Apple Music Offers $50M In Advances To Indie Labels So They Can Pay Artists
Apple Music has quietly started a $50 million fund to help independent record labels and artists during the COVID-19 crisis.
The 50 million-plus fund will pay advances on future royalties to independent labels to help them pay artists and maintain operations.
The effort is one of many music industry emergency efforts including the Recording Academy and MusiCares’ COVID-19 Relief Fund, a Live Nation $10 million fund for crew and support staff and millions of dollars in donations and services from Spotify, StubHub, SoundCloud, Universal Music Group, Sony Warner Music Group and others.
A letter to labels was shared by Rolling Stone.
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.
Thank you and stay safe,
The Apple Music Team