Apple agreed to with Warner Music lower prices on music
07.09.2017 0 Comments
According to Bloomberg, Apple has a deal with Warner Music Group lower prices on content to Apple Music.
Now Apple will remit to the copyright holder of 55% of the profits from your music is in Apple Music. Previously, the company from Cupertino deducted under the contract 58% profit.
An agreement to lower prices for music for Apple was approved by the leadership of Warner Music after signing a similar agreement with Spotify. The difference is that Spotify, as the market leader, will be able to list Warner Music 52% of the profits, but only after reaching a specified number of users. The exact number of subscribers, Spotify is required to grant rebates, is not called.
As Bloomberg says, the music labels are going to meet the companies buying rights to distribute the music, because they still get huge profit. According to analysts Goldman Sachs, the income of rights holders from the music sales in 2016 increased by 5.9% and amounted to 15.7 billion dollars. Experts estimate that by 2030 this will rise to 41 billion dollars.
Lower prices for content Warner Music is a significant achievement for Apple. However, Bloomberg notes that Apple has yet to negotiate with other big players in the market — Sony Music Entertainment and Universal Music Group.