Although in a tiny fraction of the money it has in cash, Apple has made several millionaire donations to various fronts to combat the effects of the pandemic. Coronavirus (COVID-19). The company helped create (and made a major contribution to) a new food fund for affected citizens in the United States, collected and donated millions of masks to hospitals and also made another huge cash donation for a publicized campaign to fight the virus. by Lady Gaga.
Now, another novelty in this sense: according to the Music Business Worldwide, Apple created a fund of $ 50 million to support independent record labels and artists, maintaining – as far as possible – its activities and the payment of its employees.
More specifically, Apple will make the prepayment of royalties estimated for the coming months to these record companies. Companies that currently have a contract with Apple Music and receive at least US $ 10,000 in royalties per quarter – that is, record companies that attract about 500 thousand reproductions per month, according to calculation by reporter Tim Ingham.
The fund was launched without much fanfare: the company simply distributed a statement to independent record companies operating on Apple Music publicizing the news.
Obviously, help comes at a good time: unlike giants in the music industry, independent record labels – which already operate with narrow margins in normal times – will have their financial health seriously affected by the Coronavirus pandemic.
Of course, domestic reproductions may go up; on the other hand, however, companies will see a drastic reduction in revenue related to the reproduction of live music, in commercial establishments or concerts, in addition to the money from the rights to songs used in films and TV. We must also consider the postponement of the release of compacts, discs and other materials that bring profit to the record companies.
Apple’s move, therefore, shows that the company is interested in keeping these smaller labels in the game – which, beyond any momentum of generosity, certainly shows the direction that Apple wants to give Apple Music. Anyway, great news, isn’t it?
via AppleInsider
