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
52 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
52 months ago
Chances of Apple passing the savings on to its customers? About 2%.
.2%
Score: 9 Votes (Like | Disagree)
BMcCoy Avatar
52 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
52 months ago
Chances of Apple passing the savings on to its customers? About 2%.
Score: 6 Votes (Like | Disagree)
Xgm541 Avatar
52 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
52 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

macbook air orange

Apple Developing a Whole New Kind of MacBook Air

Monday June 21, 2021 2:15 am PDT by
Apple is believed to be working on a completely new, high-end version of the MacBook Air, according to recent reports. Bloomberg's Mark Gurman, who often reveals accurate insights into Apple's plans, has repeatedly discussed the company's work on a high-end MacBook Air. Apple analyst Ming-Chi Kuo and leaker Jon Prosser have also referred to a similar MacBook Air model. The high-end...
ios wifi settings

iOS Bug Causes Specific Network Name to Disable Wi-Fi on iPhones

Sunday June 20, 2021 4:15 am PDT by
A wireless network naming bug has been discovered in iOS that effectively disables an iPhone's ability to connect to Wi-Fi. Security researcher Carl Schou found that after joining a Wi-Fi network with the name "%p%s%s%s%s%n" his iPhone's Wi-Fi functionality was left "permanently disabled." Changing a hotspot's SSID did nothing to correct the problem, with even a reboot failing to make a...
purple iphone 12 and 12 mini

iPhone 12 Mini Production Reportedly Ended Earlier Than Expected Due to Relatively Low Sales

Monday June 21, 2021 7:07 am PDT by
Following widespread reports that the iPhone 12 mini has experienced poor sales performance, at least relative to other iPhone 12 models, Taiwanese research firm TrendForce today claimed that production of the device has already ended. According to TrendForce, the iPhone 12 mini "reached End-of-Life ahead of time" during the second quarter of 2021, suggesting that Apple will focus on selling ...
iOS 15 Users Underwhelmed Feature

Users Underwhelmed by iOS 15 and iPadOS 15, Survey Suggests

Monday June 21, 2021 7:17 am PDT by
Users appear to be underwhelmed by Apple's upcoming iOS 15 and iPadOS 15 updates, according to the findings of a new survey by SellCell. The survey asked 3,000 iPhone and iPad users, evenly split between men and women, aged 18 or over in the United States, what they thought of iOS 15, iPadOS 15, and the naming of the upcoming iPhone 13 lineup. Over 50 percent of all of the survey's...
Top Stories 63 Feature

Top Stories: Beats Studio Buds Announced, Apple Watch Series 7 Rumors, and More

Saturday June 19, 2021 6:00 am PDT by
The Apple news cycle started to move beyond WWDC this week, but that doesn't mean there still wasn't a lot to talk about, led by the official debut of the much-leaked Beats Studio Buds that might give us a hint of what to expect for the second-generation AirPods Pro. With no hardware announcements at WWDC, we also took a look at when we might finally see the long-rumored redesigned MacBook...
primeday2020 feature3

Amazon Prime Day: The Best Apple Deals

Monday June 21, 2021 6:15 am PDT by
Amazon's annual Prime Day event has officially kicked off today, beginning 48 hours of discounts, offers, and tons of savings across Amazon's storefront. This includes everything from home electronics to clothing, jewelry, video games, movies, and much more. Note: MacRumors is an affiliate partner with these vendors. When you click a link and make a purchase, we may receive a small payment,...
iOS Spam Calendar Feature

iCloud Users Continue to Be Plagued by Calendar Spam

Monday June 21, 2021 8:51 am PDT by
Despite previous attempts to put the situation at rest, some iCloud users continue to experience spam calendar invitations, causing their calendars to be filled with random events. The situation received widespread coverage in 2016, where Apple said that it was "actively working to address this issue" by "identifying and blocking suspicious senders." Victims are targeted in various ways. The ...
iphone 13 yellow

TrendForce: iPhone 13 Lineup Will Remain Limited to Maximum 512GB of Storage

Monday June 21, 2021 6:33 am PDT by
Apple will likely unveil its next-generation "iPhone 12s" or "iPhone 13" lineup in around two and a half months from now, and ahead of time, Taiwanese research firm TrendForce has outlined its expectations for the devices. A summary of TrendForce's expectations:Apple will unveil four new iPhones in September, including a mini model, a standard model, and two Pro models. September is the...
16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
maxresdefault

Video: 20 Annoyances Apple Fixed in iOS 15 and macOS Monterey

Friday June 18, 2021 11:36 am PDT by
With iOS 15 and macOS Monterey, Apple is adding several quality of life improvements, which are designed to address some of the complaints that people have had with these operating systems for years now. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we're highlighting some of our favorite "fix" features that address long-running problems in iOS and...