Apple Music told the artists that it pays a penny in cash in a letter reviewed by The Wall Street Journal.
The revelation, made in a letter to artists, delivered on Friday through the service artist’s dashboard and sent to labels and publishers, is part of a growing effort by music streaming services to show they are friends with artists. For Apple Inc., it can be seen as a fix for Spotify Technology SA, which last month shared some details about how it pays the music industry for the streams in its service.
Apple’s penny-per-stream payment structure – which experts in the music industry say may decline – is almost double what Spotify, the world’s largest music streaming service, pays music rights holders on flow. Spotify pays on average about a third to half a penny per stream, although its larger user base generates many more streams. Apple payments come from monthly subscription revenue from users.
Artists, managers and lawyers, who are still spinning due to the loss of tournament revenue during the pandemic, have demanded higher payments for music streaming, which has grown rapidly in the last year. Many fans have joined the force to increase artists’ compensation.
Apple last reported over 60 million music subscribers in June 2019. Spotify leads the industry with 155 million subscriptions, out of a total of 345 million active users, including those who listen to the level of advertising support for free. Amazon said early last year that its music subscription offerings had 55 million subscribers.