Apple Music Launches $50 Million Advance Royalty Fund to Make Sure Independent Labels Can Pay Artists

Apple Music today told independent record labels that it is launching a $50 million advance royalty fund to make sure that artists get paid amid the ongoing pandemic.

applemusic
In letters sent out to record labels that were seen and shared by Rolling Stone, Apple said that livelihoods are at risk and that it "wants to help."

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.

Today Apple Music is announcing the creation of a $50 million-plus fund available as advances on future royalties to independent labels, to help them pay artists and maintain operations.

Royalty advances will be offered to independent labels with a direct Apple Music distribution deal who meet a minimum quarterly threshold of $10,000 in Apple Music earnings. Each advance will be based on the label's past earnings, and will be recoupable against the label's future earnings. This offer is in good faith that labels will channel funds to artists and label operations based on financial need.

Label agreements for the advances will be posted in iTunes Connect, in the Agreements, Tax, and Banking module, on April 10. To receive an advance you will need to accept the Royalty Advance agreement and be on the latest Apple Music distribution agreement before May 8, 2020, at 11:59 p.m. PDT.

We hope that together we can help provide stability for artists by sustaining an enduring and vibrant music sector. If you have additional questions, please contact us.

Independent record labels that earn at least $10,000 in quarterly ‌Apple Music‌ earnings will qualify for royalty advances, and a direct ‌Apple Music‌ distribution deal is required.

According to Rolling Stone, the music industry has been struggling in recent months, as live music has been put on hold and many concert tours and major music festivals have been postponed or canceled. Music streaming is also down and artists are pushing back release dates for albums.

Top Rated Comments

robjulo Avatar
51 months ago
The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.


This is awesome. And why I’ll continue to support Apple Music over other streaming services. I can’t see Spotify doing this if they’re still in the negatives and not turning profits as is, haha.
Score: 15 Votes (Like | Disagree)
V_Man Avatar
51 months ago
This is a nice thing. I hope that the money actually goes to the artists and not the record company’s.
Score: 13 Votes (Like | Disagree)
V_Man Avatar
51 months ago

The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.
This 1000X. To Apple you are a $. Nothing else. No different from any other company. The fact that people think Apple cares about shows how good the PR Dept at Apple is.
Score: 8 Votes (Like | Disagree)
PickUrPoison Avatar
51 months ago
Wow. Nice. Not sure what else to say.

With only $40k yearly royalties needed to qualify, this will especially be helpful to smaller labels.
Score: 7 Votes (Like | Disagree)
NotAPeoplePleaser Avatar
51 months ago

This 1000X. To Apple you are a $. Nothing else. No different from any other company. The fact that people think Apple cares about shows how good the PR Dept at Apple is.
I don't understand this. I think they were very benevolent for doing this, and it makes for good business.


The “haha” is nothing but bizarre.....do you think any of these companies give one iota about you? Do you feel some emotional attachment and rooting interest in a multi-billion dollar company. Strange.
And yes, they do care, but when you're a multibillion-dollar public company, it becomes about an ethos, an ecosystem, and the shareholder (owner). Apple has a wonderful mix of conservatism/responsibility, stability, and delivery. Their product line is tight, and you probably don't go a day without using their products. I'm happy to criticize when it's due, but it's not due here.
Score: 6 Votes (Like | Disagree)
LeadingHeat Avatar
51 months ago
This is awesome. And why I’ll continue to support Apple Music over other streaming services. I can’t see Spotify doing this if they’re still in the negatives and not turning profits as is, haha.
Score: 6 Votes (Like | Disagree)

Popular Stories

Apple car wheel icon feature yellow

Apple Cancels Electric Car Project

Tuesday February 27, 2024 11:05 am PST by
Apple has canceled all plans to release an autonomous, electric vehicle, reports Bloomberg. Apple has been working on an Apple Car for more than a decade and invested millions of dollars into development before deciding it was not a viable project. Apple's Chief Operating Officer Jeff Williams today told approximately 2,000 employees working on the Apple Car that the project was canceled,...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iOS 18 Mock iPhone 16 Feature Gray

iOS 18 Rumored to Be Compatible With These iPhone Models

Tuesday February 27, 2024 6:31 am PST by
iOS 18 will be compatible with the iPhone XR, and thereby also the iPhone XS and iPhone XS Max models with the same A12 Bionic chip, according to a post on X today from a private account with a proven track record of sharing build numbers for upcoming iOS updates. The post was spotted by MacRumors contributor Aaron Perris, and it has since been deleted. However, this was likely because the...
General Apps Messages

iOS 17.4 to Add This 'Groundbreaking' New Messaging Feature

Friday February 23, 2024 5:05 am PST by
With iOS 17.4, set to arrive in March 2024, Apple is bringing a new cryptographic security feature to iMessage called PQ3. This "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks," according to Apple. Let's break down what that means. Apple's iMessage service already supports end-to-end encryption, but security...
iOS 17

iOS 17.4 Coming Soon With These New Features for Your iPhone

Monday February 26, 2024 6:08 am PST by
In a press release last month, Apple confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU, Apple Podcasts transcripts, and an iMessage security upgrade. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay...