Beatles iTunes Deal Pays the Band Directly
Reuters is reporting that the Beatles are being paid directly by iTunes for digital download royalties with songwriting mechanical royalties being paid directly to Sony/ATV Music Publishing, which controls most of the Beatles song catalog, according to industry sources.
If this is the case, the deal functionally acts as a licensing agreement as opposed to a standard digital retail sale, which would split royalties between the Beatles and Sony/ATV Music, significantly more lucrative than the traditional 20-25% “superstar” rate.
A source has stated that it is “absolutely incorrect” that the agreement between EMI and Apple Corps is a licensing deal, however it does not change the fact that the Beatles are being paid directly by iTunes—the first time a band has ever been.
If this sounds confusing, here is a handy chart to help explain:
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