Outside of upfront payments (if any), what can labels and publishers expect monetarily from the iCloud?
That is, once it’s up-and-running? According to Numero Group cofounder Ken Shipley, the payout percentages look something like this (Numero Group has opted out of the program):
70% of each $25 account is spread out over every “match” made for a year.
70% of $25 = $17.50
$17.50 on an average song library of 5,000 songs = $.0035 per song.
$17.50 on the maximum song library of 25,000 songs = $.0007 per song.
12% of that is then given to the publisher(s), according to the breakdown offered.
Separately, we’ve also heard that publishing’s 12 percent is on top of the 70 percent, giving Apple an 18 percent remainder. Either way, this is a pennies game if we’ve ever seen one, and a great deal depends on iCloud uptake – and the number of popular songs in a particular label or publishing catalog.
And, substantial payouts will only come from serious volume. “I will say this,” Shipley told Digital Music News. “For a publisher to make $1 at the 5,000 song math, they would need 1,667 matches. I don’t write $1 checks.”