Apple Seeking Lower Rates With Record Labels as Initial Deals Start Expiring

by

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 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

(View all)
Avatar
43 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)
Avatar
43 months ago

Chances of Apple passing the savings on to its customers? About 2%.

.2%
Score: 9 Votes (Like | Disagree)
Avatar
43 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)
Avatar
43 months ago
Chances of Apple passing the savings on to its customers? About 2%.
Score: 6 Votes (Like | Disagree)
Avatar
43 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)
Avatar
43 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)

Top Stories

Hands-On With iOS 14 Widgets, Custom Icons, and Home Screen Setup

Tuesday September 22, 2020 3:25 pm PDT by
Apple with iOS 14 introduced widgets on the Home Screen, leading to unprecedented levels of customization for the iPhone. Combined with Shortcuts that let you change an app's icon, iOS 14 lets you create a whole new look for your Home Screen. Subscribe to the MacRumors YouTube channel for more videos. We've been following along with some of the creative alternative Home Screen designs that M...

New Images Leak of iPhone 12 Braided USB-C to Lightning Cable

Thursday September 24, 2020 2:37 am PDT by
Rumors suggest Apple's upcoming iPhone 12 models will ship with a new Lightning to USB-C cable that includes a braided fabric design. Images of the purported cables were leaked in July, and today leaker Mr White has shared new images that give us a closer look at what we might get included in the iPhone 12 box. The photos show a USB-C to Lightning cable with a clearly braided design rather...

Apple's iPhone 12 Event Could Happen on October 13 Based on Rumors From Mobile Operators

Wednesday September 23, 2020 11:51 am PDT by
Apple's upcoming iPhone-centric event could perhaps be held on Tuesday, October 13, according to information shared with MacRumors by an employee at a UK cellular carrier. There's no way for us to confirm the dates at this point in time nor are we sure on the credibility of the source, but even without a rumor, Tuesday, October 13 is a good guess based on Apple's historic launch timelines, ...

New Version of Microsoft Office Coming Next Year That Won't Require a Subscription

Thursday September 24, 2020 1:53 am PDT by
Microsoft will next year offer a new perpetual release of Microsoft Office for Mac and Windows that doesn't require a subscription to use, according to the software giant (via Windows Central). "Microsoft Office will also see a new perpetual release for both Windows and Mac, in the second half of 2021," said Microsoft in a blog post announcing the next version of its Exchange server,...

Interest in iOS 14 Home Screen Ideas Helps Pinterest Break Daily Download Record

Wednesday September 23, 2020 4:37 am PDT by
Apple's introduction of widgets on the Home Screen in iOS 14 has driven a surge in interest among users looking to customize their iPhone, and that has reportedly had a knock-on effect for Pinterest, whose iOS app has seen record downloads as users flock to its content seeking design inspiration. As reported by TechCrunch, App Store intelligence firm Apptopia was first to note the impact of ...

'iPhone 12 mini' Name Reappears in Leaked Apple iPhone 12 Case Stickers

Friday September 25, 2020 1:58 am PDT by
Earlier this week a proven leaker claimed that the iPhone 12 lineup would be named "iPhone 12 mini," "iPhone 12," "iPhone 12 Pro," and "iPhone 12 Pro Max," and today the same nomenclature has appeared again in a photo depicting alleged stickers from unreleased Silicone iPhone cases originating from Apple's international distribution center in Ireland. The photo shows three stickers with the...

Apple Releases iOS 14.0.1 With Fix for Bug That Resets Default Apps After Rebooting

Thursday September 24, 2020 10:12 am PDT by
Apple today released iOS 14.0.1, the first update to the iOS 14 operating system that was released on September 16. Today's update is a bug fix update addressing issues that weren't able to be fixed in the initial iOS 14 launch. The iOS 14.0.1 update is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General > Software Update. ...

Apple Emphasizes That Solo Loop May Increase in Length Over Time, Updates Sizing Guide With More Specific Instructions

Wednesday September 23, 2020 8:26 am PDT by
Apple on Tuesday updated one of its support documents to emphasize that the new silicone rubber Solo Loop for the Apple Watch may increase in length over time, as mentioned in fine print at the bottom of the Solo Loop product page. Apple has also updated its printable Solo Loop sizing guide with more specific instructions, as noted by 9to5Mac's Michael Steeber. The guide now advises users to ...

iOS 14 Widgets Offer iPhone Users Creative Home Screen Ideas

Sunday September 20, 2020 8:43 pm PDT by
Updated on September 22nd with hands on video. In iOS 14, Apple introduced ‌the concept of Home Screen‌ widgets, which provide information from apps at a glance. Widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. Despite the relative lack of...

Kuo: Mini-LED Displays to Debut in Apple's Next iPad Pro

Tuesday September 22, 2020 11:45 pm PDT by
Following his report earlier this week indicating that Apple will be accelerating adoption of mini-LED displays in its iPad and Mac notebook lineups thanks to better than expected development from potential secondary supplier Sanan Optoelectronics, analyst Ming-Chi has released a new report today sharing a bit more perspective on the mini-LED display market as it relates to Apple. Kuo says...