Report: Apple And Warner Music Sign A Deal

Deal

BLOOMBERG is reporting that APPLE, "has secured a deal for songs from WARNER MUSIC GROUP, the technology giant’s first agreement with a major label since introducing its on-demand music service two years ago, according to people familiar with the matter." 

Some big names are included in the deal, including ED SHEERAN, THE RED HOT CHILI PEPPERS and BRUNO MARS that will be available via iTUNES, the online store and streaming service APPLE MUSIC. The report notes, "APPLE plans to pay record labels a smaller percentage of sales from APPLE MUSIC subscribers than it did under its first deal for the streaming service, the people said, asking not to be identified discussing private information."

On-demand streaming has grown, and is now a dominant source of income for the music business in the U.S. BLOOMBERG adds, "Music has now taken on larger importance at APPLE. The concept of paying for access to a trove of songs and curated lists on demand has since revived a music industry that was in decline for nearly two decades. Global music sales grew 5.9% to $15.7 billion in 2016, according to THE INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY. That number will climb to $41 billion by 2030, GOLDMAN SACHS projected in a recent report. The streaming service contributes to APPLE’s services revenue, which the company aims to double to about $50 billion by 2020; and as users add more songs to their library, it serves to dissuade them from trading in their iPHONE or iPAD for a competing ANDROID-operated device."

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