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Apple Music today told independent record labels that it is launching a $50 million advance royalty fund to make sure that artists get paid amid the ongoing pandemic.

applemusic.jpg

In letters sent out to record labels that were seen and shared by Rolling Stone, Apple said that livelihoods are at risk and that it "wants to help."
These are difficult times for the music industry globally. Livelihoods are at risk, with multiple sources of income that our industry relies on vanishing overnight. Apple has a deep, decades-long history with music, and we are proud to be in close partnership with the best labels and artists in the world. We want to help.

Today Apple Music is announcing the creation of a $50 million-plus fund available as advances on future royalties to independent labels, to help them pay artists and maintain operations.

Royalty advances will be offered to independent labels with a direct Apple Music distribution deal who meet a minimum quarterly threshold of $10,000 in Apple Music earnings. Each advance will be based on the label's past earnings, and will be recoupable against the label's future earnings. This offer is in good faith that labels will channel funds to artists and label operations based on financial need.

Label agreements for the advances will be posted in iTunes Connect, in the Agreements, Tax, and Banking module, on April 10. To receive an advance you will need to accept the Royalty Advance agreement and be on the latest Apple Music distribution agreement before May 8, 2020, at 11:59 p.m. PDT.

We hope that together we can help provide stability for artists by sustaining an enduring and vibrant music sector. If you have additional questions, please contact us.
Independent record labels that earn at least $10,000 in quarterly Apple Music earnings will qualify for royalty advances, and a direct Apple Music distribution deal is required.

According to Rolling Stone, the music industry has been struggling in recent months, as live music has been put on hold and many concert tours and major music festivals have been postponed or canceled. Music streaming is also down and artists are pushing back release dates for albums.

Article Link: Apple Music Launches $50 Million Advance Royalty Fund to Make Sure Independent Labels Can Pay Artists
 
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phenste

macrumors regular
Sep 16, 2012
209
683
edit (again): I originally said this boils down to how they define “independent labels” but it’s pretty clear. Just hope that labels channel funds properly; this is an amazing thing on Apple’s part.
 
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kyjaotkb

macrumors 6502a
Nov 20, 2009
825
596
London, UK
So indie labels with no negotiating power have to accept Apple’s ‘standard agreement’ to be eligible? This looks a bit like an opportunistic move from an Apple trying to disrupt the business of distributors (Believe, The Orchard, ADA, Caroline...) but, surely, it’s better for labels in the long term to stick to their distro deals rather than sign with Apple directly and on unfavourable terms?
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This is awesome. And why I’ll continue to support Apple Music over other streaming services. I can’t see Spotify doing this if they’re still in the negatives and not turning profits as is, haha.
Actually, you are welcome to go read their quarterly financials, but Spotify pays minimum guarantees to the music industry and has done so for the last ten years. This is the first time I ever hear of Apple doing it
 

mudflap

macrumors 6502
Aug 24, 2007
466
909
Chicago
So indie labels with no negotiating power have to accept Apple’s ‘standard agreement’ to be eligible? This looks a bit like an opportunistic move from an Apple trying to disrupt the business of distributors (Believe, The Orchard, ADA, Caroline...) but, surely, it’s better for labels in the long term to stick to their distro deals rather than sign with Apple directly and on unfavourable terms?
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Actually, you are welcome to go read their quarterly financials, but Spotify pays minimum guarantees to the music industry and has done so for the last ten years. This is the first time I ever hear of Apple doing it

Those distributors are more than welcome to try to sell their music on their websites.
 

robjulo

Suspended
Jul 16, 2010
1,623
3,159
The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.

