Apple is reportedly holding talks with music labels to get them to agree to a reduction in the revenue rate that it has to pay out for its music streaming service. Apple is said to be renegotiating its licensing deals for Apple Music and iTunes with the three biggest music labels that collectively own most of the music that’s out there. Apple’s deals with the labels are said to expire by the end of this month.
Reports suggest that these negotiations haven’t been as contentious as they have been in the past or how Spotify’s recent negotiations with the music labels were.
However, the deal is said to be more complex as iTunes is included as well, but both sides are said to be happy about the rapid increase in Apple Music’s popularity and the relatively slow decline of digital downloads via iTunes.
It’s unclear at this point in time exactly what the figures are and how music Apple stands to save if the labels agree to a reduced revenue rate. These details haven’t become public as yet and may never be.
Apple will be looking to close the deals by the end of this month but even if no middle ground is reached, it’s not like all music will disappear from iTunes and Apple Music. It’s common industry practice to extend previously negotiated deals for such time necessary in which a new deal is being negotiated.