Apple wants to pay less to the artists on the Apple Music and the iTunes Store
According to various sources, Apple is reportedly negotiating with record labels, american to reduce the royalties that are paid to the contents on Apple's Music and iTunes Store, the purpose of drawing closer to the amounts lower that are offered by Spotify.
The current agreements with Apple the record labels expire at the end of June, but the company from Cupertino is willing to negotiate those numbers to the downside. In the meantime, the idea is to extend the current expiration until a new agreement
Today, the record companies receive a royalty equal to 58% by the subscriptions on Apple's Music, a figure higher than most streaming competitors. Spotify, for example, has managed to reduce this rate from 55 percent to 52 percent, with the tradeoff of having to increase the number of subscribers. Apple is trying to reach a similar agreement.
For example, the labels have asked Apple to promote the iTunes Store in the markets where streaming is less widespread, such as Germany and Japan. In general, the proceeds that arise from the downloading of songs on iTunes Store have decreased also because of the spread of the services streaming, but even on this point, Apple will try to reach an agreement with royalty below in favour of the record companies.
Apple initially proposed a 58% to convince the major labels to agree to Apple's Music, in spite of the concerns for a drop in sales on iTunes. With 27 million subscribers, now Apple feels stronger, and can ask for concessions.
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