As Apple's original Apple Music deals with record labels begin expiring, Apple has been pursuing lower streaming rates as it negotiates new deals. Apple recently reached a deal with Warner Music Group, reports Bloomberg, and the Cupertino company was indeed able to secure a lower rate.

applemusic
Warner Music Group will provide Apple with a catalog that includes Ed Sheeran, the Red Hot Chili Peppers, Bruno Mars, and more, for iTunes, the online store, and Apple Music. Apple will be paying Warner Music Group a smaller percentage of sales from Apple Music subscribers than it did in its original deal. Apple is also close to a deal with Sony Music Entertainment, but is still negotiating with Universal Music Group.

Large technology companies and music rights holders are establishing a framework this year for how to share proceeds from on-demand streaming, now the dominant source of sales for the record business in the U.S. Music rights holders are willing to accept a slightly smaller share of the sales from on-demand services, provided those services continue to sign up paying subscribers at a high rate.

Apple began aiming for a lower rate after Spotify was able to secure a rate reduction. Since 2015, Apple has been paying labels 58 percent of revenue from Apple Music subscribers, while Spotify was paying 52 percent. Apple is now said to be considering providing labels with a 55 percent cut, with that number decreasing should Apple meet certain subscriber number targets.

Since its debut in June of 2015, Apple Music has seen steady growth, undoubtedly giving the company an upper hand when negotiating new deals with labels. As of June 2017, Apple Music had 27 million paying subscribers.

Top Rated Comments

riverfreak Avatar
48 months ago
Awesome news. Greedy artists are getting paid way too much for making content. Only the management and infrastructure people should be entitled to profit.
Score: 24 Votes (Like | Disagree)
Mirice99 Avatar
48 months ago
That's wondeful, content creator make even less while Apple makes even more money.
Score: 12 Votes (Like | Disagree)
OldSchoolMacGuy Avatar
48 months ago
So let's be realistic here for a second. None of this is going to be passed on to the customer and will result in artist being payed less. Then we will have a bunch of artist pulling their music from streaming services.
And yet none of them have been successful without streaming. Sorry, but streaming is the norm now. It would be like refusing to be played on the radio back in the '80s or '90s. You simply couldn't have become successful without it. Every industry has their necessary evils.

Artists use to take more profits from their albums. Now they're only paid for the songs which are played. This can still make them insane money. More than they would have selling albums, as now you don't just get paid 1 time but every time someone listens to a song.

But they're also realizing they need to do more if they want the mega-millions to roll in. Touring is becoming a bigger part of how the big acts make money. I don't see anyone complaining that streaming is causing their favorite artist to come to town more often.

The big names now even richer than ever before. Streaming isn't hurting them. And the truth is the smaller acts never saw huge album sales before anyways. The current state of streaming opens those small guys up to people who would never have paid to check out their album but are now paying them by listening to their songs. In this way it has spread the wealth across more small acts than in the past. On average people are listening to more than double the number of artist they did 10 years ago, and that's great for the music industry.
Score: 7 Votes (Like | Disagree)
goobot Avatar
48 months ago
So let's be realistic here for a second. None of this is going to be passed on to the customer and will result in artist being payed less. Then we will have a bunch of artist pulling their music from streaming services.
Score: 6 Votes (Like | Disagree)
JeffyTheQuik Avatar
48 months ago
Cool! I'm looking forward to them passing on the savings!

oh...

Cool! I'm looking forward to them passing on the profits in dividends!
Score: 5 Votes (Like | Disagree)
Jakewilk Avatar
48 months ago
I guess this means less subscription money spent paying music labels and more money spent making carpool karaoke episodes?
Score: 5 Votes (Like | Disagree)

Top Stories

tile sticker e1570533758981

Tile CEO: 'We Welcome Competition From Apple, But We Think It Needs to Be Fair'

Tuesday May 4, 2021 9:51 am PDT by
Just after Apple announced its AirTags, Tile CEO CJ Prober relayed his concerns about competing with Apple in the tracking space, and said that Tile would ask Congress to investigate Apple's business practices specific to Find My and item trackers. Prober this week did an interview with Bloomberg, where he further expanded on Tile's complaints about Apple and why he feels that Tile is...
signal instagram ads3

