Apple Music revenue sharing agreements with music labels revealed
For a minute there we didn’t think Apple Music would go official at WWDC 2015. Many rumors pointed to some rough negotiations between Cupertino and record labels, and in some cases lobbying to destroy the freemium model all together. The fact that the deal went through has left many of us wondering what Apple ended up negotiating, and today we learn about it.
Robert Kondrk, Apple’s VP of iTunes has just come on record to confirm that Apple will be sharing 71.5% of the revenue made from Apple Music. Now, notice that since the word revenue is mentioned, those three months of the trial are not something Apple will have to pay for. If you’re wondering how record labels accepted such a long trial period, Kondrk confirms that this is due to the fact that Apple is paying record labels a few percentage points higher than the industry standard. Competitors like Spotify only offer users a free month for a trial period, but it seems that the ad-based freemium model is not as good a money maker as Apple’s strategy will be.
Apple Music will launch on June 30th, and we’ll report back on how good the service is once we take it for a test drive.