The recently created American Association of Independent Music has confirmed that both Apple and Microsoft are planning on increasing the wholesale payout they make to independent record labels in the States who sell their music via iTunes or the MSN music store.
As far as Apple is concerned, the indication is that labels will receive five cents more per track sold - 70 cents instead of 65 cents. While each record label's contract with Apple is confidential, insiders say that will put independents on pretty much the same rates as those received by the major record companies.
Microsoft have also said they will raise the payout to independent labels so that it is more in line with the rates paid to majors. That will apply to both Microsoft's pay-per-track platform and their planned subscription service.
Quite what role the American Association Of Independent Music, barely a month old, played in Apple and Microsoft's new found generosity to the independent sector is not entirely clear, although the Association's president, Don Rose, while not taking credit for the payout increase, says by working collectively the independent sector has more power in the digital music space because, between them, they control a large number of leading artists. Rose: "Not to take any specific credit, but I think this does demonstrate the power of a collective approach".
Whether a similar increase will be made in payments made to UK indies remains to be seen - though the problem with Apple (in particular) over here isn't so much the deal they offer the independents, more their inability to return phone calls.