Apple Music is the new streaming service created by the Apple company for users all over the world and there have been numerous speculations on its side, mainly regarding the amounts of money paid by the company to its partners for the service.
Many analysts stated that Apple would have imposed unreasonable conditions for the partners who would supply the music dedicated to Apple Music, but information that appeared during this day denies the rumors published in the past months.
The vice president of iTunes, Robert Kondrk, confirmed for an American publication that Apple will pay its partners 71.5% of the proceeds from Apple Music subscriptions sold to iDevice owners in the US.
Practically, Apple has given up the well-known percentage of 30% charged for sales receipts from the iTunes Store, and outside the US this amount amounts to no less than 73%, unusually high for the American company.
Apple won't pay music owners anything for the songs that are streamed during Apple Music's three-month trial period, a bone of contention with music labels during negotiations for the new service. But Kondrk says Apple's payouts are a few percentage points higher than the industry standard, in part to account for the lengthy trial period; most paid subscription services offer a free one-month trial.
The good part for Apple is that during the three months in which it will offer Apple Music for free to users, it will pay absolutely nothing to record companies in the US and outside the US, so in the end it will not lose anything in this promotion .
Competitors Apple Music pay similar percentages of the proceeds to the partners who provide the music for their own streaming services, so Apple is not favored from this point of view by the record companies.
For Apple Music partners, the deal would be better because Apple only offers three months of free listening for users, but instead broadcasts music for free through Beats 1 worldwide, the same being true for iTunes Radio.
Having said that, although Apple Music is being investigated by the American authorities who believes that Apple was favored by the negotiations, the reality could prove the opposite.
