Apple’s recent announcement of a royalty bonus for spatial audio has drawn criticism from independent labels, who argue that it will place a financial burden on artists who cannot afford the higher production costs. Beggars Group, Secretly Group, and Partisan Records, representing artists such as Adele, Vampire Weekend, Bon Iver, Muna, Phoebe Bridgers, and PJ Harvey, have voiced their concerns about the preferential payouts offered by Apple.
According to the Financial Times, Apple Music artists can receive bonuses of up to 10 percent for creating music with spatial audio. However, independent artists who cannot afford to record in this format would earn less due to the way streaming music payouts are calculated. Apple will pay artists with pro rata shares from a subscription money pool, using a factor of 1.1 for spatial audio tracks, while non-spatial audio tracks will be left to split a smaller remaining portion of the money.
Unnamed music executives revealed to the Financial Times that producing songs in spatial audio adds an additional $1,000 per song to the production cost, or approximately $10,000 for an entire album. Updating older music to support spatial audio could be even more expensive. This financial burden places independent artists at a disadvantage, as they may not have the resources to invest in spatial audio and could suffer financially if they choose not to record in this format.
The labels argue that Apple’s royalty bonus scheme primarily benefits larger players like Universal Music Group, which has the financial means to invest in spatial audio and absorb any potential losses if an artist in its roster does not record in this format. Apple has been heavily investing in spatial audio and has ensured that its devices support this format. Other music streaming sites like Amazon and Tidal also offer spatial audio, but Spotify does not.
The concerns raised by Beggars Group, Secretly Group, and Partisan Records shed light on the challenges faced by independent artists in the music industry. While Apple’s push for spatial audio innovation is commendable, it is essential to consider the financial implications for artists who may not have the means to embrace this technology fully.
As the debate continues, it remains to be seen how Apple will address the concerns raised by independent labels and artists. The music industry is constantly evolving, and it is crucial to strike a balance between technological advancements and the financial well-being of all artists, regardless of their resources.
