If you've been wondering how much exactly Apple will be paying out for all the music they'll be making available via iTunes Radio, it looks like some answers might just be available for now. At least according to Hannah Karp and Jessica E. Lessin of the Wall Street Journal:
During iTunes Radio’s first year, Apple will pay a label 0.13 cents each time a song is played, as well as 15% of net advertising revenue, proportionate to a given label’s share of the music played on iTunes. In the second year, that bumps up to 0.14 cents per listen, plus 19% of ad revenue.
That compares to the 0.12 cents Pandora pays labels per listen on its free service. Apple is also offering music publishers more than twice as much in royalties than Pandora does.
How much record labels, and more importantly, artists get paid for the use of their work has been and likely will continue to be contentious. Many artists got screwed by labels in the early days, and little has been done to rectify that over the years. iTunes, however, and the digital music revolution, has made it possible for many artists to disintermediate the labels and make a living off sales of their music, not just sales of concert tickets.
Subscription and streaming services might be a little harder to figure out, at least initially. Apple's model, however, which bundles in advertising and, potentially more importantly, an incredibly easy path to iTunes purchases, could be different.
iTunes Radio will be made available to the general public later this fall. Do you plan on using it for music discovery, and, do you think that'll lead you to buying more music as well?
Source: Wall Street Journal