Reports: Music Labels Want Bigger Piece Of Apple Fees

Music labels are hoping to convince Apple to hand over an unusually large slice of the monthly subscription fees from its soon-to-arrive paid streaming service, The NY Post has learned.

Music’s top negotiators are looking for anywhere between 60 percent and 70 percent of Apple’s expected $10 per month subscriber fees, industry sources said.

That is much higher than the roughly 50 percent cut the major labels get from other paid streaming services — though Spotify may be facing a price hike after ongoing talks with Universal Music for a new deal are completed.

Overall, music labels receive 46 percent of the paid subscription streaming revenue, after tax, according to Music Business World, which cites an Ernst & Young report.

The labels’ tough stance comes as they try to recover from what they believe were missed opportunities at revenue.

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