This is awesome. And why I’ll continue to support Apple Music over other streaming services. I can’t see Spotify doing this if they’re still in the negatives and not turning profits as is, haha.
 

jlc1978

macrumors 601
Aug 14, 2009
4,122
2,554
The labels will have to use the funds properly because it is merely an advance. If they misuse it, they will have to pay artists later from their pocket.
Or just stiff them...
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Actually, you are welcome to go read their quarterly financials, but Spotify pays minimum guarantees to the music industry and has done so for the last ten years. This is the first time I ever hear of Apple doing it
This doesn't sound like a minimum guarantee sinc eit is an advance on future payments.
 

ericwn

macrumors G4
Apr 24, 2016
10,808
8,800
This is awesome. And why I’ll continue to support Apple Music over other streaming services. I can’t see Spotify doing this if they’re still in the negatives and not turning profits as is, haha.

Haha? I agree Apple’s doing a good thing here but what exactly are you laughing about, that Spotify isn’t turning in the same profits?
 

V_Man

Cancelled
Aug 1, 2013
654
1,122
The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.
This 1000X. To Apple you are a $. Nothing else. No different from any other company. The fact that people think Apple cares about shows how good the PR Dept at Apple is.
 

NotAPeoplePleaser

macrumors newbie
Mar 30, 2020
3
6
This 1000X. To Apple you are a $. Nothing else. No different from any other company. The fact that people think Apple cares about shows how good the PR Dept at Apple is.

I don't understand this. I think they were very benevolent for doing this, and it makes for good business.

The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.

And yes, they do care, but when you're a multibillion-dollar public company, it becomes about an ethos, an ecosystem, and the shareholder (owner). Apple has a wonderful mix of conservatism/responsibility, stability, and delivery. Their product line is tight, and you probably don't go a day without using their products. I'm happy to criticize when it's due, but it's not due here.
 

Rainshadow

macrumors 6502
Feb 16, 2017
402
870
This 1000X. To Apple you are a $. Nothing else. No different from any other company. The fact that people think Apple cares about shows how good the PR Dept at Apple is.

Really not a fair suggestion. Of course some people feel a connection to a company. Though I doubt many of us feel the company cares specifically for us. It’s more about the direction of products and the value gained from owning them that makes the connection. Regardless of marketing, my phone, watch, AirPods, and Mac are tightly connected and their connectedness changes my daily life on dozens of small aspects.

It’s a closer connection than a football team which I’ve never understood. You have NO claim or connection with them but some people are obsessed.

And I’m glad they consider $. It’s capitalism. better products = more money. I’m cool with that.

but feel free to maintain the cynicism.
 

PickUrPoison

macrumors G3
Sep 12, 2017
8,131
10,721
Sunnyvale, CA
Not at all. This is not a charitable action. It is funds that Apple would have to pay anyway. They are just paying a bit early at a possible cost to Apple of a few dollars of lost interest.
So Spotify, Amazon and YouTube Music are doing the same thing, right? Wrong... though they may yet be shamed into it. Hopefully.
 

Gasu E.

macrumors 601
Mar 20, 2004
4,846
2,877
Not far from Boston, MA.
This 1000X. To Apple you are a $. Nothing else. No different from any other company. The fact that people think Apple cares about shows how good the PR Dept at Apple is.

Ah, you are so wrong, not just about Apple, but about many corporations. I've worked in companies like Apple, and the company Kool-Aid is about loving your customer. And it's real-- if you don't feel a real strong affinity for your customers, you do a crappy job, and nothing works. If you don't learn to love your customers, you're not going to have much of a career, because the guy who does go that extra mile for the customer is going to whip your ass.
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Expos of 1969

Contributor
Aug 25, 2013
3,648
7,000
So Spotify, Amazon and YouTube Music are doing the same thing, right? Wrong... though they may yet be shamed into it. Hopefully.
What others may be doing or not doing has absolutely no bearing on how one classifies Apple's action.
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Ah, you are so wrong, not just about Apple, but about many corporations. I've worked in companies like Apple, and the company Kool-Aid is about loving your customer. And it's real-- if you don't feel a real strong affinity for your customers, you do a crappy job, and nothing works. If you don't learn to love your customers, you're not going to have much of a career, because the guy who does go that extra mile for the customer is going to whip your ass.
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So it was Apple's "real strong affinity" for its customers which caused it to foist defective keyboards on its fan base for almost four years? I shudder to think what Apple may have done if it had a real weak affinity for its customers:eek:
 
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PickUrPoison

macrumors G3
Sep 12, 2017
8,131
10,721
Sunnyvale, CA
What others may be doing or not doing has absolutely no bearing on how one classifies Apple's action.
Not really. We can classify it as a highly considerate action, compared to all the others. We can say that Apple alone cares enough about indie labels to advance them money to stay in business and pay their artists. And we can even say Spotify, Amazon and YouTube Music can’t be bothered to give a crap. They’d rather keep their money in the bank, thank you very much.
 

