Apple Reportedly Offering Half of Pandora's Royalty Rate for Streaming Music Service

[rfahey]

Originally Posted by mono1980

Pony up, Apple! Stop being so cheap!

Any money that Apple pays, or any firm for that matter, pays the record labels is going to be directly impacted on the user base. You see it with pandora now. Their fees have gone up so we've been subjected to more commercials and more whiney rants about how they pay the most of any other company for their streaming needs (which apparently isn't true if they're only paying 12cents vs iHeart's 22). And a Pandora One subscription doesn't do anything except remove the ad banners. I canceled my Pandora One subscription because I was still having my music interrupted by commercials.

[samcraig]

Originally Posted by Popeye206

Honestly, I don't care what Apple pays as long as the service is good and offers variety at a good value to us... the consumer.

Bring it on and more!

Not an artist I see. Got it.

[peterdevries]

Originally Posted by Johns12

Wow, so many people trash Walmart for try to get the lowest price for their products, yet it seems to be ok for Apple to try to undercut the market, by a large amount. Most artist are not in the financial league of Justin Bieber or Lady Gaga. This race to the bottom for compensation is not good for most artist, imo.

What you and many here forget to factor into the equation, is the increase in traffic that those artists potentially could see. A well integrated solution would create a lot of new users. It might very well be that the lower price leads to higher revenue for the artists.

In addition, the 6 cents is just an indication of bargaining power. Apple has hundreds of millions of devices in the hands of users that -with a spotify or pandora like service that is installed BY DEFAULT and available to all users- creates a market that is unmatched by any other radio service.

[Krazy Bill]

Originally Posted by iGrip

So much for all the noobs who claim that Apple is only interested in profits and doesn't care about the artists.
/s

So much for the naive that think Apple is only interested in losing money and giving it away.

[cambox]

Originally Posted by OldSchoolMacGuy

Apple has a much larger audience than Pandora so they can get away with offering less as the userbase will be much larger. Makes sense.

Eh? Apple has no audience what so ever as they dont have a streaming radio service! Lets hope they dont at that rate!

[mariocapo]

Originally Posted by jav6454

C'mon MR Bot?! Put a pic of Adele, or someone notorious for being good not some wanna be. Change the article picture please.

I'm not sure that word means what you think it does.

[Popeye206]

Originally Posted by Johns12

Wow, so many people trash Walmart for try to get the lowest price for their products, yet it seems to be ok for Apple to try to undercut the market, by a large amount. Most artist are not in the financial league of Justin Bieber or Lady Gaga. This race to the bottom for compensation is not good for most artist, imo.

Apple being smart and negotiating low costs for content is not the same as WalMart who demands all vendors allow their products to be sold up to 14% (I think that's the number) lower than other places. This often has caused companies to come out with Walmart specific products in order to meet these demands. Just check out the Levis at Walmart and the Levis anywhere else.... you can see the difference.

Anyway.... the music industry in general needs to get creative on new revenue steams... Apple may be asking for less, but many consumers are wanting to pay nothing. Nothing = nothing in the long run.

[nuckinfutz]

Who gives a sh** about the artist? They knew what they were signing when they put their name on the contract.

6 cents is a fair deal. No on else can deliver a streaming service that becomes the defacto standard like Apple can. They should go no higher than 8 cents.

The music industry is ran by a bunch of morons that know how to snatch defeat from the jaws of victory with alarming regularity.

[kimble3]

I think the big game changer in an Apple streaming service could be the fact that royalties are paid straight to the owner of the iTunes content that is being streamed. That way if you are an indie or unsigned band you have a simple way to get additional revenue for your music without having some label or aggregator taking a cut. Right now the streaming services are great for users but terrible for artists.

[maslan123]

Originally Posted by OldSchoolMacGuy

Apple has a much larger audience than Pandora so they can get away with offering less as the userbase will be much larger. Makes sense.

Ok - had to respond to this.. What??? Pandora is on every device (Apple or Android or Blackberry or Windows. PC or iMac, etc.....) however the Apple version would only be on Apple products?? Who would have the larger base??

[Jessica Lares]

Originally Posted by basesloaded190

If Pandora isn't making any money, I wonder how Spotify is able to.

Probably different factors - Pandora is like a continuous playlist. So more people turn it on and leave it and do a lot of skipping. Probably have to pay for those accidental 60 seconds of a song too.

With Spotify, you have to do a lot of digging and hunting, and it takes more time to really set up. Same thing with Rdio. So there's more silent times between usage. They charge more too.

[The Bulge]

Originally Posted by Popeye206

Apple being smart and negotiating low costs for content is not the same as WalMart who demands all vendors allow their products to be sold up to 14% (I think that's the number) lower than other places. This often has caused companies to come out with Walmart specific products in order to meet these demands. Just check out the Levis at Walmart and the Levis anywhere else.... you can see the difference.

