Apple will be passing on more than 70 percent of the subscription fees it collects for its new Apple Music streaming service. That money will go to the music owners, and outside of the U.S., they'll get even more.
Apple Music to pay out more than industry standard
Robert Kondrk is responsible for helping Eddy Cue negotiate music deals. He told Re/code that Apple will pay out 71.5 percent of subscription revenue in the U.S., and about 73 percent outside the country. Those figures come in above the 70 percent streaming music services typically pay.
Surprisingly, Apple won't pay music owners anything during the free three month trial period for new customers. Since there won't be any ads, there won't be an alternate revenue stream to fall back on.
Apple's higher payout percentages makes up for the money music labels aren't bringing in during the trial period, and may have been necessary to swing deals.
Apple Music launches later this month at US$9.99 for a single person, or $14.99 for families up to six people. That'll get you about 30 million songs without ads on your Mac, iPhone, iPad, Windows devices, and later this year, Android devices, too.