Streaming clearly represents the future, but for now, artists frustrated with their minuscule royalty payments have turned to tech giants for big-time marketing dollars for video or tour funding, even if it means their music is limited to users of just one service.
And labels, which lack the bottomless ad budgets of Apple and Samsung, are often the beneficiaries of these kinds of money grabs. “If you look at what’s happening in the film and TV world with Amazon and Netflix and Apple, there’s an incredible war over good content,” says a major-label source. “We’re in a very good position that way. It’s going to escalate in the short term.”