Laying all previous speculations to rest, Apple VP of iTunes content Robert Kondrk has said that the company will share 71.5% of Apple Music revenue with music owners in the US, and a slightly up outside US.
Apple’s music streaming service has been signalling a stiff competition to its competitors ever since it was announced. And that indeed reflects in the strategies that the Cupertino giant has been following to fight off competitors like Spotify.
The figure that Apple announced is slightly up from 70 percent figure, which is a standard rate paid by other players in the market, including Spotify. Since Apple has promised to share a considerable percentage from the revenue that it will earn through its music streaming service, it will not pay any loyalties for the 3 month trial period that it will offer to its users.
An hiked figure would eventually make a huge difference to music labels and other right owner’s income in a long stretch, thus should not bother them much for no royalties for the first three months.
Also, the payments will be primarily sent to record labels and publishers that own the rights to songs and their underlying compositions, meaning that the royalties will not necessarily line the pockets of musicians directly.
Earlier, it was speculated that Apple will pay around 58 percent of its revenue to music labels as royalties. That has been clearly dusted off and further intensifies the battle.
However, royalty rates for Beats 1 and Apple Music radio will be lower than music streaming service.
Apple Music will launch on June 30 for $9.99 per month, or $14.99 per month for a family of up to six people.