Rarely do platforms showcase how much of a profit they and their artists make. And not many people paid attention because it is complicated.
But as an indie artist, these numbers have to be important to you. While it may not seem like it pertains to you because you are just starting out, it is actually quite the opposite. As full of jargon as it may be, there is a reason why these companies show this off. And while yes it showcases their “values” and how important their artists are. This is a way for you to learn how to keep track of that royalty
A royalty is a payment you receive (sometimes 10%-20%) when you sign a contract that allows a song to be shared with others. Depending on your contract the rates may change, but the important key here is that you will be getting paid. How much, that depends on what you signed off for and for how long.
Now with Apple and their recent announcement they have stated that “Our average per play rate is $0.01.”
While this does not mention other sites like Spotify or Youtube Music, this is still a behind-the-scenes look into Apple Music.
While .01 as a rate may not sound like it is enough, the Wall Street Journal had much to say about this. In their article, they stated that while the rate may sound low, it is actually quite high considering the pay is by a stream. The “penny-per-stream” system is actually a lot bigger and more than other music streaming providers.
This has caused a huge debate within other media. In which many suggest that this can be a very fan-based control. So the more fans stream the more made, while the less streamed the less made. Others have also suggested that streaming rates will be unfair. When comparing the popular artists versus the indie artist, there will be a bias.
There has also been a controversy between other streaming services and Apple Music. Stating that with this information now in the open it is now possible to know exactly how distributions can be unfair.
The Important Apple Music Points
But the key points in the recent letter are as follows:
- The 52% headline rate to all labels. Meaning that no matter what label signs you up or signs up with Apple, or even if you want to be independent, everyone will be getting the same rate.
- When they mean everyone, they mean everyone. This includes songwriters, publishers, licensors, everyone will be included in this rate.
- They have looked at other options, and many have shifted the importance to those who help create their music. All creators are important to them, no matter what your role was you will be noticed.
Regardless of where one stands with the controversy or what to believe in. Apple Music has made an interesting inside look at where they stand in the world of music and artistry.
If you would like to read more on indie artists and how they make money you can read this here.
If you want to read the official article you can click here posted by the Washington Post.