Apple reportedly asking music labels to take smaller revenue cut from Apple Music

Apple is supposedly renegotiating its licensing deals for Apple Music and iTunes with major music labels. Apple is hoping the labels are up for reducing revenue shares from streaming to bring them closer to the rate that Spotify pays labels. The deals with the record labels are said to expire at the end of the month but there’s a likelihood it will be extended if the parties can’t agree on new terms—at least according to the sources of Bloomberg who asked not to be identified since they’re sharing private information.

Streaming has been seen to be a source of hope for the music industry after a decade of decline in this digital age. With the help of the likes of Apple Music and Spotify, the industry grew by 5.9 percent last year worldwide. Under Apple’s existing deal, labels get around 58 percent of revenue from Apple Music subscribers, which is considered a higher cut than other services. But labels are supposedly amenable to the cut, if Apple meets other requirements. Apple overpaid labels to placate those concerned that the streaming service will cannibalize iTunes, which as shown hasn’t quite happened. But labels are still asking for precautions. Apple won’t comment about the report.