iTunes Match, Apple’s cloud music locker, launched late last year with every major record label signed on. iTunes Match costs $25 a year per customer, and allows users to keep every one of their iDevices synced up with music they’ve purchased.

Today, TuneCore’s Jeff Price published a post praising Apple for their payouts to record labels for songs played on iTunes Match. Price detailed the $10,000 he was awarded by Apple, in only two months…

Apple charges consumers a fee of $25 a year to subscribe to the iMatch service. Once a consumer pays the fee for the service, iTunes will scour the consumer’s computers or iPhone or iPads, and make all of the songs already on these devices available for the subscriber to re-download or stream on demand. If the song is in the iTunes music store, then the subscriber does not need to upload the song.

Each and every time the consumer either re-downloads or streams a song he or she already has, copyright holders get paid.

According to Price, record labels are being payed by Apple each time a customer re-downloads or streams a song they own. Some might complain that this isn’t much money, but as Price points out, record labels weren’t getting any money before for songs only being played.

Apple also pays record labels similar to how they pay App Store developers. As MacRumors notes, Apple keeps 30% of the $25 a year, and splits up the other 70% — giving 88% to record labels and 12% going to songwriters. While companies like Spotify and Rdio pay record labels to list their music, Apple is actually paying record labels per each song played.

Price says he was thrilled to see $10,000 appear “out of thin-air”. iTunes Match is certainly a great way to combat pirating, and more smaller record labels need to understand that.

Do you use iTunes Match?

  • Anonymous

    ITunesMatch has made my iPod obsolete. The problem is since I have an iPhone that I carry around all the time that I need a heavy dataplan when on the road. That’s a reason it is not yet handy for most people in my circles.

    I don’t understand why it hasn’t become THE next big thing.

  • My only problem with it is that if you are in weak 3G coverage areas your songs take forever or simply do not play at all. It I very frustrating sometimes. However I do love the ability rid all of my songs from my device, making more room for the multiple podcasts I listen to.

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  • I use and love the match service. Although I have a grandfathered unlimited data plan, I simply go in the music app and use WiFi to download my songs to the device so they do not have to stream each time. Even living in metro Detroit does not mean totally consistent 3G coverage and so sometimes the music will lag and stop playing. But once they download to the device problem goes away.

    Great service, fair price, artists and labels get their due= worth the $25/year. In my opinion at least…

  • stephen robichaux

    I was so excited about Itunes match. It just does not work well enough. It takes too long to play a song. If it shuffles to a song that is too big it just locks everything up. Also it eats up data. Every month I get a text from AT&T about being in the top 5% of data users. I never used to get that before.

  • iTunes Match is absolutely awesome