Anyway.... the music industry in general needs to get creative on new revenue steams... Apple may be asking for less, but many consumers are wanting to pay nothing. Nothing = nothing in the long run.

Indeed. If someone is paying 22 cents then it's their own fault they lacked the leverage and negotiated such pricing.

[djejnyc]

Actually this is the same lowest rate in the business that Spotify pays. Not sure who told them Spotify pay the most. So many articles about this.

http://www.spinner.com/2013/01/29/da...ess-interview/

Too bad, really, I thought Apple would take care of the artists better.

[peterdevries]

Originally Posted by maslan123

Ok - had to respond to this.. What??? Pandora is on every device (Apple or Android or Blackberry or Windows. PC or iMac, etc.....) however the Apple version would only be on Apple products?? Who would have the larger base??

Pandora is not on every device. It CAN be installed and you can bet that the vast majority of all users do not even know what Pandora is. Same goes for Spotify.

In addition Apple has a global iTunes store, which is still expanding rapidly and both Pandora and Spotify are restricted to specific regions. Also both Pandora and Spotify have a smaller music database than Apple.

[Sedrick]

Please, enough with that ridiculous fool Bieber.

[samcraig]

Originally Posted by Jessica Lares

Probably different factors - Pandora is like a continuous playlist. So more people turn it on and leave it and do a lot of skipping. Probably have to pay for those accidental 60 seconds of a song too.

With Spotify, you have to do a lot of digging and hunting, and it takes more time to really set up. Same thing with Rdio. So there's more silent times between usage. They charge more too.

Indeed. Pandora (and other streaming services) have to pay a royalty whether someone listens to the song in full - or just a second. So "skipping" often is a sure fire way to run up their tab.

[Popeye206]

Originally Posted by samcraig

Not an artist I see. Got it.

And you are?????

If you are you realize that musical artists don't get royalties from broadcast radio... writers and publishers do, but the artist typically makes their money from direct music sales and other licensing deals. New to this is Satellite radio and internet streaming... so this is a new revenue stream for the artist, writers and publishers.

This is what I understand to be the current situation... but I'm not a artist either so I don't know what's in the typical recording contract.

[Consultant]

Originally Posted by djejnyc

Actually this is the same lowest rate in the business that Spotify pays. Not sure who told them Spotify pay the most. So many articles about this.

http://www.spinner.com/2013/01/29/da...ess-interview/

Too bad, really, I thought Apple would take care of the artists better.

Some artists say iTunes match pays more than streaming services.

[samcraig]

Originally Posted by Popeye206

And you are?????

If you are you realize that musical artists don't get royalties from broadcast radio... writers and publishers do, but the artist typically makes their money from direct music sales and other licensing deals. New to this is Satellite radio and internet streaming... so this is a new revenue stream for the artist, writers and publishers.

This is what I understand to be the current situation... but I'm not a artist either so I don't know what's in the typical recording contract.

I never said I was. But I also don't post things like "Honestly, I don't care what Apple pays as long as the service is good and offers variety at a good value to us... the consumer. "

I guess I care enough about the arts to not just care about what the service is - but that it's fair. Or at least not "raping" artist. Not saying this model is/does. But I don't just care about what it does for me.

p.s. I am not a recording artist. Nor a professional artist. But I am many friends who are. So it's an important issue to me.

[fel10]

What is Ellen Degenerous doing in the picture?

[SpiderDude]

Yeah, Apple really is all about professional consumers nowadays...
Oh my, if when they first launched the iPod, Steve could guess Apple would be like this 8 years later, I wonder if he wouldn't have rather let it go down the crapper...

[The Bulge]

Originally Posted by samcraig

Not an artist I see. Got it.

Just because you make some noises in the mamas basement doesn't make you entitled to something. Just like with anything you have to earn it and of course you are free to go solo without some record company backing and all the raping that comes with it. There are bands like that.

[mcfrazieriv]

WHAT IS UP WITH THAT DUDES PANTS?

In every photo it looks like he's wearing a massive full nappy.

[tongxinshe]

Originally Posted by Johns12

Wow, so many people trash Walmart for try to get the lowest price for their products, yet it seems to be ok for Apple to try to undercut the market, by a large amount. Most artist are not in the financial league of Justin Bieber or Lady Gaga. This race to the bottom for compensation is not good for most artist, imo.

No matter how much the label companies get from Apple (or Pandora), the artists get the same amount from the label companies. So, please don’t shuffle your “artists” arguments here.

[nazaar]

ewwww Bieber... turned off by the image so I didn't read the article.