Apple is turning to transparency in regards to its music streaming business. According to The Wall Street Journal, the company sent letters detailing the rate of pay-per-stream to the music industry last week.
In the letter, Apple acknowledged their pay rate of one cent per stream. The announcement comes following a difficult financial year for artists. With live shows mostly shuttered, streams have become the primary source of income for many in the music industry. Calls for streaming services to pay artists more have become frequent.
The one cent per stream pay rate nearly doubles the pay rate of industry leader Spotify, which shared information surrounding it’s financial compensations to artists last month. Spotify last reported 345 million users, 155 million of which are Spotify Premium subscribers. Apple Music on the other hand disclosed they had just over 60 million subscribers back in June 2019.
While Apple may be paying one cent per stream, that money doesn’t go directly to the artist. That penny is payed to the rights holder of the song, often a music label. The artist then gets paid by their label based on the terms of their contract.