The continued distribution fee (CDF) is a small monthly charge that accrues when your account has no active paid plan but your catalog is still live on DSPs. It is recovered from your royalty balance, never charged to a card, and never drives your balance below zero.
When you cancel your Velveteen plan, your catalog can remain on streaming platforms and keep earning royalties. The continued distribution fee covers the cost of maintaining that distribution. It accrues each month and is offset against incoming royalties automatically.
How the fee accrues
The fee equals the current monthly price of the entry-level paid plan. It accrues for each calendar month your account is inactive but your catalog remains distributed.
Velveteen offsets incoming royalties against your outstanding CDF balance before crediting the remainder to your available payout balance. The fee is never charged directly to a payment method.
Tip
Fee statuses
Accrued
The fee has been added to your account for the period. It has not yet been recovered from royalties.
Recovered
Royalties have been applied and the fee has been fully offset. No remaining balance is owed for this period.
Extinguished
Your catalog was taken down before the fee was fully recovered. The unrecovered portion is forgiven. Only the portion already recovered from royalties remains on record.
Voided
The fee was reversed before recovery, typically due to an account correction. It does not affect your balance.
What happens if you take down your catalog
If you take down your catalog while CDF fees are accrued, the unrecovered portion of those fees is extinguished. You owe only what has already been recovered from royalties, not the full accrued amount.
Your royalty balance at the time of takedown is credited normally, less any amount already recovered against fees.
Heads up
Frequently asked questions
How much is the continued distribution fee?+
The fee equals the current monthly price of the entry-level paid plan. Check the Velveteen pricing page for the current rate.
Will Velveteen charge my card for the fee?+
No. The fee is recovered from earned royalties only. It is never charged to a payment method and will not drive your available balance below zero.
Does subscribing to a paid plan clear the accrued fees?+
Subscribing stops future accrual. Fees already accrued are still recovered from royalties as they arrive. A new subscription does not forgive past CDF balances.
Where do I see my accrued fees?+
Your royalty balance view shows the fee offset applied to incoming royalties. Contact support if you need a detailed breakdown of accrued and recovered amounts.
Can I avoid the fee?+
Yes. Maintaining an active paid plan prevents CDF accrual. If you cancel but want to keep your catalog live, the fee accrues until you re-subscribe or take down your releases.
Related articles
Fees & royalty credit
Direct sale fees, continuing distribution fees, payout fees, and converting royalty balance into account credit.
Balances & payouts
Available balance, payout method, payout email, payout minimums, requests, cancellations, and payout history.
Billing & subscriptions
Choose a plan, start Stripe checkout, manage your subscription, update payment methods, and view invoices.