Digital Spy

Search Digital Spy
2

Tech News

Apple iTunes Radio royalty terms for independent labels revealed?

By
Apple's iTunes Radio royalty payment plan for independent record labels has been revealed, according to reports.

Details of agreements sent to indie labels - as obtained by the Wall Street Journal - show that the payment process is based on two separate criteria.

Eddy Cue the Apple senior vice president of Internet Software and Services introduces the new iTunes Radio during Apple WWDC 2013

© PA Images / Eric Risberg/AP

Apple executive Eddy Cue introduces iTunes Radio


> iTunes Radio: Will it be any good for music fans?

Apple reportedly intends to pay a flat fee per play of a track in addition to a percentage cut, which is based on a share of advertising revenue scaled against a label's share of all the music played on the service.

iTunes Radio will reportedly pay out $0.0013 (£0.0008) per play of a track and 15% of a label's share of advertising revenue in its first year. The figures are due to go up to $0.0014 (£0.0009) and 19% in the second year of the service.

Exceptions to royalty payments under the agreement reportedly include songs which listeners skip before the 20-second mark, some songs that service users already own and Heat Seeker tracks which feature in special iTunes promotions.

iTunes Radio

© Apple


> Apple iTunes Radio 'to include targeted audio adverts'

Billboard additionally claims that under the agreement, Apple will not have to pay royalties during the iTunes Radio beta period, which could last up to 120 days.

Apple has not commented on the reports.

iTunes Radio will feature over 200 stations with a large catalogue of music, following deals with all the major record labels. The free service is tipped to launch in the autumn.

Watch a video introduction to Apple's new operating system iOS 7 below:


Apple Worldwide Developers Conference 2013 - photo gallery:

You May Like

Comments

Loading...