Music streaming heavyweights Apple Music and Spotify are preparing financial aid for labels and artists during the COVID-19 pandemic.
The initiatives have already gained traction overseas and will soon make their way to Australian shores. Currently, artists across the globe are feeling the pinch of quarantine, with live shows completely off the table as a main income source.
Apple Music and Spotify have launched financial support initiatives for associated labels and artists. The projects have emerged in response to the music industry’s struggle during the coronavirus pandemic.
In compensation, Apple Music have unrolled a US$50 million fund to facilitate advance payments on royalties. This will ensure that struggling independent labels are able to pay their signed artists during the health crisis.
A letter from the streaming service, obtained by Rolling Stone, addressed labels with an outline of the initiative. It stated that independent labels with a direct Apple Music distribution deal and that exceed quarterly earnings of US$10,000 will be eligible.
Meanwhile, Spotify has launched an initiative worth US$10 million in direct contribution. The COVID-19 Music Relief project will match public donations dollar-for-dollar until the threshold is reached. This means that, combined with public donations, a total of US$20 million will fund specified organisations for financial relief within the music community.
Spotify has already distributed a portion of this money to partners in the US, Canada and the UK. Meanwhile, the music charity Support Act will likely represent the Australian and New Zealand contingent, according to The Music Network.
Support Act has also received a $10 million from the Australian government. The benefit comes out of a relief package for the entire arts sector valued at $27 million.
