Apple Still Negotiating With Music Labels Over Streaming Terms Days Before WWDC Launch

Days before Apple is expected to announce its rebranded and revamped version of Beats Music at WWDC, the Cupertino company is still negotiating terms with music labels, reports Bloomberg. Last month, it was also reported that the two sides had not reached a deal.

beats-music-app-ios

The labels are pushing to get a larger chunk of revenue than they receive under their current deals with Spotify Ltd., a competing streaming service, people familiar with the negotiations said. Both sides want to complete a deal before Apple’s June 8 annual event in San Francisco for more than 5,000 developers, according to the people, who asked not to be named because the talks are continuing.

Currently, labels receive 55% of Spotify's $9.99 monthly rate while publishers take 15%. Music labels are hoping to take closer to 60% from Apple, according to the report. Previously, rumors have suggested that Apple was seeking an agreement that allow it to offer a streaming music service to customers for $7.99 a month rather than the standard $9.99 rate. However, Apple was forced to back down after record labels resisted the change.

Additionally, Apple has allegedly been urging music labels to cease offering licenses for freemium tiers that Spotify and other music services offer as the Cupertino company does not plan to offer a free tier with its new streaming service. These efforts have earned Apple scrutiny from government organizations like the European Commission and U.S. Department of Justice, as the two groups are said to be looking into Apple's negotiations.

It's likely Apple still plans to unveil its new streaming service at WWDC, as the two sides want to complete a deal before June 8's keynote address. The new Music app is said to include the rebranded streaming service, a revamped version of iTunes Radio and traditional downloaded music. Apple also plans to offer exclusive content, like behind-the-scenes video from recording sessions. Artists will also get their own pages where they can host videos, songs and other content for free as part of a program called Apple Connect, with Apple compensating the artists and labels for songs they give away.

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Top Rated Comments

AppleInLVX Avatar
118 months ago
Given the lack of music deal, absence of new Apple TV hardware, and google photos stealing their thunder, this keynote's looking a little like:

- wow, we made a lot of money
- here's what's new with OS X... oh wait, we thought we'd just focus on fixing the existing screw ups.
- Here's what's new with iOS... that thing about fixing screw ups? Yeah, we'll do that there too.
- Dammit, we're PRIVATE! We'll bill the snot out of y'all, but we won't sell your data to anyone! Really! That's why we're great!
- Uh... here's Cold Play.
- Bye... go program something.
Score: 37 Votes (Like | Disagree)
AngerDanger Avatar
118 months ago
I am curious about how one person's Right Now looks…



Attachment Image
Score: 28 Votes (Like | Disagree)
FedUpFanBoy Avatar
118 months ago
I'd prefer Apple fix the bug infested tripe Tim Cook has foisted upon us since Steve died than some lame radio service.
Score: 14 Votes (Like | Disagree)
kds1 Avatar
118 months ago
I'd prefer Apple fix the bug infested tripe Tim Cook has foisted upon us since Steve died than some lame radio service.
Because everything was perfect when SJ was alive. *rolleyes* Get out.
Score: 12 Votes (Like | Disagree)
Rogifan Avatar
118 months ago
But I thought that's why Apple spent $3B on Beats, because Jimmy was their meal ticket to deals with the labels. I saw a tweet from someone the other day who said the U2 album giveaway was one of the worst decisions Eddy Cue has made. It pissed off labels and other artists and now the labels are making negotiations more difficult. Dumb, Apple, Dumb. :rolleyes:
Score: 7 Votes (Like | Disagree)
Tycho24 Avatar
118 months ago
I hate the scumbag labels. They don't care one whit if artists get a dime... they want the maximum amount for doing the LEAST.
Why would Apple pay MORE than Spotify?? Because eventually they have the ability to eclipse Spotify in users and make the labels a boatload more?? So, to your potentially most lucrative partner ever.... may as well try to give them the WORST deals & terms? What clowns. I wish a model would arise destroying them. I'd love it. I'd literally drive to the welfare office to laugh in the face of all the unemployed music execs. They are the bottom feeding thieves that represent 100% of what people are talking about when they mention the "shady" part of the music industry.
Score: 5 Votes (Like | Disagree)