Apple Music Payouts to Top 70 Percent

| News

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 Beats to pay out more than industry standardApple 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.

Popular TMO Stories

Comments

Jamie

Wow, that’s terrific (though bear in mind, much of the time, the ‘owners’ of the music are the labels, not the artists)! One of the dirty little secrets of the streaming business is that the majority of their users elect for their ‘free’ options, and their actual payout to artists is a pittance (often as little as 3%) - something to keep in mind when user numbers are bandied about. The way Apple Music is structured is great, let’s hope it helps to revitalize an industry absolutely massacred by youtube and its ilk.

Scott B in DC

Yea… 70-percent to the record companies then 5-percent of that to the artists—or 3.5-percent of the total. The record companies will still make money while the artists will continue to be the losers!

Log in to comment (TMO, Twitter or Facebook) or Register for a TMO account