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More than 70% of Apple Music revenues passed to rights owners, Apple confirms

Apple will pay out more than 70 cents of every dollar it earns from its new streaming music service, the company revealed on Monday, a slight premium over the rates paid by competing services like Spotify.




In the U.S., 71.5 percent of Apple Music subscription revenue will go to labels, songwriters, artists, and other rights holders, iTunes content chief Robert Kondrk told Re/code. That number will rise as high as 73 percent outside of the country.

Crucially, Apple will not pay royalties during the three-month free trial period. This is said to have been a "bone of contention" during negotiations with labels, but Apple won them over by promising a higher overall payout.

Royalty rates for Beats 1 and the revamped iTunes Radio— now known as Apple Music radio— will be lower, though the exact percentages were not revealed.

Apple revealed its new music service during last week's keynote address at the annual Worldwide Developers Conference, and hopes to win consumers over with the expansive iTunes catalog and exclusive features. Chief among those is Beats 1, a twenty-four-seven worldwide radio channel helmed by former BBC 1 DJ Zane Lowe, HOT 97 host Ebro Darden, and British tastemaker Julie Adenuga.

Apple Music will launch on June 30 for $9.99 per month, or $14.99 per month for a family of up to six people.