Apple has confirmed to Re/code that the company will be passing the majority of revenues from Apple Music to music labels and right holders of the songs.
According to Robert Kondrk, VP of iTunes content at Apple, Apple will be paying music right owners around 70 percent of their revenue from Apple Music. In the United States, the revenue figure is 71.5 percent, but outside of the country, it averages at around 73 percent.
However, the company is not going to pay a single dime to music right holders during the initial three months of Apple Music, during which it will be available as a free trial. This was a major point of disagreement between Apple and music labels during their negotiations period, but Apple was able to finally convince them by promising higher payouts eventually.The revenue sharing number for Beats 1 — a 24 x 7 live radio station from Apple — is significantly different from that of Apple Music though. Apple will be paying music labels and right holders a much lower fee for the radio station since users will not be able to stream songs on-demand via it. The exact figure, however, is unknown.
Apple’s revenue sharing numbers are better than Spotify — one of the chief competitors of Apple’s music streaming service.
Apple Music is all set to launch on June 30 for $9.99 per month.
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