In one of its many efforts to lead the audiovisual market, Apple Music has achieved a closer collaboration with major labels in the sector. Warner Music Group, whose catalog is made up of artists of the stature of Ed Sheeran, Red Hot Chili Peppers or Bruno Mars, has agreed with the technology company based in Cupertino an agreement whereby the rates paid by Apple are lower than what they were paying so far.
Thanks to that, Apple will earn more benefits and, perhaps, Apple Music users will take advantage of this agreement due to a possible reduction in the monthly price of the service. Warner Music is not the only one with whom Apple is in negotiations, Sony Music Entertainment could sign a similar agreement very soon.
Apple's calculations are very simple: The more subscribers, the less money the North American company will have to pay the record company. This agreement with Warner Music Group It can bring great benefits to the North American company.
Last June, we had news about Apple's intentions to lower the payment it made for each of its subscribers. It was very difficult to refuse the proposal made by the Cupertino boys, because together with Spotify, Apple Music has become the main source of income for the huge recording industry.
The agreement between both parties is subject to the growth of the music streaming service on the platform offered by Apple. At the moment, Apple was paying around 58% of the revenue its platform generated. According to the report, A 3% drop has been negotiated, offering to pay around 55%. Although it is possible that the percentage saved will be higher if a series of subscriber objectives included in the agreement are met.
It turns out that music digitization isn't killing the record industry after all. Worldwide music sales grew by around 5.9% last year, which corresponds to about $ 15.700 billion, and Goldman Sachs estimates that it could reach $ 41.000 billion in 2030.
Currently, Much of this growth can be attributed to the popularity of paid music services. And it is that since this summer, Spotify it has more than 60 million paying subscribers, well above Apple Music, with just over 27 million paying subscribers.