DeepIn2U

macrumors G4
May 30, 2002
11,276
5,506
Toronto, Ontario, Canada
So indie labels with no negotiating power have to accept Apple’s ‘standard agreement’ to be eligible? This looks a bit like an opportunistic move from an Apple trying to disrupt the business of distributors (Believe, The Orchard, ADA, Caroline...) but, surely, it’s better for labels in the long term to stick to their distro deals rather than sign with Apple directly and on unfavourable terms?
[automerge]1586302186[/automerge]

Actually, you are welcome to go read their quarterly financials, but Spotify pays minimum guarantees to the music industry and has done so for the last ten years. This is the first time I ever hear of Apple doing it

by 'minimum guarantees' do you mean what Spotify MUST pay to artists and PMO's by virtue of doing day/day business - like all other streaming companies including Apple iTunes & Apple Music? Seems like a misuse of definition being used here, so if you can clarify that would be all well and good. Thx
 

PickUrPoison

macrumors G3
Sep 12, 2017
8,131
10,721
Sunnyvale, CA
So indie labels with no negotiating power have to accept Apple’s ‘standard agreement’ to be eligible? This looks a bit like an opportunistic move from an Apple trying to disrupt the business of distributors (Believe, The Orchard, ADA, Caroline...) but, surely, it’s better for labels in the long term to stick to their distro deals rather than sign with Apple directly and on unfavourable terms?
Are the Apple terms unfavorable? Not being a music industry attorney, I wouldn’t know the first thing about how to interpret the various clauses.

That industry is famous for having agreements that seem to be saying something favorable, but in reality actually ensure the other party is getting royally screwed. I would (like to) think that’s not how Apple rolls.
 

DeepIn2U

macrumors G4
May 30, 2002
11,276
5,506
Toronto, Ontario, Canada
The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.

Typical internet battle cry here, but I'll post a humble rebuttal of opinion.

Curious ... what brand 'Shirt, Pants/shorts, underwear, socks, shoes/sneakers, jacket/coat, smartphone, mattress, bed, dresser, speakers, TV, gaming system, A/C (if not centralized) and other appliances that you ... OWN, Wear, purchased, etc? Heck what blunt or liquid poison do you consume?

I'm willing to bet you did not make all of them and I'll bet you have a preference for them all as well. Brands lately may not 'care about any one person' yet they DO pay big attention to anyone cause just 1 passionate person can boost brand name recognition or destroy or set-off a cascade of reduced revenues or destroy a brand.

Google got very popular amongs I.T. reps long ago by using that catch phrase 'google it' - since nobody new about their web-crawling power until used or referenced by stating/placing/sharing confidence in their brand. Apple has done it for years (ever wonder WHY Starbucks has so many mac users across Canada/USA? Look at a WWDC where Jobs shown off the original MBA or MacBook Unibody at an outdoors coffee shop).

Brands ... despite anyone's distast for them ... have us.
 

RumorConsumer

macrumors 68000
Jun 16, 2016
1,535
1,032
Ah, you are so wrong, not just about Apple, but about many corporations. I've worked in companies like Apple, and the company Kool-Aid is about loving your customer. And it's real-- if you don't feel a real strong affinity for your customers, you do a crappy job, and nothing works. If you don't learn to love your customers, you're not going to have much of a career, because the guy who does go that extra mile for the customer is going to whip your ass.
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Now I’m requesting to be loved in the form of bug fixes for OS X!
 
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