Apple offers reward to artists

Apple Inc. is offering incentives to artists and record labels to produce music using a spatial-audio technology that surrounds listeners in sound.

Starting next year, the company plans to give added weight to streams of songs that are mixed in Dolby Atmos technology, according to people with knowledge of matter.

That could mean higher royalty payments for artists who are first to embrace the technology made by Dolby Laboratories Inc., said the people, who asked not to be identified because the change hasn’t been announced.

Listeners wouldn’t necessarily have to play the Atmos version of a song for artists to benefit. It only matters that the song is offered in that format.

The new policy will encourage artists and labels to record and mix music with Atmos – including older tracks.

Mixing music in Atmos is broadly affordable, according to the people, making it worthwhile for established artists and labels to participate in the hope of seeing a boost in royalties.

Apple’s audio hardware, including AirPods and the HomePod, a small speaker, support Atmos playback. With more tracks available in spatial audio, consumers might want to purchase additional Apple hardware

Apple declined to comment.

Apple first introduced spatial audio to Apple Music in 2021. Supported by technology from Dolby Atmos, the format attempts to more closely mimic the way music sounds in-person where it can come from various points around the listener’s head.

Amazon Inc.’s Music app also offers Dolby Atmos-supported spatial audio to its users as part of their subscriptions at no extra cost. Spotify Technology SA doesn’t support the format.

Walgreens rating cut to junk status

Walgreens Boots Alliance Inc. had its senior unsecured credit rating cut to junk by Moody’s Investors Service, with the credit grader citing the drugstore chain’s high debt relative to earnings and risks associated with its push to offer more healthcare services.

The downgrade to Ba2 – two steps into high-yield – reflects “Walgreens’ stubbornly high financial leverage, weak interest coverage and pressured free cash flow that Moody’s believes will be sustained over the next 12-18 months,” senior credit officer Chedly Louis wrote in a note Tuesday.

“We are disappointed by Moody’s decision today and the limited timeframe given to demonstrate the results of our deleveraging efforts and planned actions to improve underlying business performance,” a representative for Walgreens said in a statement.

Walgreens shares fells as much as 2.9% following the downgrade, erasing an earlier gain.

Walgreens still carries the lowest investment-grade rank from S&P Global Ratings, and it isn’t rated by Fitch Ratings.

Companies that are cut to junk by two credit graders are deemed “fallen angels” and have their debt move to high-yield indexes.

From wire reports