Apple is set to announce a new streaming service in the coming days that would compete with products offered by companies such as Spotify. But there’s just one catch: they haven’t actually struck a deal with record labels for access to their music, according to a report in Bloomberg News.
For years, Apple has dominated the digital music space, with its iTunes music software capturing huge shares of the market for digital downloads. But recently, consumer tastes have shifted from downloading to streaming, putting Apple in the position to play catch up with upstart services such as Spotify. Tamara Gaffney, principal of Adobe Digital Index, told Bloomberg that the central theme of the negotiations is: “Who is going to get the majority share of the profit from the content?”
“Apple has always wanted to get a lot of the share, and they’re now in a negotiating situation with content manufacturers who want more of the share for themselves — it’s a really tough space.”
While Spotify pays labels 55% of its subscription revenue, the labels are playing hardball with Apple, asking for closer to 60%, according to the report.
More Must-Read Stories From TIME
- How an Online Pharmacy Sold Millions Worth Of Dubious COVID-19 Drugs — While Patients Paid the Price
- Why Literally Millions of Americans Are Quitting Their Jobs
- Meet the Women Participating in the Study That Could Change Future of Breast Cancer
- Inside the Battle for the Hearts and Minds of Tomorrow's Business Leaders
- An Innovative Washington Law Aims to Get Foreign-Trained Doctors Back in Hospitals
- Why the Ex-Husband of a Missing Chinese Billionaire Is Risking All to Tell Their Story
- Timothée Chalamet Wants You to Wear Your Heart on Your Sleeve