Apple wants to pay record labels far less than the industry standard to stream their music, but the companies won't have it, saying the offer is far too cheap. Now the tech titan has pushed back the launch of its rumored music streaming service, much to everyone's dismay.
That's because Apple music streaming service could tap a whole new revenue stream for the music biz. But many insiders feel it's unfair for the company—"which is sitting on a cash hoard of roughly $137 billion," reports The New York Post— to only pay 6 cents per 100 songs streamed as opposed to the industry standard of 21 cents per 100 songs.
By comparison, Pandora pays 12 cents per 100 songs streamed, while Spotify does slightly better, paying 35 cents for the same number of songs.
The situation is frustrating for everyone involved, but the deal probably won't leave the table anytime soon. As Rich Greenfield, media analyst with BTIG, put it: “Everyone’s trying to figure out a better structure. I wouldn’t say any of them are giving up.”
[via The New York Post]