A little over a year after RoyaltyShare entered the digital-distribution business, the company is exiting the market, paidContent has learned. When it introduced its digital-distribution service last January, RoyaltyShare said it would provide a web-based platform for record labels and niche distributors to interact directly with digital retailers, bypassing the need to go through large digital aggregators such The Orchard (NSDQ: ORCD). The company also said digital distribution would compliment its royalty service, which helps entertainment companies calculate royalties from digital sales.

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But spokesman Mike Kelly said the economy had forced the company to de-emphasize the service, which is no longer taking on new customers. Two of RoyaltyShare’s 30 employees have been let go—and other employees are moving to the company’s royalty and sales management operations. While RoyaltyShare provides customers with analytical data on their digital sales, a company like The Orchard also woks with stores to market new music releases. With labels operating with skeleton crews these days, some may see the fuller service option as a better proposition.