May 15, 2014
So it was announced this week that Apple is buying Beats By Dre. My first thought was huh? Why the fuck would Apple buy this shitty head phone company for 3.2 BILLION dollars. Well, I think I found the answer: A leaked document showing Beats by Dre’s music subscription royalty payouts. As little as artists get payed in a streaming service, it seems Dre has cut that price down significantly. Dre’s Beats pays a whopping 0.000126 per play. At least Spotify pays a generous $0.006 to $0.0084 (maybe) per stream.
Out of all the digital resellers, iTunes at least payed about 50% to the rights holders of a sale. Could they be moving towards a subscription based system? I think so. As great as some of these subscription services are, artists cannot survive from these payout plans. If you use these services and like what you’re listening to, go and buy that music. If you can buy it direct from the artist great, if not try iTunes… I guess?