Apple is asking music labels to take a smaller cut of revenue from streaming
Apple is asking music labels for a reduction in the revenue rate it pays out from its music streaming service, according to sources close to the situation. Apple is renegotiating its licensing deals for Apple Music and iTunes with the three major music labels, which expire at the end of the month. The negotiations were first reported by Bloomberg.
According to sources, the negotiations with Apple are not as contentious as past and ongoing negotiations with Spotify have been. While the deal is more complex due to the inclusion of iTunes, the rapid growth of Apple Music and the slowed decline of digital downloads on iTunes has pleased both sides.
While Apple is chasing a discount, its new deal likely won’t match Spotify’s as the two...