While the music world has shown some skepticism towards streaming services such as Spotify, Apple’s iTunes Match may be getting a much warmer reception, Ars Technica reports. So how is Apple’s cloud-based service any different from its competitors and why does it please musicians?
The independent music distribution service TuneCore summarized it very well in a blog post. According to its CEO, Jeff Price, the first royalties he just received from iTunes Match ($10,000 for two months) are “magic money that Apple made exist out of thin air for copyright holders.”
What he means by that is that iTunes Match created a whole new revenue stream for artists. Think about it: with this new service, artists get paid every time a user plays a song, even if that person already owns said song – no matter if they bought it or downloaded it illegally.
In other words, Apple managed to monetize an existing behavior – listening to music – thanks to annual subscriptions, which are now available in several countries.
Although none of the involved parties has disclosed the exact amount a copyright holder will receive for each stream, such additional revenue sources are certainly quite exciting for the ailing music industry.
This post is part of our contributor series. The views expressed are the author's own and not necessarily shared by TNW.
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