Apple Music Uses Shazam for DJ Mixes - A Streaming Solution

Apple Music Introduces Fair Compensation for DJ Mix Creators

Apple Music has unveiled a new system designed to accurately identify and fairly compensate all creators contributing to DJ mixes. This initiative leverages the technology of Shazam, the audio-recognition application acquired by Apple in 2018 for $400 million.

The company is collaborating with both major and independent record labels to establish an equitable method for distributing streaming royalties. This distribution will encompass DJs, labels, and the artists whose work is featured within the mixes.

Addressing Historical Challenges in DJ Mix Streaming

Previously, DJs faced significant obstacles when attempting to stream mixes online. Platforms such as YouTube and Twitch often flagged the inclusion of copyrighted material, leading to potential copyright infringement claims.

While artists are legally entitled to royalties when their songs are played during live DJ sets, the complexities of dance music – with its use of samples and edits – further complicated the process of accurate royalty allocation.

Expanding Access to DJ Mixes on Apple Music

Apple Music currently hosts a substantial collection of mixes, including sets from Tomorrowland’s digital festivals in 2020 and 2021. The formal announcement of the underlying technology enabling this functionality has been made recently, following initial reports by Billboard in June.

As part of this rollout, the DJ Kicks archive from Studio K7! will become available on the service, providing access to mixes that have been unavailable for over 15 years.

Industry Response and Positive Outlook

“Apple Music is the first platform to offer continuous mixes with a fair fee structure for both the artists whose tracks are included and the DJs creating the mixes,” stated DJ Charlotte de Witte. “This represents a positive step towards equitable treatment for all involved.”

She further expressed her excitement about the opportunity to once again share mixes online.

Competitive Advantage and Unique Features

The ability to stream DJ mixes represents a significant advancement for dance music enthusiasts. It also positions Apple Music to better compete with Spotify, the current industry leader in paid subscriptions, particularly as Apple strengthens its position in podcasting.

Despite introducing features like lossless audio, spatial audio, and acquisitions in the classical music space, Apple Music has yet to surpass Spotify in overall subscriber numbers. However, the addition of DJ mixes provides a distinctive offering.

Limitations and the Broader Landscape

While Apple Music’s approach addresses DJ royalties, it doesn’t fully resolve the wider challenges faced by live musicians and DJs, especially in the context of the ongoing pandemic.

User-Generated Content and Future Potential

Platforms like Mixcloud already allow DJs to stream sets and earn revenue through pre-licensed music. However, Apple Music’s DJ mixes will not initially include user-generated content.

Research from MIDiA Research, in collaboration with Audible Magic, suggests that user-generated content (UGC) – including platforms like TikTok and SoundCloud – could represent a $6 billion opportunity for the music industry within the next two years. Currently, Apple is not investing in UGC, requiring 70% track identification before hosting mixes, as reported by Billboard in June.

Royalties and the Future of Musician Compensation

Apple Music has not yet disclosed specific details regarding royalty distribution. Nevertheless, this development signifies a small but important step towards reimagining how musicians can earn a living in the digital age.

Streaming royalties currently constitute a relatively small portion of musicians’ income. Apple pays one cent per stream, while Spotify offers even lower rates. This disparity has prompted the Union of Musicians and Allied Workers (UMAW) to launch the “Justice at Spotify” campaign, advocating for a one-cent-per-stream payout.

Live performances remain a crucial source of income for musicians, though the pandemic has severely restricted touring opportunities. The Association for Electronic Music estimated in 2016 that dance music producers lost $120 million in royalties due to unattributed use of their work in live performances.