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  • Apple Paying 58% of Apple Music Revenue Fees to Record Labels


    We are now approximately two weeks away from Apple’s upcoming launch of Apple Music. It was announced by the company that there will be two plans, a $9.99/month single user rate or a $14.99/month family rate. A new report from Digital Music News has noted that 58% of all Apple subscription revenues will be going to record labels.

    The news is not surprising, as labels have to get their fair share so they could pay artists, however, we do believe that the percentage is a bit on the high side. This means that for every $9.99/month subscription, $5.80 will be paid out to record labels. Then on top of all of this, the Cupertino-based company will be paying 12% to songwriters and/or publishers, which means Apple will only get about 30% of revenue at the end of it all.

    Digital Music News previously reported that compared to other music services like Spotify and Pandora, Apple was paying the least amount to music record labels. However, it was found out that after the 70% that’s being paid out by Apple, the percentage is actually comparable to industry standards. Apple Music will be offering users a 3-month trial for free when the service first launches.

    We reported just recently that Apple is looking to sign 100 million subscribers for the Apple Music service. That is a big number, but the company never specified what time frame they’re looking at to get that many subscribers in, so it could still be doable. Will you be signing up for the streaming music service? Share with us in the comments below.

    Source: Digital Music News
    This article was originally published in forum thread: Apple Paying 58% of Apple Music Revenue Fees to Record Labels started by Akshay Masand View original post