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.
What is unbelievable about this? Do you know what performers get paid when their song plays on a radio station?
ZIP, not one thin dime.
The publisher and songwriter get paid a cut that varies based on various factors but the actual performer doesn’t get a penny. I don’t see you skewering Clear Channel.
You judge the payment vs other streaming services, and that’s the only model you can judge it by. Until I see a comparison chart, being outraged over the pay scale is silly.
Lets do the math shall we? Apple Music is said to cost between $10 and $15 a month depending on the tier you use. So, lets see a typical song is 3 minutes long. Using spotify as a baseline, just because I could find some actual numbers on it, the claim is about 2 hours of music listening per day. So, that’t 40 songs per day listened to. The typical month is 30 days long, so that 1200 songs listened to per month... so lets just do some quick math here...
If you are the $10 tier and apple were to pay 1 penny per song you listened to, they would be losing $2 per subscriber per month just on the cost of the content... let alone the cost of actually running the business. 1/5 of a cent per month that drops the raw cost of the content to 2.40 a month. So that’s about 25% of the revenue is going to content costs, that’s not to me outrageous or stingy. Anyone who things it is, hasn’t run a business.
Apple is paying 100% of the infrastructure costs and providing the marketplace for these tracks to be heard at all. 30% of revenue isn’t unreasonable, especially when the publishers and artists get their 70% of revenue regardless of costs. That’s pretty standard in digital publishing.
So - here we “sit” on a board that is supposedly about “freedom”, Capitalism, etc....
Yet someone is singing one of the favorite Liberal hits - “Take it From the Rich”...Nice.