Apple Reveals How Much It's Paying Music Labels for iTunes Radio

Posted June 27, 2013 at 4:45pm by iClarified | Please help us and submit a translation by clicking here | 12407 views

Apple has circulated its royalty payment terms to independent record labels revealing how much they will pay to labels for song plays on the new iTunes Radio service, reports the WSJ.

The company will pay royalties based on a blend of how many times listeners hear their songs and how much advertising Apple sells.

During iTunes Radio’s first year, Apple will pay a label 0.13 cents each time a song is played, as well as 15% of net advertising revenue, proportionate to a given label’s share of the music played on iTunes. In the second year, that bumps up to 0.14 cents per listen, plus 19% of ad revenue.

Pandora pays labels 0.12 cents per listen on its service. Additionally, Apple is offering music publisher more than twice as much in royalties than Pandora does.

There are some other technicalities. Apple doesn't need to pay royalties for songs already in a user's iTunes library, or for songs used in special promotions. Also, Apple doesn't need to pay for songs listeners skip before 20 seconds have elapsed. However, only two songs per hour can be royalty exempt.

More details at the link below...

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Add Comment
El Compa - June 28, 2013 at 5:50am
Hey apple, who gives a rats ass? Just give us the damn music or we will download it from a torrent site. K, thx.
Jedediah Johnson - June 28, 2013 at 7:13am
It's not apples to give you retard. It's the music industries F*ck Face.
The Jesus - June 27, 2013 at 5:42pm
0.13 cents or $0.13?
rick - June 27, 2013 at 6:54pm
13/100 of a penny.
Bigsim - June 28, 2013 at 4:30am
13/100 of a dollar
FFWD - June 28, 2013 at 5:17am
It is $0.13 cents or 13/100 of a dollar. Think about it guys. Otherwise this business model wouldn't work for record labels. ie. 1,000,000 spins (song heard past 20sec mark) = $130,000
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