“In the letter, Apple says it pays 52% of subscription revenue, or 52 cents of every dollar, to record labels. Spotify, which generates revenue both from subscriptions and its free ad-supported tier, says it pays ⅔ of every dollar of revenue to rights holders, with 75% to 80% of that going to labels, which translates to 50 to 53 cents on the dollar, depending on agreements between the service and different labels.”
However, nuances were lost in some of the wording: The first sentence of the WSJ article reads: “Apple Music told artists it pays a penny per stream” — which does not specify
who it pays a penny per stream — and while the main headline on the article reads, “Apple Music Reveals How Much It Pays When You Stream a Song,” a secondary headline reads, “Apple Music pays artists twice as much as Spotify per stream.”
It is not hard to see how the inaccuracies, which were not stated but may have been inferred from the letter and the article, could lead some artists to think that they’ll be getting a penny from Apple every time their music is streamed, or even that the company has
increased its rates to pay artists a penny per stream, even though the letter specifically states that “royalties from streaming services are calculated on a stream share basis” (i.e. a song’s percentage of the service’s total number of streams, which means Apple Music does not pay royalties on a per stream basis). Ultimately, the variables make apples-to-apples comparisons (sorry) nearly impossible, but multiple sources say the two companies’ rates are actually much closer than Friday’s headlines would imply.