Apple Music and Spotify are gearing up to financially support Australia’s independent music scene through funding initiatives that are already underway overseas.
As The Music Industry reports, the two streaming services will establish support initiatives in Australia after commencing similar programs in the US.
In the US, Apple Music recently announced a $50million USD fund to ensure artists get paid their royalties by independent labels that may be struggling amid the pandemic. In a letter sent to labels, and seen by Rolling Stone, the fund will pay out royalties in advance to keep financial operations running.
“Royalty advances will be offered to independent labels with a direct Apple Music distribution deal who meet a minimum quarterly threshold of [US]$10,000 in Apple Music earnings. Each advance will be based on the label’s past earnings, and will be recoupable against the label’s future earnings.”
It has been confirmed to TMN that Australian independent labels will also have access to this fund.
As for Spotify, the streaming giant’s COVID-19 Music Relief project will make a one-off donation to partnered music organisations and match up to US$10million in donations made to these organisations by the public.
“Spotify will recommend verified organizations that offer financial relief to those in the music community most in need. Spotify will match dollar-for-dollar public donations, up to a total Spotify contribution of $10 million,” a blog post read.
Spotify has currently partnered with MusiCares, PRS Foundation, Help Musicians and Unison Benevolent Fund overseas. According to TMN, Spotify will supposedly partner with a local organisation to benefit from the project, such as music crisis charity Support Act.
The Australian goverment announced today Support Act would receive $10 million in funding from the Australian Government, as part of a $27 million sector-wide relief package.