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.

Top Rated Comments

AppleInLVX Avatar
91 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
91 months ago
I am curious about how one person's Right Now looks…



Attachment Image
Score: 28 Votes (Like | Disagree)
FedUpFanBoy Avatar
91 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
91 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
91 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
91 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)

Popular Stories

maxresdefault

Unbox Therapy Shares Hands-On Look at iPhone 14 Pro Max Replica

Monday May 16, 2022 4:40 am PDT by
YouTuber Unbox Therapy has shared a hands-on look at the iPhone 14 Pro Max using what he claims is a one-to-one replica created by third-party case makers with access to detailed schematics and dimensions for Apple's new upcoming flagship smartphone. As with the iPhone 13 Pro lineup, in 2022, we are expecting a 6.1-inch iPhone 14 Pro and a 6.7-inch iPhone 14 Pro Max, but this time the Pro...
macOS Monterey 2

Apple Releases macOS Monterey 12.4 With Support for Studio Display Webcam Update

Monday May 16, 2022 10:10 am PDT by
Apple today released macOS Monterey 12.4, the fourth major update to the macOS Monterey operating system that launched in October 2021. macOS Monterey 12.4 comes over two months after the launch of macOS Monterey 12.3, an update that added Universal Control. The ‌‌‌‌‌macOS Monterey‌‌ 12.4 update can be downloaded on all eligible Macs using the Software Update section of System...
iOS 15

Apple Releases iOS 15.5 and iPadOS 15.5 With Wallet and Podcast Updates

Monday May 16, 2022 10:00 am PDT by
Apple today released iOS 15.5 and iPadOS 15.5, the fifth major updates to the iOS and iPadOS 15 operating systems that were initially released in September 2021. iOS and iPadOS 15.5 come a little over two months after the launch of iOS 15.4 and iPadOS 15.4. The iOS 15.5 and iPadOS 15.5 updates can be downloaded for free and the software is available on all eligible devices over-the-air in...
iOS 16 mock for article

Gurman: iOS 16 to Include New Ways of System Interaction and 'Fresh Apple Apps'

Sunday May 15, 2022 6:14 am PDT by
iOS 16 will include new ways of interacting with the system and some "fresh Apple apps," Bloomberg's Mark Gurman has said, offering some more detail on what Apple has in store for the upcoming release of iOS and iPadOS set to be announced in a few weeks at WWDC. In the latest edition of his Power On newsletter, Gurman wrote that while iOS 16 is not likely to introduce a major face-lift to...
Prosser Series 8 3

Apple Watch Series 8 Rumored to Feature New Design With Flat Display

Wednesday May 18, 2022 6:21 am PDT by
The Apple Watch Series 8 could feature an all-new design with a flat display, according to the leaker known as "ShrimpApplePro." In his latest video on the YouTube channel Front Page Tech, Jon Prosser highlighted information from ShrimpApplePro that suggests the Apple Watch Series 8 could feature a flat display in what seems to be a design originally rumored for the Apple Watch Series 7. ...
Whatsapp Feature

WhatsApp to Let Users Leave Group Chats 'Silently' and View Rich Link Previews in Status Updates

Tuesday May 17, 2022 3:07 am PDT by
WhatsApp is working on a new feature that will allow users to "silently" leave group chats hosted by the messaging platform instead of all members of the group being notified when they do. As it stands, when someone leaves a group chat, WhatsApp announces their exit to the entire group, making the act of leaving very public. It's not possible right now to leave a group quietly, but WhatsApp...
apple tv 4k design green

Apple Releases tvOS 15.5 for Apple TV HD and Apple TV 4K

Monday May 16, 2022 9:57 am PDT by
Apple today released tvOS 15.5, the fifth major update to the tvOS operating system that first launched in September 2021. tvOS 15.5 comes more than two months after the release of tvOS 15.4, an update that brought support for captive WiFi networks. tvOS 15.5 can be downloaded over the air on the Apple TV through the Settings app by going to System > Software Update. ‌‌‌‌‌‌Apple...