Apple will reportedly offer indie music publishers a headline rate of 13.5% revenue, higher than the 12% it pays for iTunes Match and 10% it pays for iTunes Radio. Apple will pay indie labels slightly higher rates than the industry standard, contributing to Apple Music's overall 71.5% revenue sharing, in return for making no royalty payments during the three-month free trial it will offer consumers.
"That free trial, with no payments being made to rights holders, precluded Apple from taking advantage of the statutory licenses that most interactive streaming services use. Under that statutory license, Apple must send notices of intent (NOIs) to publishers with a list of the songs they plan to use, and then make payment to publishers using a three-tier formula approved by the Copyright Royalty Board."The 13.5% headline rate is reportedly part of a larger payment formula that will be used to determine royalties paid to rights holders.
Apple Music was announced last week as an all-in-one streaming music service, live global radio station and social platform for artists to connect with fans. The subscription-based service will be available June 30 for $9.99 per month after a three-month free trial period for iPhone, iPad, iPod touch, Mac and PC. Apple TV and Android versions of the service will be available in the fall.