Apple may seek to pay labels less as Apple Music subscriptions rise

“Apple Inc. is seeking to reduce record labels’ share of revenue from streaming, part of negotiations to revise the iPhone maker’s overall relationship with the music industry, according to people familiar with the matter,” Lucas Shaw and Alex Webb report for Bloomberg.

“The talks cover Apple’s agreements for Apple Music, the two-year-old streaming service offering millions of songs on demand, and iTunes, the store where people can buy individual songs or albums,” Shaw and Webb report. “The record labels’ deals with Apple expire at the end of June, though they are likely to be extended if the parties can’t agree on new terms by then, said the people, who asked not to be identified discussing private information.”

“Under Apple’s current deal, record labels at first received about 58 percent of revenue from Apple Music subscribers, a higher cut than from other major streaming services including Spotify,” Shaw and Webb report. “Spotify reduced its rate to 52 percent from 55 percent in recent negotiations with labels, tied to certain guarantees on subscriber growth. The labels are open to a reduction in Apple’s rate — provided it’s also able to expand subscriber rolls and meet other requirements, the people said.”

Read more in the full article here.

MacDailyNews Take: Apple should get a better rate than Spotify simply because Apple product users offer the music industry entry into a significantly richer demographic who are easily more likely to go on to buy music, merch, and concert tickets.

Apple Music passes Pandora and Spotify in mobile usage – March 29, 2017
Apple Music surpasses 20 million paid members 17 months after launch – December 6, 2016
Higher income U.S. states use Apple iPhones; lower income states use Samsung Galaxy phones – September 27, 2016
iOS users are worth 10X more than those who settle for Android – July 27, 2016
Apple’s App Store revenue nearly double that of Google’s Android – April 20, 2016
Poor man’s iPhone: Android on the decline – February 26, 2015
Study: iPhone users are smarter and richer than those who settle for Android phones – January 22, 2015
Why Android users can’t have the nicest things – January 5, 2015
iPhone users earn significantly more than those who settle for Android phones – October 8, 2014
Yet more proof that Android is for poor people – June 27, 2014
More proof that Android is for poor people – May 13, 2014
Android users poorer, shorter, unhealthier, less educated, far less charitable than Apple iPhone users – November 13, 2013
IDC data shows two thirds of Android’s 81% smartphone share are cheap junk phones – November 13, 2013
CIRP: Apple iPhone users are younger, richer, and better educated than those who settle for Samsung knockoff phones – August 19, 2013
iPhone users smarter, richer than Android phone users – August 16, 2011
Study: Apple iPhone users richer, younger, more productive than other so-called ‘smartphone’ users – June 12, 2009


  1. Well, the music industry is saved by the tech industry.
    They can now lean back, put their feet on the desk and watch the numbers get in. Like the good old days of vinyl and CD.

    What a spoiled industry.

    I wonder if artists really get to see the money they really earn?
    Cause you know, this data could all be sorted out… But that is another debate…

    Lower the margin because it will be the tech industry who will develop other ways to consume music and maintain it…

    How about 50/50. Because you know Youtuber steal music and Gaagle doesn’t do enough about it. In fact, the music industry should bring Gaagle to court with all that money… But that is another debate…

    Gesh… What a debate!

  2. As a full time musician, mdn’s response is complete bullshit. Less money is less money. You start talking that exposure shit to anyone in this business and like me, they will call you out on it.

    Know what your talking about before you start talking. It’s not personal man, this is a sensitive subject.

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