Report: Apple Extremely Proposes Fixed Royalty Rates For Music Streaming Services

It seems Apple’s new proposal fot streaming music royalties could leave Spotify out of pocket, as the decision made in collaboration with the Copyright Royalty Board. Resulting, should pay a rate of 9.1 cents per 100 song plays. Here are the details on it in a brief manner.

Copyright regulators in the US are currently working out ways of improving the immensely complex system for calculating how much artists get paid when one of their songs is streamed on Spotify, Google Play Music, Apple Music and all other services.

Apple although seeks simpler royalty payments for streamed Music, and it’s proposal of paying out a flat rate per a song would stick it to services that indeed offer free streaming, like Spotify. The Cupertino-based Apple company really wants to simplify the more complex equations that determine just what, exactly, musicians make whenever their songs are played on streaming services.

Once it becomes successful, Apple’s proposal will eventually turn the screw on rivals like Spotify, as it will require them to pay more for services they aren’t making enough revenue.

According to Billboard, where music makers get 9.1 cents for every 100 plays (same one they get for one digital download). However, that sounds straightforward though, it means companies pay for individual streams rather than out of their revenue on as a whole.

Moverover, it’s also likely that Apple won’t have to follow the rules of its own proposal, as it has struck separate deals with music publishers to pay slightly higher rates than the norm – and extremely higher than even those Apple proposed to the United States Copyright Royalty Board.

If that’s the case, would leave services that offer free tiers – hello Spotify – paying out more money. Apple Music, obviously, doesn’t have a free option and nevertheless, you do get the option of a three-month trail if you’re a brand new customer.

While Apples’ proposal wasn’t made anything public, but The New York Times report speaks that the version it received has Apple taking for a simple 9.1 cents for every hundred plays of a streamed song. That figure dovetails nicely with the existing royalty payment structure of 9.1 cents for every time a song is “reproduced” in the form of a new CD, a vinyle record, or a downloaded MP3, et al. In other unique words, royalty payments owed for 100 streams of song would equal those owed for one digital grabbing of said song.

The likes of Google, Amazon, Spotify and other interested parties are all expected to offer up their own suggestions for payment plans in the days ahead. Whereas Apple’s intentions are to make the system “fair, simple and transparent”, though Spotify will no doubt fiercely oppose it.

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