(credit: Steve Rhodes)
A catalog of music from high-profile artists including Bruno Mars, Ed Sheeran, the Red Hot Chili Peppers, and others will populate Apple Music.
According to a Bloomberg report, Apple has struck a deal with Warner Music Group to offer its songs on its music streaming service, as well as iTunes.
This is the first major label agreement for Apple Music since its inception two years ago, and Apple hopes to ink a pact with Sony Music Entertainment soon as well.
Apple still plans on negotiating with record labels to pay them lower rates for Apple Music subscribers. We first heard of these plans back in June, when the Apple Music’s first contracts were expiring. With on-demand music streaming services like Spotify and Apple Music having become the main source of sales for the record industry, labels may be willing to accept less from tech giants like Apple.
But all of this hinges on the growth of these music streaming services—record labels may not mind getting a smaller percentage of the money provided subscriber numbers keep increasing.
Until now, Apple paid record labels 58 percent of sales, which is higher than what Spotify pays.
According to the report, Apple now wants to pay labels 55 percent.
It’s possible that rate could decrease even more if Apple Music meets subscriber targets that please both Apple and record labels.
Spotify now pays labels 52 percent of sales instead of its previous rate of 55 percent.
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