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
67 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
67 months ago
Chances of Apple passing the savings on to its customers? About 2%.
.2%
Score: 9 Votes (Like | Disagree)
BMcCoy Avatar
67 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
67 months ago
Chances of Apple passing the savings on to its customers? About 2%.
Score: 6 Votes (Like | Disagree)
Xgm541 Avatar
67 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
67 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

airpods pro black background

AirPods Pro 2: Five New Features and Improvements to Expect

Sunday August 14, 2022 3:28 pm PDT by
Apple's second-generation AirPods Pro are finally nearing launch, with a release expected later this year. If you are considering upgrading to the new AirPods Pro once they are released, keep reading for a list of five new features to expect. In addition to all-new features, the second-generation AirPods Pro will likely adopt some features added to the standard AirPods last year. H2 Chip ...
iPhone 14 Dummies 1 Feature

Everything Rumored for Apple's September Event: iPhone 14, Apple Watch Pro and More

Friday August 12, 2022 2:34 pm PDT by
There's just about a month to go until Apple holds its annual September event focusing on new iPhone and Apple Watch models. We thought we'd take a quick look at everything that's rumored for Apple's September event to give MacRumors readers a rundown on what to expect when the first fall event rolls around. iPhone 14 The iPhone 14 can probably be described more as an "iPhone 13S" because...
10th Generation iPad Render

10th-Generation iPad With Major Design Changes Reportedly in Production Ahead of September Launch

Monday August 15, 2022 8:02 pm PDT by
Apple's rumored 10th-generation iPad is currently in production and will feature "major" design changes, according to a report from Taiwanese website DigiTimes. A mockup of the potential 10th-generation iPad design by Renders By Shailesh The report did not provide any specific details about the 10th-generation iPad's new design, but rumors suggest the device will feature a larger 10.5-inch...
ios 16 lock screen feature2

Apple Seeds Sixth Betas of iOS 16 and iPadOS 16 to Developers [Update: Public Beta Available]

Monday August 15, 2022 10:04 am PDT by
Apple today seeded the sixth betas of upcoming iOS 16 and iPadOS 16 updates to developers for testing purposes, with the updates coming a week after Apple released the fifth developer betas. Registered developers can download the iOS and iPadOS 16 profiles from the Apple Developer Center, and once installed, the betas will be available over the air. iOS 16 introduces a revamped Lock...
apple watch se

Apple Watch SE vs. Apple Watch Series 8: New Features to Expect If You've Waited to Upgrade

Monday August 15, 2022 2:44 am PDT by
The Apple Watch SE was announced in September 2020 and has been a popular Apple Watch model for customers looking for their first smartwatch or an affordable Apple Watch. Apple Watch SE customers may be wondering, however, what's in store for them with the upcoming Apple Watch Series 8 and what new features they can expect. Continue reading to find out. Apple Watch SE vs. Apple Watch Series ...
odyssey ark 1

Samsung Launches $3,500 'Odyssey Ark' 55-Inch Curved Gaming Display

Monday August 15, 2022 7:15 am PDT by
Samsung today announced the launch of the Odyssey Ark, which the company says is the world's first 55-inch 4K curved display with a 165Hz refresh rate for improved gaming performance. Samsung first previewed the monitor at CES, but it is now available to order. Subscribe to the MacRumors YouTube channel for more videos. Priced at $3,500, the Samsung Odyssey Ark features mini-LED technology...
top stories 13aug2022

Top Stories: New Battery Percentage Icon in iOS 16, USB-C AirPods Rumor, and More

Saturday August 13, 2022 6:00 am PDT by
This week brought some shocking news for iOS 16 beta testers, with Apple bringing back the iPhone battery percentage to the status bar after a number of years. Other news and rumors this week included word that Apple has started recording portions of its media event planned for next month to introduce the iPhone 14 and Apple Watch Series 8, claims about iPhone 14 Pro pricing and Apple's...