Apple Music's spatial audio push raises concerns for indie labels
The main worry centers on the significant cost of creating spatial audio mixes, ranging from $500 per track to a staggering $15,000 per album.
Billboard reports that Apple Music's recent announcement of a 10% royalty increase for tracks delivered in spatial audio might seem like a win for artists and labels. However, independent labels are raising concerns about the potential downsides of this seemingly positive change.
The main worry centers on the significant cost of creating spatial audio mixes, ranging from $500 per track to a staggering $15,000 per album. This puts a heavy financial burden on smaller labels, whose margins are often already tight. Additionally, converting older recordings to spatial audio can be impossible due to missing individual stems or artistic objections from the original creators.
For what it’s worth, on the latest episode of Unplugged with Tyler Winters and John Pearman, we discussed this exact topic and wondered if the return on investment is even worth it for smaller artists. You can check that out (around the 31:28 mark) below.
Even if labels overcome these hurdles, the 10% royalty increase may not be enough to offset the production costs, especially for genres or artists with lower streaming numbers. Furthermore, some sources allege that Apple prioritizes spatial tracks for placement on playlists and the homepage, putting pressure on labels to adopt the format regardless of the financial viability.
Beyond the financial concerns, some argue that the lack of an industry standard for spatial audio creation adds to the confusion and expense. This makes it difficult for labels to navigate the process and ensure they are getting the best value for their money.
Despite these concerns, many indie labels feel they have no choice but to comply with Apple's push for spatial audio, given the platform's dominance in the streaming market. This situation mirrors the broader debate on music royalty reform, highlighting the ongoing struggle for smaller players to secure fair compensation in a landscape increasingly dominated by major labels and larger platforms.
Independent labels and trade groups are calling for open and constructive dialogue with platforms like Apple Music to address their concerns. They emphasize the need for a streaming ecosystem that promotes diversity, supports local markets, and ensures fair treatment for all artists and labels, regardless of size or genre.
The future of spatial audio remains uncertain, but it's clear that open communication and collaboration between platforms and indie labels are crucial to creating a sustainable and equitable ecosystem for all stakeholders in the music industry.