Apple pays iTunes Festival performers with promotion instead of cash, Kanye West says
Rapper Kanye West continued his French charm offensive on Friday, once again panning Apple's approach to recruiting talent for its annual iTunes Festival, and in the process revealing that the iPhone maker compensates performers with increased promotional space in the iTunes store rather than cash.

Miami rapper Pitbull performing at the 2014 iTunes Festival in Austin, Texas
"I know you might have heard about this thing where I was on stage, like calling Tim Cook out and saying why do you have these guys performing at South by Southwest and you don't want to pay them," West said in an interview at the Cannes Lions festival. "You just want to give us extra space on the iTunes page and stuff, you know."
While not the first time West has commented on the matter, he had not previously said what Apple was offering -- if anything -- in return for artists' participation in the traditionally month-long festival, for which Apple does not charge admission. The company also streams live and recorded video of each show for free to owners of Macs, iOS devices, and Apple TVs.
Despite the Yeezus performer's disapproval, placement on the iTunes store is hugely valuable for artists. Apple's digital storefront accounts for more than 60 percent of the world's digital music market and a correspondingly large portion of overall music sales.
Those digital sales are declining, however, prompting Apple to explore alternatives in the increasingly important streaming space. Following the lackluster debut of iTunes Radio -- considered a mediocre success at best despite its 40 million listeners -- Apple purchased Beats Electronics, purveyors of premium headphones and a rapidly-growing subscription streaming service dubbed Beats Music.
The latter tie-up met with West's approval, as the newest Kardashian praised the addition of rap legend Dr. Dre and Interscope Records cofounder Jimmy Iovine to Apple's executive team following the acquisition.
"Jimmy Iovine and Dr. Dre, it's that they are geniuses. Both of them are cultural geniuses, what they had done for so many years." he said. "And they just, they connected with the right company, by the way. It'

Miami rapper Pitbull performing at the 2014 iTunes Festival in Austin, Texas
"I know you might have heard about this thing where I was on stage, like calling Tim Cook out and saying why do you have these guys performing at South by Southwest and you don't want to pay them," West said in an interview at the Cannes Lions festival. "You just want to give us extra space on the iTunes page and stuff, you know."
While not the first time West has commented on the matter, he had not previously said what Apple was offering -- if anything -- in return for artists' participation in the traditionally month-long festival, for which Apple does not charge admission. The company also streams live and recorded video of each show for free to owners of Macs, iOS devices, and Apple TVs.
Despite the Yeezus performer's disapproval, placement on the iTunes store is hugely valuable for artists. Apple's digital storefront accounts for more than 60 percent of the world's digital music market and a correspondingly large portion of overall music sales.
Those digital sales are declining, however, prompting Apple to explore alternatives in the increasingly important streaming space. Following the lackluster debut of iTunes Radio -- considered a mediocre success at best despite its 40 million listeners -- Apple purchased Beats Electronics, purveyors of premium headphones and a rapidly-growing subscription streaming service dubbed Beats Music.
The latter tie-up met with West's approval, as the newest Kardashian praised the addition of rap legend Dr. Dre and Interscope Records cofounder Jimmy Iovine to Apple's executive team following the acquisition.
"Jimmy Iovine and Dr. Dre, it's that they are geniuses. Both of them are cultural geniuses, what they had done for so many years." he said. "And they just, they connected with the right company, by the way. It'
Comments
Pay Kanye in fish sticks.
Oh, and also... **** him.
Plus, I always thought of the iTunes Festival, as well as many other festivals, as fan driven events for the people who support talents and talents that want to support fans, not as profit driven events.
But his perspective makes sense too, so I can't rail on him. That and I'm not really too knowledgable on the revenue system in the music Market.
Not sure this is a valid criticism. No artist is obligated to play the iTunes festival. Those who do must believe that promotional space (the lifeblood of the industry) is worth it. On a larger note, musicians and singers have a skill or innate talent that many of the rest of us simply don't have. And it's a talent that allows them to create something that many find moving, uplifting, beautiful, etc. But does this imply that they should be rewarded with anything more than the market will bear. If that means almost nothing for most struggling artists playing local venues, well, that's a reflection that there are so many available to offer their services as musical entertainers. There's another innate capability that a large number of people share that I don't; about half the population is able to grow and birth a baby. As a male, I don't have that capability. And the creation of a baby, like music, can be something moving, uplifting, and beautiful, but that doesn't mean people should be paid to create them. You make a baby because you have a strong desire to do so. You make music because you have a strong desire to do so. Each is its own reward. Quit complaining because so many others are doing it that you can't make a living at it. Go find other work, make your music for its own sake and your own enjoyment and be happy. NEXT!
