Apple has reportedly opened talks with record labels about an upcoming music streaming service, but they’re not going well. According to the NY Post, Apple is going at companies with laughable lowball offers, proposing only 6 cents per 100 song streams. To compare, Pandora offers labels 12 cents per 100 songs.
The thing is, though, is that labels might give in because of Apple’s stature with iTunes. Some unknown high-ranking executives told the post Apple’s unannounced service could tap an entirely new revenue stream, which is an enticing prospect, particularly because of how enormous Apple’s music emporium is.
Other services like Spotify pays as high as 35 cents per 100 songs streamed, reports claim, while traditional radio pays 22 cents. Labels have reportedly counter-offered Apple at a rate of at least 21 cents per 100 songs. If a service does roll out, it’ll be part of Match, the Post said, and be ad-based, which we’ve heard before.
A recent report suggested Apple met up with Beats to discuss Project Daisy, which Beats plans on launching later this year. Still no official word from Apple whether an actual music streaming service is inbound.