Apple has launched a new Apple Music fund to help independent labels through the virus outbreak around the world.
Apple has setup a fund of $50 million which will be given as advanced royalties to independent music labels that need the money to keep going through this difficult time.
Rolling Stone saw the letter that was sent out to these labels and you can see part of the letter below.
Today Apple Music is announcing the creation of a $50 million-plus fund available as advances on future royalties to independent labels, to help them pay artists and maintain operations.
Royalty advances will be offered to independent labels with a direct Apple Music distribution deal who meet a minimum quarterly threshold of $10,000 in Apple Music earnings. Each advance will be based on the label’s past earnings, and will be recoupable against the label’s future earnings. This offer is in good faith that labels will channel funds to artists and label operations based on financial need.
Impact on Independent Labels
This initiative is particularly significant for smaller labels, which often operate on tighter margins and may not have the financial reserves to weather prolonged periods of reduced income. Independent labels play a crucial role in the music industry by promoting diverse and innovative music that might not find a platform through major labels. By providing these advances, Apple Music is not only helping to sustain these businesses but also ensuring that artists continue to receive support and that new music can still be produced and distributed.
For example, many independent labels have been forced to cancel tours, delay album releases, and halt promotional activities due to the pandemic. These activities are often vital revenue streams for both the labels and their artists. The advance royalties from Apple Music can help cover these gaps, allowing labels to continue paying their artists and staff, and to invest in future projects.
Broader Industry Implications
The move by Apple Music also sets a precedent for other major players in the music industry. It highlights the importance of supporting the entire ecosystem, from major labels to independent ones, especially during times of crisis. This could encourage other streaming services and music platforms to implement similar measures, creating a more resilient industry overall.
Moreover, this fund underscores the growing influence of streaming services in the music industry. As physical sales and live performances have dwindled, streaming has become a primary revenue source for many artists and labels. By offering financial support, Apple Music is reinforcing its role as a key player in the industry and demonstrating a commitment to the long-term health of the music ecosystem.
This is good news for the smaller labels as they may have struggled through this time and hopefully this will keep them going until things are resolved.
Source Rolling Stone, MacRumors
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