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Apple Music Introduces Royalty Boost for Spatial Audio Content

by Celia

In a recent update sent to its label partners, Apple Music has announced a significant incentive for creators working with Spatial Audio. The platform confirmed that content available in Spatial will now receive a royalty rate up to 10% higher than content not available in this format.

Starting with January 2024 month-end royalty payments, Apple Music will calculate pro-rata shares for Spatial Available plays using a factor of 1.1, while Non-Spatial Available plays will continue to use a factor of 1. This move aligns with Apple Music’s commitment to rewarding higher-quality content and ensuring fair compensation for artists investing in Spatial mixing.

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This decision follows a December report from Bloomberg, indicating Apple Music’s plans to give added weighting to streams of songs mixed in Dolby Atmos, particularly in the Spatial format.

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Apple Music clarified that the objective of this change is not only to acknowledge superior content quality but also to ensure artists receive fair compensation for their efforts in embracing Spatial mixing.

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The platform noted a substantial adoption of Spatial by prominent global artists, with 80% of songs reaching Apple Music’s Global Daily Top 100 in the past year available in Spatial.

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Importantly, Apple Music subscribers don’t necessarily have to listen to music in Spatial Audio for artists to receive the bonus payout. The metric is calculated based on the proportion of Spatial Available to Non-Spatial Available plays.

Apple Music also shared that over 90% of its listeners have experienced music in Spatial Audio, and plays for music available in this format have more than tripled in the last two years.

The number of songs available in Spatial Audio on Apple Music has seen a remarkable increase, rising nearly 5,000% since launch and doubling in the last year alone.

Apple Music has a zero-tolerance policy against deceptive or manipulative content, which extends to Spatial Audio. The platform’s teams have implemented a quality control process to ensure content aligns with Apple Music’s Spatial Audio specifications and quality standards.

Bloomberg’s earlier suggestion that Apple Music’s move to incentivize Spatial Audio production aims to encourage hardware purchases aligns with the fact that Apple devices support Dolby Atmos and Spatial Audio.

In the broader music streaming landscape, Spatial Audio is also part of Amazon Music Unlimited’s offerings, featuring a growing catalog of songs mastered in Dolby Atmos and 360 Reality Audio.

Notably, Spotify, Apple Music’s rival, currently does not offer Spatial Audio on its platform. However, rumors suggest that Spotify is preparing a ‘Supremium’ tier, offering 24-bit Lossless music and AI-assisted playlist creation at a monthly subscription price of $19.99.

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