Independent record labels have raised concerns about Apple's plan to pay more for songs recorded with spatial audio technology, saying it would only benefit the biggest companies in the market, the Financial Times reports. Last week, Apple announced royalty incentives to encourage music artists and labels to release tracks with spatial audio technology.
Apple said it will pay 10% more royalties for spatial audio, which uses Dolby Atmos technology to replicate the vocal music experience by using sounds coming from different directions around the listener.
Apple says more than half of Apple Music users use the feature, and the bonus is a reward for artists who contribute content and compensation for the extra time and effort required to mix with Dolby Atmos.
However, several independent labels told the Financial Times that the new incentives will effectively direct money towards established stars and away from other musicians who do not have the resources to compete.
A senior executive at a major independent record label said: "It's literally taking money out of independent labels and their artists to benefit the biggest companies in the market. It's going to benefit Universal, the biggest player, because they have the resources to invest. And in the independent sector... we find it hard to justify the expense of space mastering... We're not going to throw money into it just because Apple says you should spend money on it."
Another independent record label told the Financial Times that the new deal would severely impact its revenue.
Making music with spatial audio isn't cheap. Executives said it would cost an extra $1,000 per song and about $10,000 per album, while remastering old tracks would cost twice as much. Some record company executives have also questioned the artistic value of spatial audio, with one executive likening it to "hanging a digital 3D version of the 'Mona Lisa' and hoping that the patrons of the Louvre will like it."
Independent record labels said they hope to work with Apple to make changes to the new policy. People familiar with the matter told the FT they would pursue legal or regulatory avenues if negotiations failed.