Apple is said to be aiming to reduce the share of revenue record labels get from streaming music as it works to establish new deals for Apple Music and iTunes, reports Bloomberg.

Apple is reportedly pursuing lower rates as part of an effort to revise its "overall relationship" with the music industry. Apple's current deals with record labels expire at the end of June, but Bloomberg's sources say they will be extended if a new agreement can't be reached.

Apple Music iOS 10 iPhone iPad duo
Apple currently pays out some of the highest royalty rates with record labels receiving 58 percent of revenue from Apple Music subscribers, but it wants a deal closer to what Spotify recently negotiated. Spotify pays 52 percent of revenue from subscribers, down from an earlier rate of 55 percent.

Spotify's new rate is contingent on subscriber growth, and music labels are said to be open to negotiating a similar deal with Apple. Record labels also want assurances from Apple that iTunes will be promoted in countries like Germany and Japan, where most music is still purchased rather than streamed.

The growth of Apple Music hasn't been as detrimental to iTunes as labels had feared. But record labels are still asking for precautions. Labels have asked Apple to commit to promoting iTunes, and music in general, in countries where streaming isn't as prevalent.

Since its 2015 introduction, Apple Music has seen steady growth, which may give Apple an upper hand when negotiating new deals with labels. As of June 2017, Apple Music has 27 million paying subscribers, up from 20 million in December of 2016.

Top Rated Comments

omihek Avatar
87 months ago
I tried to lower my housework responsibilities in an effort to revise my "overall relationship" with my wife. It definitely revised the relationship, but not quite how I wanted.
Score: 23 Votes (Like | Disagree)
Jeff Flowerday Avatar
87 months ago
Chances of Apple passing the savings on to its customers? About 2%.
.2%
Score: 9 Votes (Like | Disagree)
BMcCoy Avatar
87 months ago
If they could negotiate that more of that record company share actually went to the artists, THAT would be a victory.
As it stands. Artists receive 0.000000something%
Unless the revenue distribution is radically challenged, there won't be any new music in the future...
Score: 9 Votes (Like | Disagree)
Cloudkicker Avatar
87 months ago
Chances of Apple passing the savings on to its customers? About 2%.
Score: 6 Votes (Like | Disagree)
Xgm541 Avatar
87 months ago
If they could negotiate that more of that record company share actually went to the artists, THAT would be a victory.
As it stands. Artists receive 0.000000something%
Unless the revenue distribution is radically challenged, there won't be any new music in the future...
Lol out of all the doomsayers around here this must be the funniest one I've read in a while.

Will we get less Taylor Swift's ? Maybe. But many many artists create music for other reasons than profit.

I am not saying the current distribution is fair and does not need to get looked at, but to say nobody will make music is not accurate
Score: 6 Votes (Like | Disagree)
Ries Avatar
87 months ago
If they could negotiate that more of that record company share actually went to the artists, THAT would be a victory.
As it stands. Artists receive 0.000000something%
Unless the revenue distribution is radically challenged, there won't be any new music in the future...
Don’t sign ripoff deals with music labels and pocket it all yourself.
Score: 4 Votes (Like | Disagree)

Popular Stories

General Apps Messages

Apple Announces 'Groundbreaking' New Security Protocol for iMessage

Wednesday February 21, 2024 6:00 am PST by
Apple today announced a new post-quantum cryptographic protocol for iMessage called PQ3. Apple says this "groundbreaking" and "state-of-the-art" protocol provides "extensive defenses against even highly sophisticated quantum attacks." Apple believes the PQ3 protocol's protections "surpass those in all other widely deployed messaging apps," according to its blog post:Today we are announcing...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

Six Reasons to Wait for Next Year's iPhone 17

Thursday February 22, 2024 4:20 am PST by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models concurrently, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different, and already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
iOS 17

iOS 17.4 Will Add These New Features to Your iPhone

Monday February 19, 2024 6:52 am PST by
Apple last month confirmed that iOS 17.4 will be released in March, and the update includes several new features and changes for the iPhone. Key new features in iOS 17.4 include major App Store changes in the EU and Apple Podcasts transcripts. The update also adds new emoji and includes preparations for the launch of next-generation CarPlay later this year. More details about the new...
iPhone Notch

Apple Explored These Notch and Dynamic Island Designs for iPhones

Friday February 23, 2024 2:05 pm PST by
With the iPhone 14 Pro models in 2022, Apple introduced the Dynamic Island, which can morph and expand to display system alerts, sports scores, and a variety of other information. The feature makes the space surrounding the front camera and Face ID sensors useful compared to the notch on older iPhone models. Apple explored a variety of ideas for the iPhone's notch area over the years before...
Oled iPads and MackBook Pro Notch

Apple's OLED Roadmap: New iPad Mini, Foldable iPad Pro, and More

Wednesday February 21, 2024 5:29 am PST by
Apple is planning to launch at least nine new devices with OLED displays across the iPad and MacBook product lines, according to an updated forecast from research firm Omdia that sets out the company's plans in detail. As widely rumored, Apple's push to transition to OLED will apparently be jump-started by the release of new 11- and 13-inch iPad Pro models this year. The displays will...
Next Generation CarPlay Porsche 1

Apple Launching Next-Generation CarPlay This Year With These New Features

Wednesday February 21, 2024 2:03 pm PST by
Apple recently updated its website to confirm that the first vehicle models with next-generation CarPlay support will debut "in 2024." This wording is shown on Apple's regional websites for the U.S., Canada, Australia, New Zealand, and many other countries. The iOS 17.4 beta includes code-level references to eight new CarPlay apps:Auto Settings: This app will let you manage paired iPhones...
cracked glass vision pro

Handful of Apple Vision Pro Units Develop Identical Crack in Cover Glass

Friday February 23, 2024 4:46 am PST by
A small number of Apple Vision Pro owners have claimed that their headsets developed a hairline crack down the middle of the front cover glass, despite having never been dropped or mishandled. Photo of hairline crack in Vision Pro front glass (credit: Reddit user Inphenite) The first report was posted in the subreddit /r/VisionPro about 18 days ago, and several more have appeared in the last...
iPad Pro OLED Feature 2

Apple's Upcoming OLED iPad Pro Models Rumored to Be Much Thinner

Tuesday February 20, 2024 1:39 pm PST by
Apple is planning to update the iPad Air and iPad Pro lineups as soon as March, and the new iPad Pro models will be significantly thinner according to dimensions shared by 9to5Mac. Citing sources with knowledge of Apple's plans, the site claims that the larger version will be more than 1mm thinner. The current 12.9-inch iPad Pro measures in at 6.4mm thick, but the new model is said to be 5mm ...