Apple proposes simplified payouts for streaming royaltiesApple has submitted a proposal to make payouts on streaming music even easier and more transparent with a flat rate amount per play. Currently, deals are negotiated between streaming companies and labels with payouts ranging from 10 to 12% of overall revenue but there is no consistency across the board. The new proposal would offer a suggested rate of $0.00091 per stream, or 9.1 cents per 100 plays. This change would make the royalties the same for 100 plays and one download, which is appealing for artists.
From Billboard's report:
Apple's suggested royalty structure would make accounting simpler and more transparent, but it would also make it more costly to run a free service, since streaming companies would have to pay a minimum rate, rather than a percentage of revenue. The current system arguably benefits Spotify and YouTube, since their free tiers don't generate much revenue compared to paid services. At the same time, such a rate could reduce the royalties paid to songwri...
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Apple proposes simplified payouts for streaming royalties
