Report: iTunesRadio Offering Good Terms To Record Labels
June 27, 2013 at 4:54 AM (PT)
THE WALL STREET JOURNAL reports APPLE has sent the paperwork regarding iTUNES RADIO to independent record labels last week. "APPLE intends to pay royalties to labels based on a blend of how many times listeners hear their songs and how much advertising APPLE sells," notes THE JOURNAL.
The paper viewed a contract, and says "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."
That is a better deal than the labels currently receive from PANDORA, which pays labels 12 cents per listen on its free service.
The major labels have reportedly received a similar, but not exact offer from APPLE. APPLE is also offering music publishers "more than twice as much in royalties than PANDORA does," noted THE WSJ.