Record labels object to Apple's proposed low royalty rate for streaming service

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Gabe505

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Apr 24, 2002
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Apple has opened talks with record labels about getting rights for a music-streaming service — but has gotten plenty of push back because its offer is seen as way too cheap.

 

Apple made an initial offer to the label of about 6 cents per 100 songs streamed, sources said. That’s about half of the 12 cents per 100 songs paid by Pandora, the leading online radio service that Apple is taking aim at, sources said. “Apple wants a rate that is lower than Pandora’s,” said one high-level executive.

 

While the labels would admit Apple’s music service could tap a whole new revenue...

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