Report: Apple renegotiating streaming music rates


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A report from Bloomberg states that Apple is currently negotiating better rates for Apple Music. Apple's current agreement reportedly expires at the end of the month. Negotiations are also reported going well so a stalemate is not expected. Apple appears to be looking to improve its rates similarly to how Spotify recently negotiated better share of revenues.

Bloomberg:

Under Apple's current deal, record labels at first received about 58 percent of revenue from Apple Music subscribers, a higher cut than from other major streaming services including Spotify, the largest paid music-streaming service in the world. Spotify reduced its rate to 52 percent from 55 percent in recent negotiations with labels, tied to certain guarantees on subscriber growth. The labels are open to a reduction in Apple's rate -- provided it's also able to expand subscriber rolls and meet other requirements, the people said.