Published on : Sep 07, 2017
Technology giant Apple Inc. has announced that their deal with Warner Music Group for on-demand music service has been reached. Apple had introduced the on-demand song service for its consumers couple of years ago, and since then has been trying to lure music companies to join in. Warner Music Group is the first, and the pact with Sony Music Entertainment could be next.
Under this deal, Warner will give a catalog to Apple that includes the Red Hot Chili Peppers, Bruno Mars, and Ed Sheeran, for its online store - iTunes and the streaming service, called Apple Music. Apple has offered to pay the record labels under the association a sum of percentage of sales from the subscribers of Apple Music. A framework has been chalked out about how large technology companies and music rights holders can share assets on on-demand streaming, which is quickly turning into the dominant source of sales for the business of music in the U.S. The owners of the record labels are willing to accept a moderate share of the sales from this emerging source of on-demand music, provided they are assured that these services will continue to find registered users at an impressive rate.
Another landmark achievement for Apple and the future of on-demand music would be the joining of Sony Music Entertainment, the company that holds second-largest record label. However, Apple’s pursuance to convince Universal Music Group, the biggest record label company, seems to have hit a rough patch. It must be noted that while several services such as YouTube, Pandora, and Spotify provide free music (to listen) to its audiences, Apple only sells a paid on-demand service.