April 12, 2021

Winnipeg
-2° C, Snow

Full Forecast

Contact Us Subscribe Manage Subscription Chat with us
Log in Create Free Account Help Chat with us
    • Contact Us
    • Advertising Contact
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • My Account
    • Manage my Subscription
    • Change Password

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
    • Log in
    • Create Free Account
    • Help

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
  • Coronavirus Coverage
  • Replica E-Edition
    • About the E-Edition
    • Winnipeg Free Press
    • The Herald
    • The Headliner
    • The Lance
    • The Metro
    • The Sou'Wester
    • The Times
  • Above the Fold
  • Front page
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Book Club
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Business
    • All Business
    • Agriculture
    • Personal Finance
  • Canada
  • Local
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • Sports
    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • World
  • The StarNEW
  • About Us
    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
  • Archives
  • Canstar Community News
    • All Canstar Community News
    • The Headliner
    • The Herald
    • The Lance
    • The Metro
    • The Sou'wester
    • The Times
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Classifieds
  • Contests
  • Coupons
    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • Sponsored
    • Publications
    • Sponsored Articles
  • Flyers
  • Homes
    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Newsletters
  • Obituaries
  • Puzzles
  • Photostore
  • More

©2021 FP Newspaper Inc.

Close
  • Quick Links

    • Coronavirus Coverage
    • Above the Fold
    • Home
    • Local
    • Canada
    • World
    • Classifieds
    • Special Coverage
    • Flyers
    • Newsletters
    • Obituaries
    • Photostore
    • Archives
    • Contests
    • Publications
    • Sponsored Content
    • Privacy Policy

    Ways to support us

    • Pay it Forward program
    • Subscribe
    • Day Pass
    • Read Now Pay later
  • Replica E-Edition

    • About the E-Edition
    • Winnipeg Free Press
    • The Herald
    • The Headliner
    • The Lance
    • The Metro
    • The Sou'Wester
    • The Times

    Business

    • All Business
    • Agriculture
    • Personal Finance
  • Arts & Life

    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Cannabis
    • Celebrities
    • Diversions
    • Puzzles
    • Environment
    • Events
    • Faith
    • Food & Drink
    • Your Health
    • Life & Style
    • Movies
    • Music
    • Science & Technology
    • TV
    • Travel
  • Sports

    • All Sports
    • Amateur
    • Auto Racing
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • Golf
    • High School
    • Hockey
    • Horse Racing
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Olympics
    • Soccer
  • Opinion

    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor

    Media

    • All Media
    • Photo Galleries
    • Videos

    Homes

    • Property Listings
    • Featured News
    • Renovation and design
    • New homes
    • Resale homes
  • Canstar Community News

    • All Canstar Community News
    • The Headliner
    • The Herald
    • The Lance
    • The Metro
    • The Sou'wester
    • The Times
    • Sports
    • Events
    • Contact Us
    • E-Editions
  • Coupons

    • All Coupons
    • Staples Copy & Print Coupons
    • Ripley's Aquariums Coupons
    • The Bay Coupons
    • Staples Canada Coupons
    • Altitude Sports Coupons
    • Nike Coupons
    • Tuango Coupons
    • Ebay Canada Coupons
    • Sport Chek Coupons
    • Roots Coupons
  • About Us

    • About Us
    • Advertising
    • Contact Us
    • Carrier Positions & Retailer Requests
    • FP Newspapers Inc.
    • History
    • Internships
    • Job Opportunities
    • News Café
    • Privacy Policy
    • Retail Locations
    • Staff Biographies
    • Terms and Conditions
Winnipeg Free Press
Articles Read
Your Balance +tax
Day Pass Till
Day Pass
    • Contact Us
    • Advertising Contact
    • Report an Error
    • Send a Letter to the Editor
    • Staff Biographies
    • Submit a News Tip
    • Subscribe to Newsletters

    • Finding your
      information

    • Log in
    • Create Account
    • Help
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate
    • My Account
    • Manage My Subscription
    • Change Password
    • Chat with us

