Apple Said to Seek Lower Rate in New Deals With Record Labels
- Labels’ deals with Apple expire in the next couple weeks
- Apple Music is the second-largest paid streaming service
The Apple Inc. logo is seen on the facade of the new Apple Inc. flagship store at Union Square in San Francisco, California.
Photographer: David Paul Morris/BloombergApple Inc. is seeking to reduce record labels’ share of revenue from streaming, part of negotiations to revise the iPhone maker’s overall relationship with the music industry, according to people familiar with the matter.
The talks cover Apple’s agreements for Apple Music, the two-year-old streaming service offering millions of songs on demand, and iTunes, the store where people can buy individual songs or albums. The record labels’ deals with Apple expire at the end of June, though they are likely to be extended if the parties can’t agree on new terms by then, said the people, who asked not to be identified discussing private information.