Leaked Apple Music contract suggests early label revenue losses
Apple Music made a grand entrance into the streaming market on Monday, but the platform may have already found a first sinking point in the wider debate surrounding streaming royalties. Past the recent allegations of collusion, a leaked contract acquired by Digital Music News suggests that no license or royalty fees will be paid out during the service’s free trial or for accounts given out on a complimentary basis to industry folk and artists. What’s more, just 58% of revenues will go back to indie artists.
This could be a major first hurdle for Spotify’s newly revealed competitor. So much of the on-going streaming debate has rested on the subject of royalty payments. Whilst many have challenged Spotify’s pay-outs, the company reportedly pays out approximately 70% of its total revenue to rights holders: a number totaling $3 billion to date that rings as far more appealing than the leaked Apple numbers suggest. TIDAL already showed promising royalty payment capacity in the wake of its disastrous launch campaign, but the implications of Apple lacking in the pay-out department are sure to impact industry perception of the high-profile newcomer given the three months of lost revenue for label’s that is at stake.
Via: Digital Music News
Categories: News