Apple Seeking To Renegotiate Rate Paid to Record Labels

Apple is reportedly renegotiating the share of revenue record labels receive from its streaming Apple Music and iTunes service to be closer to what labels receive from Spotify. According to Bloomberg, under Apple’s current deal, record labels at first received about 58% of revenue from Apple Music subscribers, a higher cut than from other major streaming services including Spotify. Spotify reduced its rate to 52% from 55% in recent negotiations with labels, tied to certain guarantees on subscriber growth.

Although online sales of music have plummeted over the past few years, they still account for 24% of sales in the U.S., according to the Recording Industry Association of America.

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