UK markets closed

Apple's (AAPL) $50M Fund to Support Amateur Indie Musicians

Zacks Equity Research

Apple’s AAPL latest effort to fight the coronavirus pandemic involves struggling indie musicians. Apple Music has launched a $50-million advanced royalty fund, per a RollingStone report, for independent record labels that have a direct distribution deal and earns “at least $10,000 in quarterly Apple Music earnings.”

Apple’s initiative is imperative for the music industry as live programing and album sales came to a screeching halt following the coronavirus-imposed lockdowns, quarantines and social distancing.

While popular concerts and major festivals like Coachella are deferred or canceled entirely, artists like Lady Gaga, Alicia Keys and Sam Smith back-burnered their album releases in the past couple of weeks.

Moreover, music streaming is also showing a declining trend, which does not bode well for companies like Spotify SPOT, Apple Music and Amazon Music.
 

Apple Inc. Price and Consensus

Apple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

 

In fact, Apple Music followed the footprints of Spotify, which launched a COVID-19 music relief project to raise funds for musicians in late March. Spotify also partnered with non-profit organizations, such as MusiCares and Help Musicians, a UK-based charity for musicians.

Apple’s Concerted Efforts to Combat Coronavirus

Tech giants including Apple Microsoft MSFT, IBM and Alphabet GOOGL, backed by their strength in AI, machine learning and data analytics capabilities, are leaving no stone unturned to combat the coronavirus crisis.

For instance, Microsoft unveiled a COVID-19 tracker tool that offers up-to-date infection statistics of each affected country on the tracker. Moreover, the tool provides access to various coronavirus-related articles and other information.

Further, Google launched a website in the United States, which posts data related to coronavirus symptoms, treatment and preventive remedies from the World Health Organization (WHO). Verily, the company’s health-care division, unveiled a COVID-19 screening and testing website under Project Baseline.

Additionally, Apple partnered with CDC, the White House Coronavirus Task Force and Federal Emergency Management Agency (FEMA) to release a new COVID-19 website and a COVID-19 app (currently available on the App Store) in the United States to build more awareness on the highly contagious virus.

Notably, apart from donating more than 20 million face masks globally, this Zacks Rank #3 (Hold) company started manufacturing one million face shields a week, per CEO Tim Cook. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


Free: Zacks’ Single Best Stock Set to Double

Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.

See 5 Stocks Set to Double>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
 
Spotify Technology SA (SPOT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research