In an open letter sent to artists today, Apple Music reveals for the first time how it performs pay-per-stream. The platform reports that the average watch rate is one penny per stream, but it may vary depending on the subscription plan and geographic watch rates.
First reported by The Wall Street Journal, the letter made to the artists reflects the growing efforts of music streaming services to create a more transparent image.
And although it seems little, the payment of US $ 0.01 from Apple Music per transmission, exceeds the payment that Spotify makes for the music played on its platform, where it handles a very confusing variable rate scheme that only reaches a maximum of half penny per transmission.
The pandemic and music
Following the emergence of the pandemic, mass events were canceled including concerts. The music industry is not experiencing economic stability and small artists are turning to streaming services, where royalties are not used to earn a living.
While Apple Music reveals a superior pay-per-stream scheme, the number of streams is still low compared to Spotify, which is a more massive service with lower variable fees.
However, neither of the two most popular music services really solves the essential financial problem for small artists at a time when the return of concerts is still a long way off.