Beginning June 30th, Apple's streaming music service conveniently titled Apple Music will launch. Free for all to try before the $10 monthly fee commences post 1-month trial period, the service in question stands poised to give the likes of Spotify and Pandora a legitimate run for their money. And thanks to the deals in place between Apple and music rights owners, those who own the music Apple will be serving up won't be running out of money any time soon.
A source at Apple confirms what can best be described as a fair arrangement between Apple and music rights owners. Per the deal in place, rights owners will collect a "standard" percentage of revenue generated through Apple Music.
"The fact that Apple will pay music rights owners around 70 percent of its revenue shouldn’t be a surprise to industry music observers, since that’s a fairly standard ratio," Re/Code reports. "But the issue came up last week when a copy of an Apple Music contract surfaced online, along with the suggestion that Apple was only going to pay out 58 percent of its revenue."
According to Peter Kafka, no royalties will be paid out during the 1-month trial period, but once the fees start rolling in, music industry folks will get their money.
Source:
Re/Code
