Apple Song Reveals Much Pays When?
- Philip Martin
Apple Music recently disclosed in a letter to its artists that for every song stream, the company pays each musician one penny in United States currency. The payment rate is almost twice as high as the rate at which payments are made by Spotify. The Wall Street Journal reports that Apple Music’s average per-stream compensation occasionally falls below a penny, but it is still clearly more than Spotify’s average payout of half a cent in US currency for each stream.
Despite Apple’s announcement of a more generous payment, Spotify continues to lead Apple Music in the number of paying subscribers. Spotify said that it has 155 million premium users during the fourth quarter of 2020, bringing its total number of members to over 345 million. Apple said in 2019 that its music service has more than 60 million active users.
Users of competing services, such as Apple Music and Tidal, stream far less music on average than users of Spotify. The latest shareholder distribution that the firm made, which was somewhere around $6 billion USD last year, is a reflection of the corporation’s status as a key revenue engine in the music industry.
- Apple also mentioned in its letter to artists that it distributes 52% of the money generated by subscriptions to its music streaming service Apple Music to record companies.
- This is in contrast to Spotify, which gives rights holders two-thirds of the income they generate.
- According to the projections made by the Recording Business Association of America, streaming will account for 83 percent of the total income generated by the music industry in the year 2020.
Throughout the course of the year, the COVID-19 epidemic has caused many of the artists’ followers to demand more compensation from streaming services and more transparency from the services themselves. In other music-related news, it has been claimed that DMX’s memorial service would be livestreamed.
How much money do you make from a song on Apple Music?
Although royalties from streaming services are determined based on a stream share basis, a play does still have value. Our average fee per play is $0.001; despite this, a play still has worth. This value differs depending on the subscription plan as well as the nation or location, but in 2020 it was an average of $0.01 for Apple Music’s individual priced subscriptions.
Do artists get paid when you listen on Apple Music?
The most recent issue of the Apple Music newsletter: Part one – This update, which is part of a new series of newsletters, examines the process by which creators receive royalties from Apple Music as well as the progression of these earnings over the course of time.
- We hold the belief that music has worth and that creators should be compensated appropriately for their work.
- Since the debut of the iTunes Store in 2003, we have been able to assist millions of musicians and songwriters in establishing sustainable careers in the music industry.
- As the debate around streaming royalties continues, we feel it is necessary to communicate the core principles that guide us.
We hold the beliefs that every creator should be paid at the same rate, that each play has its own worth, and that artists should never be required to pay for showcasing. Every label receives the same headline rate of 52 percent from us. We pay the same headline rate to all labels, in contrast to certain other services, who pay some independent labels a rate that is far lower than the amount they pay large labels.
Because of this, musicians are free to choose how their music is distributed, secure in the knowledge that Apple Music will pay the same rate. Whether you want to sign with a label or remain independent, we think that your music deserves to be heard. Every component is subject to the same headline rate that we pay.
There wouldn’t be any records if there weren’t any songwriters. For this reason, we have paid every publisher and licensor the same headline rate throughout all of the different countries. This is another reason why we have spent millions of dollars to improve publishing procedures in order to ensure that composers are paid as promptly as is humanly feasible.
MBW’s take: The fact that Apple has now publicly revealed that it pays recorded music rightsholders a net revenue share equal to 52% of its total income is one of the revelations that came from this section of the letter (“all labels”). This is the exact same percentage of Spotify’s net revenue that the streaming service now distributes to the major record companies.
In 2017, Spotify successfully renegotiated its headline rate, bringing it down from 55% to 52%; it appears that Apple Music did the same thing in its most recent round of negotiations, which took place in the same year. (In addition to this 52% share, payments are made to music publishers and composers; on average, they claim another 10-13% of each service’s net income.) Having said that, Spotify and Amazon are both presently asking for a fee increase for music publishers and composers in the United States.
href=”https://www.musicbusinessworldwide.com/companies/amazon/ “Amazon, Google ” href=”https://www.musicbusinessworldwide.com/companies/google/ “Google, as well as SiriusXM,” which may be found at the following URL: https://www.musicbusinessworldwide.com/companies/siriusxm/ “SiriusXM, Apple Music has decided not to contest this increase in price.) Apple’s primary argument in the above paragraph is one that MBW will investigate more in the next paragraph: namely, that other prominent streaming services do not give one basic net revenue% rate to all labels, regardless of whether they are large or independent.
According to what we have heard, the issue with Spotify is a tricky one. Some independent artists allege that they receive a rate that is lower than 52% in terms of its effective (rather than headline) rate because of specific contractual deductions and reductions.
Do I get paid when someone buys my song on iTunes?
It’s possible that Apple would keep the remaining $3.70, while the record business would receive $5.35. Each unique song purchased from iTunes results in the artist receiving around $0.09 in revenue on average. To put that into perspective, in order for musicians to receive the federally mandated minimum wage, they would need to sell around 12,400 songs every single month.
How do artists get paid on Apple Music?
You will receive a payment equal to a proportionate share of Apple Music’s subscription revenue each month when a subscriber streams your music. This payment is determined based on the terms outlined in TuneCore’s blanket agreement with the store (this typically does not include streams made during a subscriber’s free trial).
How much does iTunes charge to sell your music?
HOW MUCH DO FEES FOR HAVING MUSIC AVAILABLE ON ITUNES COST? Getting your music on the most prominent streaming services and retailers across the world has never been easier, more affordable, or quicker than it is with TuneCore. Using TuneCore, you can submit your music to iTunes and start selling it for as little as $9.99 for a single or $29.99 for an album or extended play (EP).
How do people make money on Apple Music?
The process by which musicians are compensated by Apple Music and Spotify is straightforward. They put all of the money made from users into one large pool, whether it be from adverts or membership fees. The money from that pot is then distributed according to the overall proportion of streams that each artist got.