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.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple Reportedly Offering Half of Pandora's Royalty Rate for Streaming Music Service
- Thread starter MacRumors
- Start date
- Sort by reaction score
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.
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.
So much for the naive that think Apple is only interested in losing money and giving it away.
Eh? Apple has no audience what so ever as they dont have a streaming radio service! Lets hope they dont at that rate!
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.
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.
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.
Unsigned Royalties
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.
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.
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??
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. If someone is paying 22 cents then it's their own fault they lacked the leverage and negotiated such pricing.
Spotify only pays 6 cents per 100 plays
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/david-lowery-music-business-interview/
Too bad, really, I thought Apple would take care of the artists better.
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/david-lowery-music-business-interview/
Too bad, really, I thought Apple would take care of the artists better.
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.
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.
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.
Going Biebs, heh?
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...
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...
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.
WHAT IS UP WITH THAT DUDES PANTS?
In every photo it looks like he's wearing a massive full nappy.
In every photo it looks like he's wearing a massive full nappy.
No matter how much the label companies get from Apple (or Pandora), the artists get the same amount from the label companies. So, please dont shuffle your artists arguments here.