So, What he's really saying, is that record labels that get iTunes sales from the Festival, are not compensating artists for sales of albums? Huh..
Well, Kanye and Kim have enough money to create their own label.. if he hasn't already.
What's the story here? Who cares if Apple compensates musicians with something other then cash so long as both parties voluntarily agree to the terms?
I'd pay cash, to not see him.
1. Bartering is a moral wrong. It says so in the Bible. Or... something. Also, paying in cash is a moral wrong if the last digit is a 4. And artists should be paid on a Monday or a Tuesday. There are right ways and wrong ways to pay people. Apple should know these rules.
2. What's worse than bartering? Coercion! These artists were clearly FORCED to perform against their will. They did not like the offer Apple made, but they had no choice. This is sickening. As if being a successful music star isn't already hard enough.
3. Did you also know that Apple makes these musicians live in massive dormitories? They eat sleep, and play their music all a single venue, sometimes even performing late into the night. Up to 10,000 of these artist slaves may be encamped in one massive compound. And they have to catch rats for food.
You couldn't pay me to listen to what Kanye calls music. So we're even.
Good for Kanye shinging a light on these evil deeds. A few obvious points:
1. Bartering is a moral wrong. It says so in the Bible. Or... something. Also, paying in cash is a moral wrong if the last digit is a 4. And artists should be paid on a Monday or a Tuesday. There are right ways and wrong ways to pay people. Apple should know these rules.
2. What's worse than bartering? Coercion! These artists were clearly FORCED to perform against their will. They did not like the offer Apple made, but they had no choice. This is sickening. As if being a successful music star isn't already hard enough.
3. Did you also know that Apple makes these musicians live in massive dormitories? They eat sleep, and play their music all a single venue, sometimes even performing late into the night. Up to 10,000 of these artist slaves may be encamped in one massive compound. And they have to catch rats for food.
Thank goodness for sarcasm!
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I wouldn't pay Kanye to scrub my toilets, let alone paying for him to perform anything.
He's a huge douchebag (and a racist POS), and he can go F.ck himself.
Apple sure seems to be associating with a lot of douchebags lately.
Well, Kanye and Kim have enough money to create their own label.. if he hasn't already.
Question is, who would give a damn enough to make such a venture profitable?
Apple should instead pay Kanye 100% of the revenue from iTunes Festival (i.e., zilch, nada, not even front page promo time).
By the way, I would hazard to guess Kanye Werst has violated a confidentiality agreement by disclosing this.
I would also hazard to guess Kanye is extremely jealous of Dr. Dre.
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They are being paid. Why does currency have to be cash?
Because cash gives you the option to use your compensation they way YOU want to, not the way the person paying you wants to. What if instead of paying you in cash your employer compensated you with goods and or services from their company? What's the big diff, right? It's compensation, right? Umm, somehow I don't think most people would feel that way. I think Kanye West is the epitome of a meglomaniac, but I do think he has a valid gripe.
...and this differs from putting on a free gig to increase exposure, say for a radio station, in what way?
Sounds like this guy's nothing but a gold digger, like in that old Ray Charles song.
You all realize he's pissed because he had nothing to do with the Beats deal and that's he's jealous Dre is getting attention. Someone needs to prescribe a pallet of Xanax to him.
Because cash gives you the option to use your compensation they way YOU want to, not the way the person paying you wants to. What if instead of paying you in cash your employer compensated you with goods and or services from their company? What's the big diff, right? It's compensation, right? Umm, somehow I don't think most people would feel that way. I think Kanye West is the epitome of a meglomaniac, but I do think he has a valid gripe.
But participating in iTunes Festival is a choice. Artists either accept the terms or they don't. Increased promotion at iTunes results in increased sales, which is cash in their pocket, so they are being paid in cash, just indirectly. It's not like Apple is asking them to perform for nothing, and it's not like Apple is pocketing ticket fees. It's a free concert.
Apple and iTunes are major forces that re-energized the music industry, creating many very rich artists. Why bite the hand that feeds you?