The Wall Street Journal published a new article today detailing the license he had to obtain Apple sign with independent music labels to use their music on the iTunes Radio music service. The new contract which Apple signed last week, reveals that indie publishers' profits will be slightly higher for iTunes Radio than those paid to major labels Universal, Warner Music Company and Sony Music entertainment.
Apple sa is committed to paying royalties based on how many times users listen to songs and how many ads sa Appwill manage to sell it. Apple so it works on a very similar principle to the competing Pandora service, but differs in the amount of fees. Apple should pay the label 0,13 cents per song during the first year of operation, as well as a 15% share of advertising revenue. In the course of the next year, this fee should be increased, and Apple therefore, starting in 2014, labels will be paid 0,14 cents per song and a 19% share of advertising. Access to publishers from the side Applu is better than pandora in terms of profit. The Wall Street Journal claims that ad revenue is more than double that of Pandora. In addition, Pandora pays publishers 0,12 cents for each song played.
Apple on the other hand, he wants to keep part of his profits, so he lists exceptions in his contract for which he will not pay license fees. Apple will not pay a license fee if the user already owns a certain song or part of an album. They also do not have to pay a fee even if listeners decide to skip a certain track before 20 seconds have passed from the given track. However, it is not certain whether the exception applies to songs that the user has purchased on iTunes Store or even iTunes Match users. A subscription service that Apple introduced two years ago, will allow users to listen to the iTunes Radio service without ads, among other things. The conditions for independent publishers are very similar to those he set for the big three publishers.
