Apple Music Faces Backlash Over Increased Royalties for “Spatial Audio” Support
Apple Music recently introduced a “spatial audio” function that promises more immersive sound effects, but the move has sparked controversy. The tech giant has increased royalties for supported sound sources in an effort to encourage record companies to provide “spatial audio” music. However, this decision has not been well-received by all.
The current additional royalty rate for music that supports “spatial audio” is 10% higher than normal. While this may seem like a step in the right direction, it has left independent record companies voicing their dissatisfaction. They argue that this move will negatively impact their bottom line, potentially “killing” their living space in the music industry.
The calculation method for these increased royalties is a proportional distribution of dividends from the subscription revenue. This means that while “spatial audio” music royalties are going up, the income allocated for ordinary music will be reduced. Large music publishers are also feeling the pressure, but independent record companies like Beggars Group, Secretly Group, and Partisan Records are particularly vocal about the potential impact on independent artists.
According to reports, producing a “spatial audio” version of a song costs an additional $1,000, and it can cost about $10,000 to produce an entire album. Updating original tracks to support “spatial audio” may be even more expensive. Apple has not responded to the backlash, but their efforts to promote “spatial audio” are clear. Their upcoming products like Vision Pro and future AirPods will support this new format, and the availability of more supported music will help them compete with rivals like Spotify.
The controversy surrounding the increased royalties for “spatial audio” support highlights the challenges in balancing innovation, fair compensation for artists, and the financial interests of record companies. As the music industry continues to evolve, it remains to be seen how this issue will be addressed.
Source: Financial Times
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