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04/29/2024 06:01:14 am

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Apple Music Labels, Still In Talks For Streaming Rights; Sony And Others Want A Larger Profit Shares; WWDC Postponed?

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(Photo : Reuters) Apple is still said to be in negotiations with major music companies about streaming license, with revenue split as the main issue.

Apple is still said to be in negotiations with major music companies about streaming license, with revenue split as the main issue.

It is reported by MacRumors that the music labels are asking to get a bigger share of profit than what they are getting under their present agreements with Spotify Ltd., a competitor in streaming services. Both negotiating sides want to close a deal before Apple's June 8 annual event in San Francisco, dedicated to more than 5,000 developers.

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According to the report of the Phone Arena, music labels are asking for 60 percent profit share, which is 5 percent more of what they get from soon to be Apple's competitor, Spotify.

Based on the report of Phone Arena, Apple is in talks with Sony, Warner and Universal as the company will debut a new music app that can be used in both iOS and Android.  The new app will provide behind the scenes videos and artist free page which they can use to post free video and music.

It is said that Apple has supposedly been encouraging music labels to stop providing license to Spotify's freemium tiers. These business efforts have given Apple criticisms from government groups like U.S. Department of Justice and European Commission, as the two organizations are said to be scrutinizing Apple's deals.

Streaming is anticipated to eventually surpass the decline in sales of downloaded music. The secret is getting more users to subscribe to a paid tier service. Phone Arena already reported how the lion's share of Spotify users utilizes the ad-supported free services. The holds are also true to most of Pandora's 79.2 active users per month. At the same time, Apple is said to be getting ready for a three month free trial service, with  limited quantity of free songs. Spotify is also said to be contemplating about removing its free tier service and providing a three month free trial instead.

If Apple won't be able to close deals with the music labels soon, the launch of the streaming services may be set on a later date, or they could initially offer limited access until a deal is closed with all three music firms, said reports. WWDC event might also not push trough on June 8, if this will be the case.

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