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Apple Music streaming revenue detailed in letter to artists

Brian Heater
·2-min read

Streaming revenue has been a longtime concern for musicians, especially those scraping by in the wake of an industry-wide implosion of record labels. Of course, a year that has made touring an impossibility has only brought those issues into starker relief as the primary revenue source for many has completely dried up.

Apple is hoping to clarify some of the major questions around streaming revenue in a letter it sent to artists. The note, reported by The Wall Street Journal, outlines a revenue that amounts to around double what Spotify pays out.

“As the discussion about streaming royalties continues, we believe it is important to share our values,” the company notes. “We believe in paying every creator the same rate, that a play has a value, and that creators should never have to pay for featuring music in prime display space on its service.”

The company’s comment is a clear shot at Spotify’s much more varied payment model. What that actually works out to at the end of the day, however, is a slightly more complicated question. Things start at around a penny-per-stream (though it can go down from there). That amount is paid out to rights holders -- be they record labels or publishers. It’s another in a long line of issues that have led many musicians to question the efficacy of intermediaries in 2021.

Spotify CEO Daniel Ek fanned the flames in an interview last year, stating, “Some artists that used to do well in the past may not do well in this future landscape, where you can’t record music once every three to four years and think that’s going to be enough.”

At the end of the day, it’s a battle of pennies -- or fractions thereof, for many artists. And it has become immensely difficult for mid-tier and truly independent artists to maintain a living as the world has shifted to a streaming model. Services like Bandcamp and Soundcloud have worked to make things more manageable for smaller artists, but the life of a modern musician remains a struggle -- especially in the age of COVID-19.