Apple Music launches $50 million royalty fund to help record labels
According to the letter, the advance royalties will be given to independent labels that have a direct deal with Apple Music and who earn at least $10,000 in their quarterly Apple Music earnings.
The covid-19 outbreak has affected the operations of almost all industries across the globe. This includes the music industry that earns a major part of its revenue from recordings, music concerts and tours. And so Apple Music has launched a $50 million to help its record labels and artists get through this pandemic.
The company made the announcement in an email to independent record labels wherein it explained the terms and conditions of getting the funds. As per the letter seen by the Rolling Stone, the company will pay advances on future royalties to independent labels in order to help them pay artists and maintain operations. "This offer is in good faith that labels will channel funds to artists and label operations based on financial need," the email says.
"These are difficult times for the music industry globally. Livelihoods are at risk, with multiple sources of income that our industry relies on vanishing overnight. Apple has a deep, decades-long history with music, and we are proud to be in close partnership with the best labels and artists in the world. We want to help," the company added.
According to the letter, the advance royalties will be given to independent labels that have a direct deal with Apple Music and who earn at least $10,000 in their quarterly Apple Music earnings. Furthermore, the company said that each advance will be based on the label's past earnings and that it will be recoupable against the label's future earnings.