Warner will provide its catalog to Apple for the iTunes Store and Apple Music. Notably, Apple will pay the label a smaller percentage of sales from Apple Music subscribers than it did under its original agreement.
Apple pushed for a rate cut in this new round of talks after Spotify, the world’s largest paid music service, secured a rate reduction earlier this year. Apple has been paying labels 58 percent of sales, a higher rate than Spotify pays. Apple also traditionally granted publishers a higher rate than its Swedish rival. Apple is now considering giving labels a cut of 55 percent, which would decrease if subscriber numbers met targets.
Apple is also said to be near a deal with Sony Music Agreement; however, a deal between the company and the bigger Universal Music is further off.
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