Platforms music streaming They not only compete with each other to attract the largest number of subscribers in each territory in which they operate. Also, artists are an important niche for these services, since their works are what give life to each of the alternatives present in the market.
Apple Music has just made a big hit in this last respect. Through an open letter to their artists and other active participants in the music industry, they revealed that they pay roughly $ 0.01 per play.
Apple told artists to make uniform payments, without distinctions
The aforementioned Apple release was distributed via multiple channels to artists, record labels, and other rights holders. Later, The Wall Street Journal and other media, reported this information.
The letter, entitled Apple Music Insights: Royalties, highlights that the payments it makes for royalties to rights holders respond to a standardized rate, which does not make geographical distinctions or for promotional purposes. In exposing these points, Apple claimed to pay $ 0.01 per playback to the rights holders of each song.
We believe in the value of music and in paying creators fairly for their work. Since we launched the iTunes Store in 2003, we’ve helped millions of artists and songwriters make a living from music. As the discussion on reproduction royalties continues, we believe it is important to share our values. We believe in paying all creators the same fee, that a work has a value and that creators should never have to pay to present it.Apple commented at the beginning of his letter.
Among the shared justifications, the company pointed out that its business model is different from that of other companies in the sector, regardless of the distribution system applied in some of its direct competitors. Without going too far, in aspects like this the determination of don’t offer a free plan.
The comparison almost forced with Spotify
According to figures In the last quarter of last year, Spotify accumulated 345 million active users. Considering that Apple Music has only 72 million subscribers, the comparison between the two services is a good exercise to assess whether the proposed new tactic can help Apple to open a broader path in this market.
However, making a parallel between the two business models is difficult, since Spotify has more than one payment model.
According to the comments on the site Loud & Clear of the Swedish platform, which explains some details about the dynamics of the operation of the service, the billing of royalties varies depending on geographical factors. In particular, the number of subscribers and the advertising revenues of each territory directly influence the amounts paid to the rights holders of each musical work.
Despite sharing an approximation to its business model, the platform does not reveal figures. Unofficially, it has been said that the Swedish service has more than 800 different billing models.
Even without hard-figure endorsement, the numbers shared by Apple can be attractive compared to what artists know about the numbers. numbers of other similar platforms.
Especially for independent and self-managed artists, this news may arouse new interest on this platform, attracting the attention that Apple is looking for from them.