Apple Music will offer a $50 million advance payment to support independent music brands and musicians in the ongoing phase of the new crown,media reported. In an effort to offset the expected negative impact of the new corona virus pandemic, Apple has quietly launched a $50 million upfront fund to support the operation of independent record labels and distributors on Apple Music, sources told Music Business Worldwide.
The money appears to be used for a one-time advance from future Apple Music royalties. Only record companies and distributors with direct distribution agreements with Apple Music are eligible, and those records and distributors must meet the standard of at least $10,000 a quarter for Apple Music. This restriction excludes the possibility of issuing independent brands through large brands.
The company is telling record labels and distributors that it hopes the money will be used to help them pay artists’ salaries and maintain operations in response to a global ban on sales, the report said.
There is no doubt that the new corona virus pandemic has hit the music industry particularly hard, as concerts and live performances have been largely cancelled around the world, as the loss of production of films and TV shows and the closure of brick-and-mortar stores have led to a run-up of revenue from the music industry.
In addition, many record labels are considering postponing the upcoming album to avoid weak demand during this period — echoing rumours that Apple will launch the iPhone 12 this fall.