    • Grid View
    • List View
    • Compact View
    • Text Size
    • Translate

    • Log Out
Log in Create Account Contact Us
Contact Us Manage Subscription
  • Sections
  • Local
  • Arts & Life
    • All Arts & Life
    • The Arts
    • Autos
    • Books
    • Diversions
    • Environment
    • Faith
    • Food & Drink
    • Health
    • Movies
    • Music
    • TV
    • Travel
  • Business
  • Sports
    • All Sports
    • Amateur
    • Blue Bombers
    • Curling
    • Football
    • Goldeyes
    • High School
    • Hockey
    • Winnipeg Jets
    • Manitoba Moose
    • WHL
    • MLB
    • NBA
    • Soccer
  • Opinion
    • All Opinion
    • Analysis
    • Columnists
    • Editorials
    • Editorial Cartoons
    • Letters to the Editor
    • Send a Letter to the Editor
  • E-Edition
  • Homes
  • Classifieds
    • All Classifieds
    • Announcements
    • Automotive
    • Careers
    • Garage Sales
    • Merchandise
    • Pets
    • Real Estate
    • Rentals
    • Services
  • Sponsored
    • Publications
    • Sponsored Articles
  • Coupons
    • All Coupons
    • Staples Copy & Print
    • Ripley's Aquariums
    • The Bay
    • Staples Canada
    • Altitude Sports
    • Nike
    • Tuango
    • Ebay Canada
    • Sport Chek
    • Roots
  • Obituaries
  • Subscribe
Arts & Life Arts & Entertainment Music

Advertisement

Advertise With Us

Musicians fear they'll take a beating

Apple deal could slash revenue

By: Cliff Edwards
Posted: 1:00 AM CDT Sunday, Jun. 1, 2014

  • Tweet
  • Share
  • Print
  • Email

SAN FRANCISCO -- Recording artist Zoe Keating only needs to look at her earnings to zero in on why she has misgivings about Apple Inc. buying Beats Electronics.

Hey there, time traveller!
This article was published 31/5/2014 (2507 days ago), so information in it may no longer be current.

SAN FRANCISCO -- Recording artist Zoe Keating only needs to look at her earnings to zero in on why she has misgivings about Apple Inc. buying Beats Electronics.

The cellist made $38,196 selling downloads on Apple's iTunes last year, along with about $34,000 from three other download services. By contrast, five streaming outlets, from Spotify to Pandora Media, netted her just $6,381.

Thom York, lead singer of rock band Radiohead — a band that has resisted music streaming.

ARMANDO FRANCA / THE ASSOCIATED PRESS

Thom York, lead singer of rock band Radiohead — a band that has resisted music streaming.

 

Apple's $3-billion plan to purchase Beats Electronics and Beats Music is likely to alter that relationship, as the iPhone maker pushes further into streaming. Apple became an ally of musicians by selling tracks and albums on iTunes, loosening piracy's grip on the industry and giving lesser-known artists exposure. As consumers shift away from buying, artists such as Keating worry the newer subscription services will pay far less in royalties.

"ITunes downloads help me pay my monthly mortgage," Keating said in an interview. "Unless you're a mega-star, you can't count on the same for streaming services. Me and a lot of my music artist friends are worried about the switch from music buyers to music listeners."

That's also the dilemma for the recording industry, which is finding that streaming, while growing, isn't making up for shrinking purchases, physical and online.

Worldwide, recording-industry revenue is forecast to decline during the next few years from an estimated $19.6 billion in 2014, based on data from Strategy Analytics, an industry researcher. Mobile and online streaming, including subscription and advertising revenue, will become the second-largest revenue source, behind spending on CDs and vinyl.

'Something we've been waiting for and something we've been dreading is the day when Apple gets into streaming'

"The question everyone in the industry is asking is whether spending on streaming will grow to compensate for declines in physical spending, which will never rebound, and downloads, which are flatlining," said Leika Kawasaki, an analyst at Strategy Analytics.

So far it hasn't, and that's also a problem for well-known musicians, not just Keating.

