Apple strikes music deal with Warner, aims for pact with Sony

Apple Music, which launched a bit over two years ago, just got a huge boost to its current catalogue. The Cupertino giant recently managed to strike a deal with Warner, in which Apple will reportedly pay a lower percentage of sales from Apple Music subscribers than its previous rate.

Apple had been pushing for a rate cut in its new round of talks, following Spotify's successful renegotiation of their percentage down from 55 percent to 52 percent, although the lower rate applies only if Spotify meets certain performance metrics.

Also, Apple has been paying labels 58 percent of sales, according to the Bloomberg report, which is above that of Spotify. Currently, Apple is now targeting a rate of 55 percent with labels, which would decrease even further if subscriber numbers met corresponding targets. The report also stated that Sony and Apple are on the verge of a deal while a separate one with the Universal Media Group is further off.

Warner Music has a roster of artists like Metallica, Linkin Park, Bruno Mars, Ed Sheeran, and others whose music will become available in iTunes and Apple Music.

Source: Bloomberg

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