Apple still negotiating terms with record labels for music streaming service

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Apple is reportedly still negotiating terms with record labels for its rumored music-streaming service, just days before its annual Worldwide Developers Conference kicks off with a keynote next Monday, Bloomberg said today.

People familiar with the negotiations told the news organization that the labels are pushing to get a larger chunk of revenue than they receive under their current deals with Spotify.

“Both sides want to complete a deal before Apple’s June 8 annual event in San Francisco for more than 5,000 developers,” claims the article.

Labels are apparently hoping to take about 60 percent of a monthly rate for the rumored Apple Music service versus the 55 percent rate they take on Spotify’s monthly $9.99 fee.

Under the Spotify deal, publishers take an additional 15 percent in related fees. The subscription service, along with music downloads and a revamped version of iTunes radio, should be baked into Apple’s revamped Music app.

Apple should offer exclusive behind the scenes video and has reportedly hired executives to help shoot and produce video from recording sessions “with willing musicians.”

The overhauled Music app will feature promotional artist pages that will host videos, songs “and other things” for free. Apple will “compensate the artists and labels for songs it gives away, as it has done with iTunes’ ‘Free Song of the Week’ promotion, which Apple pulled in January 2015 without an explanation.

Separately, the article mentions that Apple has been negotiating terms for its rumored online-only television service with broadcasters ABC, CBS and Fox.

The rumor-mill thinks Apple’s bundle of channels will include about 25 channels at a lower monthly fee compared to existing cable deals. CBS CEO said last week that his network would “probably” sign a deal with Apple.

“Those negotiations are moving slowly and Apple TV announcements aren’t expected at next week’s conference,” Bloomberg has learned.

Earlier this week, Showtime said its new Internet streaming service would debut on Apple devices in July for a monthly fee of $10.99.

Source: Bloomberg