This screenshot shows a frame grab of Beats Music. Beats Music comes from Beats Electronics, the headphone-maker backed by hip-hop mogul Dr. Dre and former music executive Jimmy Iovine. (AP Photo/Beats Music)

CP

This screenshot shows a frame grab of Beats Music. Beats Music comes from Beats Electronics, the headphone-maker backed by hip-hop mogul Dr. Dre and former music executive Jimmy Iovine. (AP Photo/Beats Music)

Radiohead's Thom Yorke and his group Atoms for Peace pulled songs from Spotify last year, the Wall Street Journal reported, saying major labels negotiated royalty rates that leave little for performers. Other notable holdouts with limited availability on streaming include the Black Keys and AC/DC.

How low are the royalties? Higher than conventional radio, which legally pays nothing, but not a lot either.

Last June, David Lowery of indie rock band Cracker published the writing fees he received from streaming music services that played his 1993 hit song Low.

Pandora paid him $16.89 for playing the title about 1.16 million times in the last three months of 2012. The Internet radio service, based in Oakland, Calif., pays a rate set by a government agency, one that's lower than streaming services. Stockholm-based Spotify, which played the song 116,260 times, paid him $12.05.

Damon Krukowski of the defunct rock band Galaxie 500 estimated on the website Pitchfork.com that Pandora would have to play a track 312,000 times for him to generate the same songwriting income as one LP sale.

In response, Pandora pointed to a website analysis that showed it paid a total performance royalty of $1,274.90 on the plays to Lowery -- and others who share the rights.

In addition, the company said in an email it paid more than $340 million in royalties to rights-holders in 2013.

Spotify furnished $500 million in royalties last year, according to Graham James, a spokesman, citing the company's website. The company steers listeners away from piracy and platforms, such as traditional radio, that provide even less to artists. It also tries to convert them to paying customers.

Cupertino, Calif.-based Apple, with a reservoir of goodwill among artists, might become the problem-solver again.

The iTunes store puts Keating's tracks on the same footing with Rihanna and U2, with web pages that feature both famous and independent artists.

With physical discs on the decline, Beyonce chose iTunes to release her fifth solo studio set, while independents such as rapper Macklemore have used Apple to cut out the middleman and win fame on their own.

The challenge for Apple is to deliver a discovery mechanism that gives new and emerging artists enough exposure for the industry to maintain a healthy mix of superstars and up-and- comers, said Bob Lefsetz, author of an industry blog.

Less-known artists have voiced concern there will be fewer ways to promote and sell their music on streaming services, particularly since most negotiations take place with the major music labels.

"If you're a nobody, you're not going to make a lot of money off streaming," Lefsetz said. "Ultimately, this is good because it eviscerates piracy, but only for the best and most popular stuff.

Apple could also provide links that let interested listeners easily buy music they like, in much the same way conventional radio encouraged purchases over the years.

"Music is such an important part of Apple's DNA and always will be,'' Eddy Cue, senior vice-president of Internet and software services, said in a statement announcing the Beats deal. ''The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.''

Tom Neumayr, an Apple spokesman, didn't return a phone call seeking additional comment.

Stay informed

The latest updates on the novel coronavirus and COVID-19.

Subscribe to COVID-19 Briefing
Sign Up

Apple's involvement with Beats, based in Santa Monica, Calif., is no guarantee of success. Outside of the iTunes store, the company hasn't had a breakout hit on a music product. Apple shut down the social music network Ping in 2012 after two years. ITunes Radio, created to compete with Pandora, hasn't gained much traction, analysts say.

Still, Keating looks for a silver lining.

"Something we've been waiting for and something we've been dreading is the day when Apple gets into streaming," she said.

"If they can get the fact across they care about the artist, want to get their story told and still make purchasing of tracks possible, that's all anybody would want."

 

-- Bloomberg News

Advertisement

Advertise With Us

  • Report Error
  • Submit a Tip
  • Refund

The Winnipeg Free Press invites you to share your opinion on this story in a letter to the editor. A selection of letters to the editor are published daily.

To submit a letter:
• fill out the form on this page, or
• email letters@freepress.mb.ca, or
• mail Letters to the Editor, 1355 Mountain Avenue, Winnipeg, Manitoba, R2X 3B6.

Letters must include the writer’s full name, address, and a daytime phone number. Letters are edited for length and clarity.

Advertisement

Advertise With Us

Top