Even though Apple Inc is set to launch their music streaming service in less than a day from now, on Monday, June 8, 2015, the company is still negotiating terms with record labels.
The labels are trying to get better revenue than they received on their previous deals with Spotify Ltg, a much older music streaming service that the ever ambitious Apple Inc will be competing with once they enter the market. Even though everyone wants to close a deal before the launch on June 8, things still remain uncertain.
Currently the labels are receiving 55 percent (55%) of Spotify’s monthly $9.99 rate, but they want to talk Apple into letting them take closer to 60 percent (60%).
However, there’s reason to be optimistic as Moris, Sony Music CEO Doug, announced yesterday, June 6, 2015, that Apple will be making an announcement tomorrow June 8, 2015 at their Worldwide Developers Conference.
In fact he hopes that due to their popularity and marketability Apple Inc will be able to infuse the music business with some energy and return the industry to its former days of glory from before pirating and illegal downloads became so popular.
He went on to add that artists could see an increase in sails as Apple will most likely advertise inside their music streaming app, a feature that Spotify was never quite popular enough to implement – “Spotify has never really advertised because it’s still not profitable. I think that Apple will advertise and the result of this will have halo effect on the entire streaming service [market]”.
Experts say that most recordings these days are being sold through digital stores such as Apple’s iTunes, but while they still benefit artists and labels to an extent, sales have only declined since 2003 when iTunes launched.
It is because of this very reason that Apple Inc felt it was critical for them to launch a music streaming service. Whether they’re streaming music, movies or tutorials, it’s an increasingly popular practice among internet users and in order for Apple to stay relevant they had to be represented in the trend.
Rumor has it that Apple Inc’s streaming service will closely resemble a modernized version of their iTunes radio app.
In addition to the songs, the service is also expected to provide users with behind the scenes videos from recording sessions of their favorite artists. Not all musicians were willing to allow the company to send in a team shoot and produce these videos, but enough of them did that the project was worth implementing. The program is called Apple Connect and as the name suggests, is intended to bring fans closer to the artists they adore.
Image Source: limptincmusic.com