Report: Apple Wants Deal From Record Labels

Apple has opened talks with record labels about getting rights for a music-streaming service — but has gotten plenty of push back because its offer is seen as way too cheap, The NYPost has learned.

The tech titan, the most valuable company in the world, made an initial offer to the label of about 6 cents per 100 songs streamed, ClaireAtkinson quotes sources as saying.

That’s about half of the 12 cents per 100 songs paid by Pandora, the leading online radio service that Apple is taking aim at, sources said.

While the labels would admit Apple’s music service could tap a whole new revenue stream for them, they are loath to say yes to the offer as the industry is fighting on Capitol Hill to prevent Pandora from lowering its current rate, sources added.

Music label insiders suggest Apple — which is sitting on a cash hoard of roughly $137 billion — ought to pay at least the rate set by the Copyright Royalty Board, or about 21 cents per 100 songs streamed.

By comparison, terrestrial radio-backed online services — such as iHeart — pay about 22 cents per 100 songs streamed.

Subscription service Spotify pays the highest rate for its service, 35 cents per 100 songs streamed, sources said.

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