Report: Apple in last minute negotiations with record labels

Report: Apple in last minute negotiations with record labels
With Apple expected to unveil its streaming music service at WWDC next week, negotiations between Apple and the record labels are coming down to the wire. According to a report published by Bloomberg, the labels are asking for a larger slice of Apple's streaming revenues than the percentage of the top line they receive from Spotify.

The labels currently receive 55% of the $9.99 monthly fee that Spotify charges for its paid tier of service. According to the latest figures, 15 million of Spotify's 60 million listeners are paid members to the service. According to those familiar with the talks, the record companies want 60% of the revenue that Apple garners from its new service. Apple will reportedly ask subscribers to pay a $10 monthly subscription fee for what is rumored to be called Apple Music.

The companies that Apple is negotiating with include Warner, Universal and Sony. In addition to the new streaming service, Apple will launch a new music app that will work with iOS and Android. The app will offer behind the scenes videos and will give artists a free page that they can use to post free music and video.

With the decline in sales of downloaded music, streaming is expected to eventually surpass it. The key is getting more people to subscribe to a paid tier of service. We already mentioned how the lion's share of Spotify members use the ad-supported free level of service. The same holds true for the majority of Pandora's 79.2 monthly active listeners. While Apple is rumored to be prepping a three month free trial for its service, as well as a limited number of free songs, Spotify is said to be thinking about doing away with its free tier of service and offering a three month free trial instead.

If Apple can not come to terms with the labels in time, it might have to delay the launch of the service, or offer limited capabilities until a deal is reached with all three music providers. WWDC kicks off on June 8th in San Francisco.

source: Bloomberg

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26 Comments

1. gaming64 unregistered

Anyone excited for WWDC???

2. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

Hell yeah...

4. androiphone20

Posts: 1654; Member since: Jul 10, 2013

HAIR FORCE ONE!! aka the Craig Federighi show

7. AnTuTu

Posts: 1602; Member since: Oct 14, 2012

Hell No........

8. CAMBODIANPATRIOT

Posts: 226; Member since: May 10, 2015

Then getfo here u zombie!

10. AnTuTu

Posts: 1602; Member since: Oct 14, 2012

hahaha who the F are you to tell me where to go? If you don't like what you read on the Internet then go back to your cave.

12. vergil9

Posts: 517; Member since: Apr 06, 2015

LOL the troll doesn't like to be trolled. You reap what you sow.

13. RebelwithoutaClue unregistered

GTFO is get the f#ck out What does getfo mean?

23. BobbyDigital

Posts: 2124; Member since: May 29, 2014

Don't like people trolling CRAppl3 the way you troll Android and BlackBerry? That is LAUGHABLE. You should take your own advice and GTFOH on Android and BlackBerry articles.

24. marorun

Posts: 5029; Member since: Mar 30, 2015

So others need to not post if they disagree but you troll everyone who disagree with you? You are really hypocrit!

26. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

CAMBODIANPATRIOT, how do you like your own medicine? Pretty sweet i guess. Well at least for me. I do hope Apple have something good to announce. Might buy an iPad mini 4 if they update CPU/GPU spec with at least 2 GB RAM.

22. BobbyDigital

Posts: 2124; Member since: May 29, 2014

That would be a resounding and hearty NO.

3. kryme

Posts: 468; Member since: Oct 24, 2013

What are we gonna see at wwdc... Ios9??

6. AnTuTu

Posts: 1602; Member since: Oct 14, 2012

Nope but more bugs like "Effective Power"

9. CAMBODIANPATRIOT

Posts: 226; Member since: May 10, 2015

and u r the first to get them

11. AnTuTu

Posts: 1602; Member since: Oct 14, 2012

I will be if I have an iDevice. Lucky me I don't own anything except an iPad mini.

5. frydaexiii

Posts: 1476; Member since: Dec 01, 2011

I don't get why anyone would use Apple's service. Spotify has free streaming (unless they shoot themselves in the foot and do away with it), and if Apple is doing a similar thing as Spotify by providing offline listening for subscriptions as a selling point, then why bother with Apple Music when you can just buy and own the song (or in Apple's case "rent" indefinitely) from iTunes.

14. AlikMalix unregistered

Why do you say "rent" indefinitely... Consider me an Apple fan, but I was able to take purchased music from Apple and put it on CD's and flash drive, put it on Android device, and play it with WinAMP or Windows Media. Apple can literally "poof" disappear of face of the Earth and my purchased music will still play on anything outthere... I even tried converting to MP3 (which is a larger file with same or less quality) and no issues using a free converter on Downloads.com So unless I haven't tried something, you're lying!

16. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Well I don't know if he is referencing what I think he is, but all digital music is licensed to you not owned by you. I believe that is the current law in the US so you should be careful. Second, if Spotify does kill their free service, then we know who did It, and that's apple. They have been trying to force labels to kill Spotify and it's free service for a while now to restrict consumer choice and they might succeed. If they do, F*** Apple and F*** their supporters.

17. AlikMalix unregistered

Yeah, I saw that article... pretty dick move on Apple's part, but the idea is fed by labels, apple just first to the punch to win them over to Apple's side. But as far as licensing, your point applies to Google Play, Amazon, and w/e else not just iTunes... He was referencing to Apple ONLY...

18. AlikMalix unregistered

Oh, did some research: Licensing music means you're allowed to listen to purchased digital music (or legally gained for free thru promotion or something), share with friends or private party... BUT, you'll be required a different licence (another price/rate) if you wish to broadcast at a concert, radio, or use it in an infomercial, or use it as background music/noise in a restaurant or launge area... But there's no more restriction of music purchased in iTunes than the music purchased on Amazon, Google Play, etc... It's even better because some of these distributors like iTunes will keep purchase history on file, so that if you loose it/ delete it/ or file gets damaged - you can download again, and again. I prefer iTunes specifically because they have a "Match" service, where all the broken music (even my native language ones) that I upload to iCloud get replaced with better quality and full track (in case your original is missing ending, beginning, or middle sections) AND it doesnt go against your iCloud storage capacity...

25. marorun

Posts: 5029; Member since: Mar 30, 2015

and F*** streaming and lets get back to mp3 dowload hehe..

19. frydaexiii

Posts: 1476; Member since: Dec 01, 2011

20. AlikMalix unregistered

Did you read the whole thing? Does it apply today as the day this article is written 2012? Is the media in question acquired before the law changed (if it has already). This is a legal standpoint between Apple and Label and based on whats written it applies to Google Music as well... It specifically targets iTunes because most of population references to iTunes not Google Music or Amazon or etc. From the same article: "There will soon be a lot of upset customers, not just for Apple, but also for Amazon and all the other companies selling digital content, such as books, which operate these licence agreements. We have no rights over the digital goods we buy. The laws were written to prevent piracy, but treat everyone as a thief." If Apple (or others) didn't do that, they would get sued by labels or whoever is rightful owner. Once again though, he legally cannot transfer ownership to his family, but come on, we both know it's not going to disapear from his iPod and harddrives when he dies. You outed Apple knowing that this applies to Google just as much, why?

15. AlikMalix unregistered

I will be extremely happy if they call it Apple Music instead of Beats Music (dont care much for 3rd party developer's names) I like it all to sound like its part of one bundle - OCD thing, I think.

21. gaming64 unregistered

I will be extremely happy if they retire the "i" prefix for future services but not current products. It's getting helluvalot boring. Even Apple Watch sounds better than the iWatch. I'm glad you're doing this Tim.

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