Apple’s recent announcement of providing additional royalties for music that supports the “spatial audio” function on Apple Music has sparked controversy and dissatisfaction among independent record companies. The move, aimed at encouraging record labels to provide supported sound sources, has caused smaller music publishers to voice their concerns, saying that the increased royalties will ultimately cut into the income of independent artists.
Under the new initiative, Apple Music will offer a royalty rate that is 10% higher than normal for music with “spatial audio” support. However, the calculation method involves sharing the proportion of subscription revenue, which means that while royalties for “spatial audio” music will increase, the income allocated for regular music will be reduced. This has raised concerns among independent record companies such as Beggars Group, Secretly Group, and Partisan Records, who argue that this will adversely impact the income of independent artists.
Furthermore, reports have revealed that producing a “spatial audio” version of a song costs an additional $1,000, while producing an entire album in this format can cost around $10,000, with the potential for even higher expenses when updating original tracks. Apple’s goal behind promoting “spatial audio” is evident, as their upcoming products, such as Vision Pro and future AirPods, will support this new format, and having more supported music will also allow them to better compete with rivals such as Spotify.
With the recent backlash from independent record companies, Apple has yet to respond to the criticism. However, it is clear that the introduction of “spatial audio” has caused a rift within the music industry, with larger music publishers welcoming the move as a means to increase their royalties, while independent record companies fear that it will threaten the livelihood of independent artists.
This news was sourced from the Financial Times, and it highlights the ongoing debate surrounding Apple Music’s decision to provide additional royalties for “spatial audio” music. As the music industry continues to evolve, it remains to be seen how this controversy will impact the relationships between music labels and streaming platforms.