INTERESTING
Apple Signs Deal With Universal Music Group for iCloud, Major Publishers Also on Board
By Ed Christman with Antony Bruno
At the same time, Apple has also reach an accord with the four major music publishers licensing deals, sources said. The publishers nailed down a 12% of cloud revenue rate, while the major record labels are believed to be entitled to 58% of revenue, leaving Apple with the remaining 30%.
While sources said Universal and Sony Music Entertainment were asking for 60% of the revenue, they now suggest some sort of a comprise deal was reached at the last minute in order to accommodate the 12% of revenue royalty rate being paid to publishers.
Apple has yet to reach deals with the tens of thousands of independent publishers and labels. Sources say that it will offer indie publishers the same 12% rate it is paying the major publishers. However, Apple began negotiations with independent labels by offering that sector 53% of cloud revenue. Some indie label executives say they are pushing back on Apple to get a higher cut.
Meanwhile, a report in CNET has a few other tidbits of information:
Debonair
iCloud will kill off the the multi billion dollar music industry. Guys getting really rich off music is over unless you are a mega superstar. Music will become a business where people make a couple of hundred thousand a year maybe a million on a good year. That balling you saw over the last 20 years is over. I’m not saying this is a bad thing but going from $20 CDs to 99 cents digital singles to a percentage of streaming revenue of a catalog of a million songs is going to dramatic cut revenue across the board for everybody that works in the industry except for the top music executives at the labels.
If you are an artists with a significant following, you will be a damn fool to signed any record deal with a major label.
TERENCE
this article sounding interesting so u can still buy music on itunes and stream other music that u will probably have to pay for to listen 2 right! I wonder if this is to compete with amazon who ithink also has a cloud type system similar to this i think! i guess the music digital age is upon us..i hope that this will not be the end of CDS cuz tape and 8 tracks are dead…. i love my ipod and mp3 songs but i love having an actual cd to look it having everything digitized just makes everything easier i guess! Im sure the music industry will be coming upon an new regime…
DeAndre
Debonair I some what agree with you the music business when it comes to majors is dead. You will make more money by being independent. The business of music is becoming just a regular 9 to 5 when it comes to pay outs and making money. Terence I’m sorry to tell you but because of the digital millennium act yes the end of CDs and DVDs and Blue rays are coming which will drive everyone to buy Ipods etc…….. the consumer has been played and its funny they gave you i-tunes like crack to get you hooked to the system of downloading music and movies. now that most consumers get music and movies from some type of download base system now its time to get you off these CDs and DVDs once they gone they can then jack the price up on Itunes and start back making big money like they use to n the record business. Trust and believe that 99cent shit wont be around to much longer it will be more like 3 dollars a single to download and they also working on tech that will block you from sharing music and moving it from computer to device so easy