Posted on 06/25/2015 6:02:49 AM PDT by Mad Dawgg
The likes of Merlin, AIM and IMPALA have endorsed the Cupertino giant’s new offer to the indies, after Eddy Cue did an about-turn and offered them royalty compensation for the platform’s upcoming three-month trial.
But the question on the lips of the industry is a familiar one… how much?
Reports suggest that the indies are receiving the equivalent of $0.002 per stream from Apple, and MBW’s sources corroborate this.
But there’s an important extra detail, numerous indies have told us: this is actually a pre-tax figure, certainly in Europe.
That means that in the UK, for instance, the $0.002 would see a further 20% knocked off in VAT – down to $0.0016.
And it will be even worse news in the likes of Ireland (24%), Norway/Sweden (25%), Spin (21%) and Italy (22%).
We know that Apple is paying 58% of Apple Music income to labels in the US – with 13.5% going to publishers – so some very rough maths would suggest that independent publishers would get somewhere around $0.00047 per stream for the three-month free trial.
(Excerpt) Read more at musicbusinessworldwide.com ...
Have you ever been to Spin?
Well, I kinda like the music........................
The ladies are insane there.
And they sure know how to use it!...............
Doing the math...at $.002 per stream, at one million streams, that’s $2000.
Unless the song is big hit, most won’t get even close to a million streams.
always dizzy and couldn't get my bearings...
I would like to know how much Apple makes. Without the music provided they would not make anything. Do Apple execs laugh when they come out with such a low low payout? It is like the old days when the tv actor was paid $300 a week for a hit show while the studio rakes in millions.
I just put in new bearings in my car’s rear end.
They wouldn’t spin any more......................
This is ludicrous. Apple is essentially getting their product free, and while the ‘trial period’ is only 3 months, many will download everything they can during that period and then walk away after the period is over, leaving the artists without any real revenue...................
Streams is like the radio. It costs anywhere from 80 cents to $1.50 to download a song, where often streaming is free, or really, really cheap (iTunes radio is free, Pandora costs what $9/month - for how many songs?). If Apple is paying per stream but not charging for it, they're doing the artists a favor.
For most indie music, they are overpaying.
As the article states the first three months (trial period) is free after you will pay 9.95 a month IIRC.
So... the question I have is... how much do the indies normally get for the play of their music via Apple ?
And if it's anything like cable TV pricing, after a year it will go up to 19.95 a month .
Okay, let's break that down. Say you get folks who stream 2 hours/day. Average song is 5 minutes. 120/5 is 24. So 24 songs a day for a total of 720 songs/month. Cost per song is $0.0138 for the consumer. Now get someone who streams 4 hours a day, cost per song drops to $0.0069. Someone who streams 8 hours a day pays only $0.00345/song. So, yeah, Apple is making bank on these guys, even when someone is streaming 8 hours/day. Meet the new boss, same as the old boss.
So that's 1/5 of a cent. Five streams and you get a whole penny, before taxes.
The old Record Company Rape was better. At least they would pay to have your teeth fixed.
Thanks downloaders, enjoy your new music industry where only one of Rod Stewart’s 47 illegitimate kids gets a break.
They are said to be worth of a half TRILLION dollars.
And they pay out $0.002 per stream for free trial… BEFORE tax
Unbelievable....
Music fans have no idea how the industry works. For example do you think they know how much it costs to have your act featured on a late night TV show? They truly live in a universe of horse_****. It’s $60,000! That’s it. That’s all there is to it. You want your band to be on late night TV? It’s 60K cash under the table. Straight up. No fans, no hits, not likes on Facebook, none of that. It’s 60K. That’s all!
My wife’s first job out of college was sitting at a desk in Rockafeller Center writing Astro-Turfed BIO’s for one of the Major Record companies. I was on tour with one of my bands and we’re on the phone together laughing because she was using my “road stories” to write up FAKE histories for some kid whose Father was the CEO for a “ticket selling service”.
It’s all a big fraud. All of it.
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