When Apple Music was launched, it was revealed that the service would cost customers $10 a month. Now for those who are curious, ever wonder how much of it Apple keeps and how much will go towards the record labels who are licensing the songs to Apple? Well according to a report from Re/code, it turns out that Apple is paying higher than the industry standard.
Re/code has confirmed with Apple exec Robert Kondrk and executives at record labels that the Cupertino company will be paying them 71.5% of Apple Music’s subscription revenue. This is based in the US and this number will fluctuate in overseas markets, but it is expected to average out at around the 73% mark.
The 71.5% revenue split is supposedly higher than what the industry standard is at the moment, which is why the record labels have agreed to allow a 3-month trial period. Other services such as Spotify and Beats Music before offered relatively short trial periods, like a month for Spotify, so for Apple Music to offer up 3 months is pretty generous.
Previously the 3-month trial was contested by the labels but because Apple offered a higher revenue split, they finally acquiesced to it. Now it should be noted that the 71.5% split will go to the labels, not the artists themselves. This means that out of the 71.5%, a different amount will be given to the artists involved depending on their contract with the label.
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