In a letter that should be shared today with artists through the Apple Music for Artists control panel, obtained by The Wall Street Journal, Apple has reportedly revealed that it pays music rights holders a penny per song aired by Apple Music.
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The report states that Apple Music’s payment structure is therefore approximately double what Spotify pays music rights holders per broadcast, which averages about one-third to one-half cents per broadcast, although the The report cites music industry experts who say Apple Music payments may be submerged below. Apple Music payments come directly from revenue based on customer service subscription, the report adds.
In the letter, Apple says it pays 52 percent of subscription revenue, or 52 cents of every dollar, to record labels and other music rights holders, according to the report. These music rights holders in turn pay artists based on their recording, publishing, and distribution agreements, so artists may not receive the full one hundred percent.
“As the discussion about streaming rights continues, we believe it’s important to share our values,” Apple said in the letter, according to the report. “We believe in paying all creators the same fee, that a work has value and that creators should never pay” for their music to appear in featured sections of the Apple Music app.
Spotify has significantly more users than Apple Music worldwide, with 155 million paying subscribers and a total of 345 million users by the end of 2020. The last known number of Apple Music subscribers is about 60 million , including those with a free trial, but Apple has not provided an updated figure in nearly two years.