“You don’t have to pay anything to try Apple’s new streaming music service, since the company will offer a free three-month trial when it launches at the end of June,” Peter Kafka reports for Re/code.
“But if you stick around after that, you’ll need to pay $10 a month for the on-demand, all-you-can-eat subscription service,” Kafka reports. “And Apple will end up passing along more than $7 of that to music labels, music publishers and other music owners.”
“According to Robert Kondrk, the Apple executive who negotiates music deals along with media boss Eddy Cue: In the U.S., Apple will pay music owners 71.5 percent of Apple Music’s subscription revenue,” Kafka reports. “Outside the U.S., the number will fluctuate, but will average around 73 percent, he told Re/code in an interview. Executives at labels Apple is working with confirmed the figures.”
Read more in the full article here.
MacDailyNews Take: That’s a tad bit better than Spotify, plus Apple Music doesn’t give it away forever like Spotify. Music labels and musicians will likely reward Apple over Spotify with important exclusives. As Spotify loses paying subscribers to Apple Music, it’s only going to get worse for Spotify.
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