Apple reportedly seeks lower pay rate to record labels for its Music service

Apple Music on iPhone

Apple is reportedly asking music labels to take a reduction in the rate of pay they receive from its music streaming service. According to Bloomberg, the Cupertino-based tech giant is in the midst of renegotiations over its licensing deals for Apple Music and iTunes with major music labels, which are set to expire at the end of the month.

The talks pertain to Apple Music, which is now two-years-old streaming and offers millions of songs on demand, and iTunes, which lets people purchase music, TV shows, movies and other media.

Bloomberg notes that the negotiations would bring Apple closer to — but not meet — the rate Spotify pays labels. Spotify previously negotiated with Universal Music Group, and is expected to make similar deals with

Although Apple is apparently looking for a discount, its services aren’t the same as Spotify’s, and deals will differ accordingly. For example, Apple Music has no free tier and Spotify has no digital store.

It’s worth noting that even if negotiations continue into July, music steaming should continue to roll on, as extensions to the services are typically agreed upon.

In other Apple Music news, a $99-per-year subscription tier for the service is now available in Canada.

Via: The Verge 


  • Bradly Shankar

    Graduate of Toronto Metropolitan University's journalism program. While I'm always fascinated by technology as a whole, I'm most interested in the art of video games. In particular, I'm passionate about covering Canada's world-class gaming industry and the many talented developers we have here.