Signal Shares the Instagram Ads Facebook Doesn't Want You to See

Wednesday May 5, 2021 1:29 am PDT by
Encrypted messaging app Signal has had a series of Instagram ads blocked from the social media platform, after it attempted to show users how much data the Facebook-owned company collects about them and how it's used to push targeted ads. In a blog post, Signal described how it generated the ads to show users why they were seeing them, simply by declaring upfront the information that the...
tracking disabled ios 14 5

Analytics Suggest 96% of Users Leave App Tracking Disabled in iOS 14.5

Friday May 7, 2021 1:51 am PDT by
An early look at an ongoing analysis of Apple's App Tracking Transparency suggests that the vast majority of iPhone users are leaving app tracking disabled since the feature went live on April 26 with the release of iOS 14.5. According to the latest data from analytics firm Flurry, just 4% of iPhone users in the U.S. have actively chosen to opt into app tracking after updating their device...
fortnite apple logo 2

Epic CEO Tim Sweeney Admits App Store's 30% Cut Is Similar to Consoles, Would Have Accepted Special Deal With Apple

Tuesday May 4, 2021 1:54 pm PDT by
Apple's legal battle with Epic Games is continuing on, and during the second day of the trial, Epic Games' CEO Tim Sweeney continued his testimony against Apple. Sweeney was grilled by Apple's lawyers, and made several points seemingly favorable to Apple. In addition to mentioning how he prefers Apple's iPhone and values Apple's privacy policies that he's aiming to dismantle, Sweeney...
snapchat dark mode

Snapchat Rolls Out Dark Mode on iOS

Wednesday May 5, 2021 1:17 am PDT by
Nearly two years following the release of iOS and iPadOS 13, which included native, built-in, and systemwide dark mode, Snapchat, one of the world's most prominent social media networks, has finally rolled out a dark mode theme for iOS users. Snapchat began testing a dark mode theme of its app design late last year with a small group of iOS users. Now, Snapchat says that as of this week, it...
netflix sign up

Apple Discussed 'Punitive Measures' Against Netflix for Dropping In-App Purchases

Wednesday May 5, 2021 11:03 am PDT by
As the Epic Games v. Apple trial progresses into its third day, Apple's internal documents and communications with various companies are continuing to surface, giving us some insight into the dealings that Apple has had around the App Store. Back in December 2018, Netflix stopped offering in-app subscription options for new or resubscribing members and instead began requiring them to sign up ...
iphone 12 preorder purple

Apple Begins Transition to Randomized Serial Numbers With Purple iPhone 12

Wednesday May 5, 2021 9:17 am PDT by
MacRumors previously reported about Apple's plan to switch to randomized serial numbers for future products starting in early 2021, and this transition has now started with the new purple iPhone 12 model in multiple countries. With assistance from Aaron Zollo, host of the YouTube channel ZolloTech, we can confirm that the purple iPhone 12 released last month has a new 10-character serial...
airtag 1

AirTag Anti-Stalking Measures 'Just Aren't Sufficient' Says Washington Post Report

Wednesday May 5, 2021 6:03 pm PDT by
The safeguards that Apple built into AirTags to prevent them from being used to track someone "just aren't sufficient," The Washington Post's Geoffrey Fowler said today in a report investigating how AirTags can be used for covert stalking. Fowler planted an AirTag on himself and teamed up with a colleague to be pretend stalked, and he came to the conclusion that the AirTags are a "new means...
iphone 13 pro max dummy notch

iPhone 13 Pro Max Dummy Model Depicts Smaller Notch

Tuesday May 4, 2021 1:08 pm PDT by
Apple's iPhone 13 models are expected to feature a slimmed down notch, marking the first major change to the TrueDepth camera system since it was introduced in the 2017 iPhone X. We're still months away from the launch of the iPhone 13, but Lewis Hilsenteger of Unbox Therapy managed to get an iPhone 13 Pro Max dummy model that represents what we can expect from the new 2021 device. Dummy...
iPad Pro July Shipping

12.9-Inch iPad Pro Now Delivers as Late as Mid-July

Wednesday May 5, 2021 7:10 am PDT by
While the new 12.9-inch iPad Pro is set to launch in the second half of May, orders placed today are estimated for delivery as late as mid-July on Apple's online store in the United States — some two months later. The new 11-inch iPad Pro is faring better so far, with some configurations available for delivery in the last week of May. The new 12.9-inch iPad Pro features a Liquid Retina XDR ...