Apple Music, a product of the Cupertino corporation, is considered the second most important and successful music streaming service in the world. It has become very attractive for artists who make money from music streaming.
The Apple Music user base is about one hundred million people around the globe. Of course, this is much less than the market leader of the Swedish music streaming service Spotify. It has about 400 million users, of which more than 160 million have a paid subscription to one of the tariff paid services.
Artists don’t receive money directly from streaming services like Apple Music, but instead pay copyright owners, which also include record labels, publishers and other distributors, who distribute the money based on a contract with each artist.
Apple Music has also made sure that 52% of the revenue generated from paying for its users’ subscriptions goes directly to the artists and pays between 50 and 53 cents depending on the contract they have, for every euro their subscribers invest. Spotify has previously stated that in their case, this amount is around 75-80%. But in practice, for some reason, artists receive very little on the Swedish platform.
Paying artists pennies per stream, Apple Music pays twice as much as Spotify, which currently ranges from half to a third of a cent.
This is evidenced by an internal Apple Music document addressed to artists, which was sent to them and includes principles for paying the platform’s creators.
How much does Apple Music pay for every 1000 plays? This amount is only $7.35. But the big money starts when the number of streams on this music streaming service exceeds one million. In this case, the funds received from music streaming on the apple music service may well become a full-fledged source of income for the music industry.