Someone sent us this interesting document. This is real.
Never mind that Beats only has 110k subscribers. Is Apple Buying Beats simply because of the ridiculously low royalty that songwriters are paid?
People may be getting the impression that we are down on the Beats service. We actually like Beats from an performers perspective for several reasons. here are two.
1) As a pay platform-not advertising supported-there is higher revenue per stream. We are paid on a percentage of revenue. We make more money as a consequence.
2) The major record labels appear to own less of Beats (then they do of Spotify) and perhaps another explanation for the higher royalty rate at Beats is less was traded away for stock. Perhaps we will get more information about this if there is a Hart-Scott-Rodino Act hearing on the sale given Apple’s dominant position in hardware and music services.
What we don’t like is that as Songwriters we are paid so little.