In November 2011 Apple launched its new iTunes Match service. This service costs iTunes users an additional fee per year and generates revenue for TuneCore artists.
With this service, Apple will make all music in an iTunes user’s music library available to that user on up to ten iTunes compatible devices through streaming and/or downloading without having to upload the music onto each and every device. It does not matter if the song was purchased from the iTunes Store – the iTunes Match service will also include access to songs that were ripped from a CD, downloaded from the Internet or became available to the user via other means.
How much do TuneCore artists get paid when their recordings are available via the iTunes Match service?
You get paid each time your music is re-downloaded or streamed via the iTunes Match service.
The amount TuneCore artists get paid for the iTunes Match service is based on a unique revenue share model. Each time your music is accessed via iTunes Match, iTunes pays you a pro-rated share of the total subscription revenue generated by the iTunes Match service that includes both recording and publishing revenue. Keep in mind that the payout rate will fluctuate each month depending on how much subscription revenue was generated and how often your music was re-downloaded and/or streamed.
As always, TuneCore will pay out 100% of the revenue it receives from iTunes for your music; however, iTunes Match payments are unique in that they include both recording and publishing income. And if you do not control the underlying musical composition(s) to the recording(s), you are obligated to remit the publishing income to whomever owns or controls the musical composition(s); usually the songwriter or his/her publisher.
How much publishing income do I have to pay to third parties?
For any iTunes Match revenue that you may receive, seventeen percent (17%) of that amount represents publishing income. Therefore, if you receive $1.00 in iTunes Match income for one of your sound recordings and do not own or control the underlying musical composition to that sound recording, you would have to give seventeen cents ($0.17) to the songwriter or publisher that owns or controls the underlying musical composition.